Mileage allowance in Norway: everything you wanted to know

Mileage allowance is a reimbursement system that compensates employees for using their private cars for work-related travel. In Norway, the standard mileage rate is set by the Norwegian Tax Administration and is designed to cover all costs associated with operating a vehicle, like fuel, insurance, depreciation and maintenance.Here’s a quick overview of how the mileage allowance works in Norway:Employers can choose to reimburse employees based on either the tax-free rate or the state rate, but they must handle the tax implications accordingly. Additional allowances are available for carrying passengers, driving on forest or construction roads, or transporting heavy equipment, each adding NOK 1.00 (€0.088) per kilometre.

Here's a breakdown of the current mileage allowance rates set by the Norwegian Tax Administration (Skatteetaten) for 2024.

The standard government mileage allowance rate for 2024 is set at 3.50 NOK (€0.31) per kilometre for both normal cars and electric cars, owned by employees, along with additional rates for special circumstances:

When employees use a company car, whether owned or leased by the employer, the private use of the vehicle is considered a taxable benefit. This means it's treated as part of your salary for tax purposes.

This method is the most common and applies to the majority of company cars. The taxable benefit is calculated based on the car's list price when new. 

In some situations, the standard calculation may not accurately reflect the benefit value derived from the car, either being too high or too low.

The rate for standard and private use of motor boat is NOK 7.50  (€0.66) per km, along with additional rates for special circumstances:

The rate for snowmobile and ATV is NOK 10.00 (€ 0.88) per km, along with additional rates for special circumstances:

The rate for standard and private use of heavy motorcycles (up to 125 ccm) is NOK 2.95 (€0.26) per km, along with additional rates for special circumstances:  

The rate for standard and private use of mopeds and light motorcycles (up to 125 ccm) is NOK 2.00 (€0.18) per km, along with additional rates for special circumstances:

Travel allowances are separate and might cover additional expenses incurred during your trip like:

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