November is Half Tax Month
There are many things that are done to prepare for the Christmas season – even the government in Norway gets in on the action. One unusual tradition in Norway is the November tax break. All earnings in November are taxed half the regular amount. As most employers pay wages around the middle of the following month, it means the extra money in November comes in right before Christmas in December. So November is the time when employees make the most of their work hours and might even put in a little over time (very unusual!). The purpose of the tax break is to give Norwegians a Merrier Christmas and a Happier New Year.
by in category Art & Culture, Living
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Towards the water in a beautiful pocket of leafy oak trees is the Byneset Church.
On any celebration table in Norway you can always find a Norwegian layer cake (bløtkake). What better way to celebrate Norwegian Constitution Day than with fresh cream, wild berries and a little bit of sponge in between.
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A popular Summer activity in Norway is kayaking. The coast of Norway is dotted with thousands of little islands making the perfect conditions for a smooth paddle.
The sun never goes down during this season but the mountains to the East are so high that the sun still has to raise above them in the morning hours and an artificial dawn-effect wakes the city.
My husband found your blog a few months ago and we have been reading it regularly. We both are involved in Norwegian heritage things here in the U.S. and we have friends and family living in Norway. We particularly love all the detail about life in Norway from the perspective of a foreigner in your blog. We have learned a ton. The photos, of course, are the best!
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from L-Jay:
Vær så god
Well, the tax in Norway is based on the annual earnings, and you have to pay the same tax if you earn it in November or any other month. It’s usual to pay half tax for your earnings in November, but you actually just pay more the other months. If you work a lot extra in November you might have to pay more tax to the government later, bacause you didn’t pay enough during the year.
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from L-Jay:
Everyone we know in Norway tries to work extra in November because most peoples pay/taxes are done monthly. This means you can work extra in November and not be affected. Those who are on a salary, it’s too bad, but most people in Norway are on wages.
It dosen’t matter if you are on wages, you pay tax after how much you made that year. You pay an amount of money in taxes during the year, and it will be corrected in the spring the nest year, and if you have payed to much or not enough in taxes the year before, you either have to pay the government or they will pay you back some money. You pay tax after every month, out from how much you made, and you usually pay half tax in desember (from what you earned in November), but that’s because you pay extra the other months. I know this 100% since I study a lot of economics and taxes in school. If the people you know work a lot in November bacause of this, they should read some more about it. It only gives them more money in Desember instead of June, when the tax corrections are out.
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from L-Jay:
I think you are missing the point – they might pay more or less tax when everything is evened out in Spring like you said for the previous year but thats ok isn’t it? The point is….
If you work in November you will get that extra money (because only half-tax taken out!) in December. You might pay the extra tax on it later – but for Christmas you have a little more extra cash in hand than usual. It’s like giving you the next months pay in advance so you can use it for Christmas. I’d say that’s not too bad.