# Tax 2027: proposal to lower social insurance contributions

Tax 2027: the government proposes lower social insurance contributions and a higher personal allowance. See rates, a salary example and PAYE limits.

Canonical: https://samfunnprep.no/en/nyheter/skatt-2027-forslag-inntekt
Language: en
Publisher: SamfunnPrep
Author: Hlib Suslov
Published: 2026-10-08T11:36:56.782+00:00
Modified: 2026-10-09T14:24:58.159637+00:00
AI use policy: https://samfunnprep.no/ai-policy.txt

## Key takeaways

- 7.4% on salary proposed Social insurance contributions on ordinary salary are proposed to fall by 0.2 percentage points in 2027.
- Personal allowance of NOK 120,180 This is the government’s proposed allowance for 2027, not a cash payment.
- PAYE still proposed at 25% The standard PAYE rate does not get the same reduction as social insurance contributions on ordinary salary.

Tax in 2027 is proposed to fall through lower social insurance contributions and a higher personal allowance. The government presented the proposal on 7 October 2026. It has not been adopted. Any savings depend on your income and tax scheme.

## What does the government propose for income tax?

The government proposes a total **NOK 6.4 billion reduction in income tax** in 2027. The main measures are lower social insurance contributions and a larger personal allowance.

This does not mean everyone receives the same amount. Finansdepartementet, Norway’s Ministry of Finance, gives an example with **NOK 750,000 in salary and standard deductions**. The estimated tax cut is about **NOK 1,800 in 2027**. Read [the ministry’s announcement about proposed income tax cuts](https://www.regjeringen.no/no/aktuelt/foreslar-milliardkutt-i-inntektsskatten-storste-pa-over-20-ar/id3174677/).

If you are new to the tax system, SamfunnPrep’s [simple guide to tax in Norway](https://samfunnprep.no/en/articles/skatt-enkelt-forklart-innvandrere) explains tax deduction cards, deductions and tax assessments.

## Which rates and amounts could change?

Social insurance contributions on salary are proposed to fall from **7.6% to 7.4%**. That is a drop of 0.2 percentage points. The personal allowance is proposed to rise to **NOK 120,180**.

Here are some key figures in [Finansdepartementet’s rate table for 2027](https://www.regjeringen.no/no/tema/okonomi-og-budsjett/skatter-og-avgifter/skatte-og-avgiftssatser/skattesatser-2027/id3173438/):

| Rule | Adopted for 2026 | Proposal for 2027 |
|---|---:|---:|
| Social insurance contributions on salary | 7.6% | 7.4% |
| Social insurance contributions on other business income | 10.8% | 10.6% |
| Personal allowance | NOK 114,540 | NOK 120,180 |
| Threshold for bracket tax, bracket 1 | NOK 226,100 | NOK 235,150 |
| Standard rate on ordinary income | 22% | 22% |
| Standard PAYE tax on salary | 25% | 25% |

The **personal allowance** is deducted from the basis for tax on ordinary income. It is not money the government pays into your account. [The budget proposal, Prop. 1 LS, explains the parts of income tax](https://www.regjeringen.no/no/dokumenter/prop.-1-ls-20262027/id3176120/?ch=1).

## Will your tax fall if you use PAYE?

The standard PAYE rate is still proposed at **25%**. You therefore cannot directly subtract 0.2 percentage points from that rate just because social insurance contributions on ordinary salary are proposed to fall.

PAYE, or kildeskatt på lønn, is a separate tax scheme for foreign workers. Before comparing figures, find out which scheme you use. The table is not a complete overview of PAYE exceptions or eligibility.

## Must you change your tax deduction card now?

The news concerns the proposal for **2027**, not a new tax rate on your salary in October 2026. Wait for adopted rules when planning next year’s tax.

Still keep expected income and deductions up to date for the year your tax deduction card covers. A budget proposal does not correct a wrong income estimate. See [the guide to tax deduction cards and unexpected tax bills](https://samfunnprep.no/en/articles/skattekort-baksmell-2026) for how to check your information.

Before comparing next year’s tax:

- Check whether you use ordinary tax or PAYE.
- Compare annual amounts with the same income and deductions.
- Wait for adopted rules before treating a proposal as certain.

SamfunnPrep’s [practical tools for everyday life in Norway](https://samfunnprep.no/en/verktoy) help with other tasks while Stortinget, Norway’s parliament, considers the budget.

## FAQ

### Has the tax proposal for 2027 been adopted?

No. It is the government’s proposal from 7 October 2026. Stortinget will consider it.

### What is proposed for social insurance contributions on salary?

The government proposes 7.4% in 2027, compared with 7.6% in 2026. The proposal has not been adopted.

### Will everyone pay NOK 1,800 less tax?

No. This is the ministry’s example for an employee with NOK 750,000 in salary and standard deductions.

### Is the PAYE rate proposed to fall?

The standard PAYE rate on salary is still proposed at 25%.

### Is the personal allowance a payment?

No. It reduces the basis for tax on ordinary income. It is not a bill or payment for the same amount.

## Sources

- [Foreslår milliardkutt i inntektsskatten – største på over 20 år](https://www.regjeringen.no/no/aktuelt/foreslar-milliardkutt-i-inntektsskatten-storste-pa-over-20-ar/id3174677/)
- [Skattesatser 2027](https://www.regjeringen.no/no/tema/okonomi-og-budsjett/skatter-og-avgifter/skatte-og-avgiftssatser/skattesatser-2027/id3173438/)
- [Prop. 1 LS (2026–2027), Skatter og avgifter 2027](https://www.regjeringen.no/no/dokumenter/prop.-1-ls-20262027/id3176120/?ch=1)

Citation: Hlib Suslov, "Tax 2027: proposal to lower social insurance contributions", SamfunnPrep, 2026-10-08T11:36:56.782+00:00, https://samfunnprep.no/en/nyheter/skatt-2027-forslag-inntekt