Tax breaks for commuters over New Year

carCar in traffic. Photo Norway Today Media.

On January 1, a change is coming that allows commuters to lose an annual deduction of more than NOK 30,000.

Deductions for boarding and lodging for commuters are only granted for a period of 24 months from the time the taxpayer was first granted a deduction for the additional costs, according to the Tax Agency. The 24-month rule came into effect from 1 January 2018.

This means that those who still commute to the same municipality when the year changes to 2020 will lose their deduction.

Financial adviser Espen Øren of the HR company Infotjenester sketches the following calculation in a situation where a worker lives in the Eastland area and commutes to Oslo.

– An average rental price for a bedroom in Oslo is NOK 13,000 a month, according to the Rental Agent. This means that a commuter housing on average will cost NOK 156,000 a year, and the commuter will then lose NOK 34,320 in deductions per year from 2020, he tells NTB.

– This 24-month rule also applies to costs, but it will only apply to those staying in hotels or guesthouses. Those who commute over several years are unlikely to live that way. Most people will probably then live in homes or apartments, says Øren.

The change came in the state budget for 2018.

© NTB Scanpix / #Norway Today


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