The government proposes several changes to the wealth tax in the 2025 national budget that will affect both individuals and business owners. The basic deduction is being increased, and the state will take a larger share of the wealth tax. However, this is not supposed to affect the total tax revenue for the municipalities. Additionally, a new scheme for deferred payment of wealth tax will be presented for public consultation. Let's take a closer look at the proposed changes.
Increase in the Basic Deduction
The basic deduction is proposed to increase from NOK 1.7 million (NOK 3.4 million for married couples) to NOK 1.76 million (NOK 3.52 million for married couples). The threshold for the second tier of the wealth tax is also proposed to rise from NOK 20 million (NOK 40 million for married couples) to NOK 20.7 million (NOK 41.4 million for married couples).
The lower limit for high taxable valuation of primary dwellings will remain at NOK 10 million.
The State's Share of the Wealth Tax will Increases
In line with the Parliament's decision to halve the rate of the municipal wealth tax over the next two years, it is proposed to reduce the municipal rate from 0.7% to 0.525% in 2025. The state wealth tax will increase correspondingly from 0.3% to 0.475% in tier 1, and from 0.4% to 0.575% in tier 2.
However, these changes will not impact municipalities' total tax revenue, as the percentage of taxable general income allocated to municipalities will be adjusted accordingly.
New Scheme for Deferred Payment of Wealth Tax
A new scheme allowing business owners facing liquidity challenges to defer wealth tax payments will be presented for consultation.
This new scheme aims to ease the burden of wealth tax, which must be paid regardless of whether business owners have the liquid assets to cover it. Unlike previous deferral schemes for business owners running at a loss, the new scheme is intended to be permanent and offer a longer deferral period. The deferred tax will accrue interest at market rates.
The new deferral scheme is expected to take effect from the tax year of 2026.
Les også: Updates on the personal taxes and fees in the National budget 2025
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