Norway Interest Deduction Calculator
Work out how much tax you save on your interest expenses, and check whether you have enough taxable income to use the full deduction.
How to use the interest deduction calculator
- Enter how much you pay in interest over the year (mortgage, loans, credit cards, etc.).
- Enter your taxable income before the interest deduction is subtracted.
- See how much tax you save, and whether you have enough income to use the full deduction.
How the interest deduction is calculated
Worked example: 80,000 kr in interest expenses reduces your tax by 80,000 × 22 % = 17,600 kr. Note what the deduction actually does: it lowers your tax, not the interest rate on your loan. You get 22 øre back per krone of interest paid, so each krone of interest really costs you 78 øre — the loan gets cheaper, but never free.
Interest expenses are deducted from "alminnelig inntekt" (ordinary/general income), which is taxed at a flat 22% rate regardless of how much you earn (the progressive "trinnskatt" bracket tax is unaffected by the interest deduction). That means every krone of deductible interest reduces your tax by 22 øre — until you run out of taxable income to deduct it from.
Married couples can freely allocate interest expenses between themselves to make the best use of the deduction. Cohabiting partners must allocate based on who is actually responsible for the loan and who paid the interest.
Frequently asked questions
What happens if my interest expenses are higher than my income?
Then you can't use the full deduction in that tax year — there isn't enough taxable income to deduct it from. Any resulting deficit can in some cases be carried forward to later years, but that's a more complex assessment depending on your overall tax situation.
Does the interest deduction apply to all types of loans?
Yes, in general — mortgages, consumer loans, student loans (Lånekassen), car loans and credit card debt all qualify for the interest deduction. Principal repayments (paying down the loan itself) don't give a deduction, only the interest portion.
Do I need to do anything to get the interest deduction?
Usually not — your bank reports your interest expenses directly to the Norwegian Tax Administration, and the amount is normally pre-filled in your tax return. Still worth checking the figure is correct, especially if you have multiple loans or switched banks during the year.