Property tax
Property tax is an optional municipal tax on real property. Each year the municipal council decides whether property tax should be collected in the municipality, which categories are covered and which rates apply. Both the level and the coverage therefore vary from municipality to municipality. Huseiernes Landsforbund and SSB publish annual overviews, municipality by municipality.
The legal basis is the 1975 eigedomsskattelova (the Property Tax Act), which sets the limits for what the municipal council can decide. Each year the council chooses which levy option applies under eigedomsskattelova § 3: the whole municipality, urban areas only, commercial property only, or only power plants, wind farms, power grids and installations that previously fell under the term "verk og bruk" (works and plants). The rate must be between 1 and 7 per mille; for housing and holiday homes the ceiling is 4 per mille. In the first year a municipality introduces property tax, the maximum rate is 1 per mille, and the increase is limited to 1 per mille per year.
Under the act, the tax base should correspond to the assumed market value. For housing, the municipality can choose between two models: its own local valuation with assessed values that typically last for ten years, or the Norwegian Tax Administration's wealth assessment basis (housing value). Local valuation starts from UFA, location, year of construction and condition. The wealth assessment basis is built on the price model from SSB and is updated automatically each year. A mandatory reduction factor of at least 30% for housing and holiday homes lowers the base before the rate is applied, and the municipality can also set a basic allowance per dwelling unit.
Commercial property is valued locally on the basis of substance value (replacement cost minus wear and age) or rental value. After the change in the law from 2019, production equipment and production installations are no longer included in the base for ordinary commercial property, only for power plants and wind power. Property tax on hydropower and wind power is calculated under special rules and makes a significant contribution to the income side of many municipalities.
The levy decision should as far as possible be made by 1 March each year, see eigedomsskattelova § 14, and the tax lists are made available for public inspection for three weeks. Appeals are sent to the municipality within six weeks; an expert committee handles value assessments, and the final review takes place in the district court through an overskjønn (appeal valuation). Property tax is paid by the owner as recorded in Grunnboken, whether or not the property is let.
In Placepoint you find information about each individual property in the property panel, including UFA, matrikkel data and valuation bases that are relevant for estimating property tax. If you need to compare many properties across municipalities, Analyze and reports can give you an overall picture.
How it looks in Placepoint
In Placepoint you find this in Property panel:
From the Placepoint dictionary: Property tax
More information: Lovdata: Eigedomsskattelova, Skatteetaten: Housing and property, SSB: Eiendomsskatt, Store norske leksikon: eiendomsskatt
English: Property tax (municipal).
Frequently asked questions
What is property tax?
Property tax is a municipal tax on real property. The municipal council decides whether the municipality should levy property tax, and the rate varies from municipality to municipality.
Who has to pay property tax?
All owners of real property in municipalities that have introduced property tax must pay. This applies to both private individuals and companies that own housing, holiday property or commercial property.
What is the maximum property tax rate in Norway?
The maximum lawful property tax rate is 4 per mille for housing and holiday properties. For commercial property, the rate can be set up to 7 per mille. The municipality can choose lower rates.
What is the tax base for property tax?
The tax base is the property's assessed value set by the municipality, which can be based on its own valuation or on the housing value from the Norwegian Tax Administration. The municipality can apply a reduction factor.
Where do I find information about property tax in my municipality?
Huseiernes Landsforbund publishes overviews of property tax by municipality. You can also find information directly on your municipality's website, or in Placepoint when you analyse properties.