How does mileage allowance work in Norway?
- 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?
Privately owned normal and electric cars by employees (rate per kilometre in 2024)
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
1. Standard tax calculation for private use of company cars:
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%
2. Discretionary assessment for special cases:
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)
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)
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)
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
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?
- 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 allowance for business trips exceeding specific durations.
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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?
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