Your employee just drove from Oslo to the stunning fjords of Bergen for a business meeting, and now it’s time to calculate the mileage allowance. How do you make sure you’re not overpaying or, worse, undercompensating? In this guide, we provide the exact rates, tips, and insights you need to ensure accurate reimbursements for mileage allowance in Norway. Let’s make your mileage allowance and car reimbursements as strong and reliable as a Norwegian’s coffee!
How does mileage allowance work in Norway?
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.
- Tax-free rate:
- Set by the Norwegian Tax Administration (Skatteetaten)
- NOK 3.50 (€0.31) per kilometre for cars, including electric cars
- Employees receive a base level of compensation without incurring additional tax liabilities
- State mileage rate:
- Published by the Ministry of Local Government and District Affairs (KDD)
- NOK 4.90 (€0.43) per kilometre for 2024
- The difference between the state rate and the tax-free rate (NOK 1.40 or €0.12 per kilometre) is taxable and must be reported by the employer
What are the mileage allowance rates in Norway for 2024?
Here's a breakdown of the current mileage allowance rates set by the Norwegian Tax Administration (Skatteetaten) for 2024.
Privately owned normal and electric cars by employees (rate per kilometre in 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:
Vehicle Type
Rate (per km)
Cost for 100 km
Additional Details
Normal Car / Electric Car
NOK 3.50
(€0.31)
350 NOK
(€31)
Standard tax-free allowance for private car use on business trips.
Additional for Passenger
+1.00
450 NOK
(€40)
Additional rate per kilometre per passenger.
Driving on Forest and Construction Roads
+1.00
450 NOK
(€40)
Additional rate per kilometre for challenging road conditions.
Tax implications for company cars
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.
1. Standard tax calculation for private use of company cars:
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.
Description
Calculation Basis
Rate
Initial List Price up to NOK 351,700 (€31,000)
Car's list price as new
30%
Excess over NOK 351,700 (€31,000)
Amount exceeding NOK 351,700 in list price (€31,000)
20%
Source
Self-employed individuals in Norway can also claim mileage allowance for business travel, using the same rates as employees.2. Discretionary assessment for special cases:
In some situations, the standard calculation may not accurately reflect the benefit value derived from the car, either being too high or too low.
Scenario
Tax Calculation Method
High Benefit Assumption
Flat rate of NOK 63,000 (€5,553) for the full year, adjusted pro rata if used part of the year.
Low Benefit Assumption (e.g., luxury upgrades)
Benefit calculated on an upward adjusted list price reflecting the market value.
Motor boat (rate per kilometre in 2024)
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:
Scenario
Rate per Kilometre
Cost for 100 km
Standard private use
NOK 7.50
(€0.66)
NOK 750
(€66)
With one passenger onboard
NOK 8.50
(€0.75)
NOK 850
(€75)
Navigation in restricted waters
NOK 8.50
(€0.75)
NOK 850
(€75)
Transport of heavy equipment
NOK 8.50
(€0.75)
NOK 850
(€75)
With one passenger + restricted waters
NOK 9.50
(€0.84)
NOK 950
(€84)
With one passenger + heavy equipment
NOK 9.50
(€0.84)
NOK 950
(€84)
Restricted waters + heavy equipment
NOK 9.50
(€0.84)
NOK 950
(€84)
With one passenger + restricted waters + heavy equipment
NOK 10.50
(€0.93)
NOK 1050
(€93)
Snowmobile and ATV (rate per kilometre in 2024)
The rate for snowmobile and ATV is NOK 10.00 (€ 0.88) per km, along with additional rates for special circumstances:
Scenario
Rate per Kilometre
Cost for 100 km
Standard private use
NOK 10.00
(€0.88)
NOK 1000
(€88)
With one passenger onboard
NOK 11.00
(€0.97)
NOK 1100
(€97)
Driving on forest and construction roads
NOK 11.00
(€0.97)
NOK 1100
(€97)
Transport of heavy equipment
NOK 11.00
(€0.97)
NOK 1100
(€97)
With one passenger + forest/construction roads
NOK 12.00
(€1.06)
NOK 1200
(€106)
With one passenger + heavy equipment
NOK 12.00
(€1.06)
NOK 1200
(€106)
Forest/construction roads + heavy equipment
NOK 12.00
(€1.06)
NOK 1200
(€106)
With one passenger + forest/construction roads + heavy equipment
NOK 13.00
(€1.15)
NOK 1300
(€115)
Heavy motorcycle (up to 125 ccm) (rate per kilometre in 2024)
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:
Scenario
Rate per Kilometre
Cost for 100 km
Standard private use
NOK 2.95
(€0.26)
NOK 295
(€26)
With one passenger onboard
NOK 3.95
(€0.35)
NOK 395
(€35)
Driving on forest and construction roads
NOK 3.95
(€0.35)
NOK 395
(€35)
Transport of heavy equipment
NOK 3.95
(€0.35)
NOK 395
(€35)
With one passenger + forest/construction roads
NOK 4.95
(€0.44)
NOK 495
(€44)
With one passenger + heavy equipment
NOK 4.95
(€0.44)
NOK 495
(€44)
Forest/construction roads + heavy equipment
NOK 4.95
(€0.44)
NOK 495
(€44)
With one passenger + forest/construction roads + heavy equipment
NOK 5.95
(€0.52)
NOK 595
(€52)
Moped or light motorcycle (up to 125 ccm) and other motorised means of transport
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:
Scenario
Rate per Kilometre
Cost for 100 km
Standard private use
NOK 2.00
(€0.18)
NOK 200
(€18)
With one passenger onboard
NOK 3.00
(€0.26)
NOK 300
(€26)
Driving on forest and construction roads
NOK 3.00
(€0.26)
NOK 300
(€26)
Transport of heavy equipment
NOK 3.00
(€0.26)
NOK 300
(€26)
With one passenger + forest/construction roads
NOK 4.00
(€0.35)
NOK 400
(€35)
With one passenger + heavy equipment
NOK 4.00
(€0.35)
NOK 400
(€35)
Forest/construction roads + heavy equipment
NOK 4.00
(€0.35)
NOK 400
(€35)
With one passenger + forest/construction roads + heavy equipment
NOK 5.00
(€0.44)
NOK 500
(€44)
What is not included in the mileage allowance?
Travel allowances are separate and might cover additional expenses incurred during your trip like:
- Parking fees: the cost of parking during your trip typically falls outside the mileage rate
- Tolls: any tolls you pay for on business travels are usually separate from the mileage rate
- Ferries: ferry fees may or may not be included in a per diem allowance, so it's best to check with your employer beforehand
- Per diem allowance: this separate travelling allowance, if offered by your employer, would cover daily expenses like meals and accommodation. Per diem rates can vary depending on the location and purpose of your trip. Consider using a per diem calculator to estimate these costs for different destinations. However, the Norwegian Tax Administration (Skatteetaten) also establishes per diem allowances or subsistence allowancefor business trips exceeding specific durations.
Simplify business travel with TravelPerk!
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, you’ll be able to keep employees on the road, in the air and on the go knowing you’re offsetting your business travel carbon footprint. Let TravelPerk manage your business travel so you can explore Norway and beyond—and leave the spreadsheets in the past.Frequently asked questions about mileage allowance for Norway
How to file a mileage allowance claim in Norway?
Can I claim a mileage allowance for using my own car for work?
What if my company offers a higher mileage allowance?
What other types of vehicles are covered by mileage allowances?
Is there a maximum distance I can claim mileage allowance for?
What happens if I use my car for personal errands during a work trip?
Can I claim a mileage allowance if I use a rental car for work?