BSU (youth housing savings) is a savings account where you save for housing and get money back on your taxes. In 2026 you can save up to 27,500 kroner per year and claim 10 percent as a tax deduction. The scheme applies to you under 34 years old who do not own a home.
What is BSU (youth housing savings)?
BSU (youth housing savings) is a savings scheme from the state for young people under 34 years old. You save into a separate bank account, and the state rewards you with a tax deduction each year you deposit money. The goal is to help young people into the housing market.
Many people do not use the scheme, even though they have the right to it. Then you leave money with the state. If you have taxable income from work and do not yet own a home, BSU is almost always worth it. If you want to understand saving and accounts generally, read the guide on personal finance in Norway first.
Who can save in BSU in 2026?
You can save in BSU until the year you turn 33. That is why the scheme is called "for youth" and applies to you under 34 years old. If you turn 34 during the year, you do not get a deduction that year.
Two requirements must be met (per Skatteetaten, effective for 2026):
- You do not own a home from before – not even a share of a home.
- You have taxable income, meaning you pay taxes.
The second requirement surprises many people. The deduction is deducted directly from the taxes you owe. If you pay little or no tax, you get little or no benefit. You can never get a deduction larger than your taxes. If you are a student with low income, it may be worthwhile to wait with large deposits until you earn more.
How much can you save, and what do you get in return?
In 2026 you can deposit up to 27,500 kroner per year into the BSU account. In total you can save up to 300,000 kroner (per Skatteetaten). The deduction is 10 percent of what you deposit the same year.
If you fill the account with 27,500 kroner, you pay 2,750 kroner less in taxes. It is like getting 2,750 kroner for free from the state to save for your own home.
| BSU rule | Amount in 2026 |
|---|---|
| Age limit | until the year you turn 33 |
| Max deposit per year | 27,500 kr |
| Max total savings | 300,000 kr |
| Tax deduction | 10% of annual deposit |
| Max deduction per year | 2,750 kr |
The figures are from Skatteetaten and apply for the tax year 2026. If you have deposited 300,000 kroner in total, you cannot deposit more, but the money and interest will remain in the account.
Interest on BSU – often higher than on a regular savings account
The bank determines the interest rate on the BSU account itself. It is often higher than on a regular savings account. This means you get both a tax deduction and good interest on the same amount.
The interest rate varies between banks. It pays to compare before you choose. SamfunnPrep recommends checking interest rates and terms at several banks first. If you need an account, see how to open a bank account in Norway as a newcomer.
What can BSU money be used for?
BSU money should be used for your own home. This covers two things (per Skatteetaten):
- Purchase of your own home that you will live in yourself.
- Repayment of interest and principal on a home loan on your own home.
You can use the money to buy a home, or to pay down a mortgage you already have. If you are buying for the first time, the guide on home purchase in Norway for immigrants can help you further.
The trap: if you use the money wrong, you pay it all back
This is the trap many people do not know about. If you use BSU money for something other than housing, you do not only lose the deduction for that one year. You must repay all previous years' deductions as additional tax (per Skatteetaten).
If you withdraw the money for a car or a vacation, Skatteetaten calculates how much you have received in deductions over the years. The entire amount is added as extra tax the year you break the rules. That is why you should not touch the BSU account until you actually buy or pay down a home.
If you are unsure about deductions generally, there are several you can miss – see the overview of tax deductions immigrants often forget.
BSU or other forms of saving?
BSU is safe and gives a guaranteed tax deduction, but you can only use the money for housing. If you want to save more freely, you can combine BSU with other schemes. Many fill the BSU first, and put the rest somewhere else.
A common alternative is to save in funds and share savings account (ASK). There the money can grow more over time, but the value can also fall. BSU gives lower risk and a fixed deduction each year.
You will find more free tools and checklists for finance and daily life in Norway among SamfunnPrep's tools.
How to get started
- Check that you are under 34 years old and do not own a home.
- Compare interest rates and terms for BSU at several banks.
- Open a BSU account at the bank you choose.
- Deposit money regularly, up to 27,500 kroner per year.
- Check your tax return – the deduction should come automatically.
The rules around taxes, banking and housing are part of what you should know as new in Norway. Many of them are also part of the curriculum for the social studies test – practice for free on SamfunnPrep.
