See how your wallet will change. Norway has presented its draft budget for 2026

The government proposes to reduce the tax burden for employees. The reliefs will range from about NOK 200 to about NOK 1,400, with an average of NOK 800. The draft also provides for an increase in the tax-free allowance for wealth tax (bunnfradrag). Additionally, there will be an increase in the deduction limit for union dues and an extension of regional reliefs, which benefit, among others, residents of the Finnmark district.

The budget plans to limit the VAT exemption for electric cars. The threshold will be lowered from NOK 500,000 to NOK 300,000. From 2027, the exemption is to be completely abolished. Gasoline fees will be increased – the road tax will rise by 2.2 percent, while the CO₂ tax on gasoline will be raised by 16.9 percent.

For diesel, a total increase in fees related to CO₂ emissions and road use of NOK 0.94 per liter has been announced. The government wants to eliminate free ferry crossings, which will affect travel costs for residents of coastal regions.

One of the key elements of the budget is the continuation of the Norgespris energy support, which is also to apply in 2026. It is estimated that the total cost of subsidies will amount to NOK 11.5 billion, of which more than NOK 9.0 billion will be consumed by the project introduced in October. The system sets a fixed price of NOK 0.40 per kilowatt-hour before taxes, which may mean higher bills in summer and lower in winter, depending on consumption.

The budget proposals have been outlined in many areas: from taxes, through transport and energy fees, to support for families. For many Norwegians, they will mean both tax relief and higher costs related to fuel or maintaining an electric car.

Depending on lifestyle, place of residence, and energy consumption, the impact of the new budget on the 'wallet' will be very diverse. Some will feel an improvement, while others may face higher expenses in specific areas.