The Norwegian Government’s National Budget for 2026 proposes a reduction and eventual removal of the VAT exemption for electric vehicles.
Key measures:
- Reduced VAT exemption threshold: The VAT exemption amount for electric cars will decrease from NOK 500,000 to NOK 300,000 starting in 2026.
- Full removal in 2027: The VAT exemption will be eliminated entirely from 2027.
- Tax impact: Electric cars priced above NOK 500,000 will see a tax increase of NOK 50,000, while lower-priced vehicles will experience smaller increases. The change will also apply to vehicles ordered before but delivered in 2026.
- Increased tax on fossil-fuel cars: The one-off registration tax for fossil-fuel passenger cars will increase by NOK 20,000–30,000, maintaining incentives for zero-emission vehicle purchases.
According to Minister of Finance Jens Stoltenberg, with 95 percent of new passenger cars being electric in 2025, the original target for full electrification has been practically achieved, allowing the government to phase out support measures.
The reform aligns with broader fiscal goals to rebalance environmental incentives and tax priorities while maintaining Norway’s strong electric vehicle adoption rate above 90 percent.
Source: regjeringen.no