Norway Sole Proprietorship Tax Calculator 2026 (ENK)

A sole proprietorship (enkeltpersonforetak, ENK) is the simplest way to run a business in Norway. You and the business are the same legal entity, so you are personally responsible for its debts, and the profit is taxed as your own income. This calculator shows the tax on a business profit in 2026: income tax, the national insurance contribution (trygdeavgift) and bracket tax (trinnskatt). It also compares the result with an employee who is paid the same amount.

How the tax is calculated

Three parts are added together, all based on the profit of the business:

• Income tax: 22% of your ordinary income, which is the profit minus the personal allowance (personfradrag) of NOK 114,540.
• National insurance contribution: 10.8% of the profit. No contribution is due at or below NOK 99,650, and it never exceeds 25% of the income above that limit.
• Bracket tax: a progressive tax on personal income, in five steps from 1.7% to 17.8%.

Worked example: a profit of NOK 600,000

Ordinary income is NOK 600,000 minus NOK 114,540 = NOK 485,460, and 22% of that is NOK 106,801. The national insurance contribution is NOK 600,000 x 10.8% = NOK 64,800. Bracket tax is NOK 12,835. The total tax is NOK 184,437, an effective rate of 30.7%, and you are left with NOK 415,563. An employee with the same pay would keep NOK 455,817, because an employee gets the minimum standard deduction and pays a lower contribution.

Tax at different profit levels

Why sole proprietors pay more than employees

There are two reasons. First, the contribution is 10.8% instead of 7.6%, because there is no employer who pays employer's contributions on your income. Second, the minimum standard deduction (46% of pay, up to NOK 95,700) is only for salary and pensions, so you can deduct only the actual costs of the business. Employees also have the employer's contribution paid on top of their pay, so the real cost of an employee to the employer is higher than the pay itself. The comparison here therefore shows the tax burden on the person, not the full picture.

Practical points for new business owners

• One tax return: you file one return with both your personal information and the business information, by 31 May each year.
• Advance tax: you pay it yourself in four instalments during the year. Setting aside about 40% of the profit is a common guideline.
• VAT: registration is required above NOK 50,000 of taxable sales in 12 months. See the Norway VAT calculator.
• Sick pay: from day 17 at 80% of your income unless you buy insurance. See the Norway sick pay calculator.
• Pension rights: the contribution earns pension points and the right to sickness benefit, so a low reported income lowers your future benefits. Read more in the national insurance contribution calculator.

If you are new to Norway

A tax resident sole proprietor is taxed on worldwide income. Check the Norway tax residency calculator if you are not sure whether you are resident. For the tax on ordinary employment income, use the Norway income tax calculator. If you pay yourself dividends from a limited company instead, see the Norway dividend tax calculator.

What this calculator does not cover

It assumes the business profit is your only income and that only the personal allowance is deducted. It does not include the risk-free return deduction, other income or deductions, the reduced income tax rate in the northern Norway zone, depreciation or the choice between a sole proprietorship and a limited company. Personal income and business income can differ, for example because of capital gains or interest costs. The result is an estimate and not tax advice.