Updated: April 2026
Your employee just drove from Oslo to the stunning fjords of Bergen for a business meeting, and now it’s time to calculate the mileage allowance. How do you make sure you’re not overpaying or, worse, undercompensating?
In this guide, we provide the exact rates, tips, and insights you need to ensure accurate reimbursements for mileage allowance in Norway. Let’s make your mileage allowance and car reimbursements as strong and reliable as a Norwegian’s coffee!
How does mileage allowance work in Norway?
Mileage allowance is a reimbursement system that compensates employees for using their private cars for work-related travel.
In Norway, the standard mileage rate is set by the Norwegian Tax Administration and is designed to cover all costs associated with operating a vehicle, like fuel, insurance, depreciation and maintenance.
Here’s a quick overview of how the mileage allowance works in Norway:
Tax-free rate:
Set by the Norwegian Tax Administration (Skatteetaten)
NOK 3.65 (€0.32) 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 5.00 (€0.44) per kilometre for 2026
The difference between the state rate and the tax-free rate (NOK 1.35 or €0.12 per kilometre) is taxable and must be reported by the employer
Employers can choose to reimburse employees based on either the tax-free rate or the state rate, but they must handle the tax implications accordingly. Additional allowances are available for carrying passengers, driving on forest or construction roads, or transporting heavy equipment, each adding NOK 1.00 (€0.088) per kilometre.
What are the mileage allowance rates in Norway for 2026?
Here's a breakdown of the current mileage allowance rates set by the Norwegian Tax Administration (Skatteetaten) for 2026.
Privately owned normal and electric cars by employees (rate per kilometre in 2026)
The standard government mileage allowance rate for 2026 is set at 3.50 NOK (€0.31) per kilometre for both normal cars and electric cars, owned by employees, along with additional rates for special circumstances:
Tax implications for company cars
When employees use a company car, whether owned or leased by the employer, the private use of the vehicle is considered a taxable benefit. This means it's treated as part of your salary for tax purposes.
1. Standard tax calculation for private use of company cars:
This method is the most common and applies to the majority of company cars. The taxable benefit is calculated based on the car's list price when new.
Self-employed individuals in Norway can also claim mileage allowance for business travel, using the same rates as employees.
2. Discretionary assessment for special cases:
In some situations, the standard calculation may not accurately reflect the benefit value derived from the car, either being too high or too low.
Motor boat (rate per kilometre in 2026)
The rate for standard and private use of motor boat is NOK 7.50 (€0.66) per km, along with additional rates for special circumstances:
Snowmobile and ATV (rate per kilometre in 2026)
The rate for snowmobile and ATV is NOK 10.00 (€ 0.88) per km, along with additional rates for special circumstances:
Heavy motorcycle (up to 125 ccm) (rate per kilometre in 2026)
The rate for standard and private use of heavy motorcycles (up to 125 ccm) is NOK 2.95 (€0.26) per km, along with additional rates for special circumstances:
Moped or light motorcycle (up to 125 ccm) and other motorised means of transport
The rate for standard and private use of mopeds and light motorcycles (up to 125 ccm) is NOK 2.00 (€0.18) per km, along with additional rates for special circumstances:
What is not included in the mileage allowance?
Travel allowances are separate and might cover additional expenses incurred during your trip like:
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.
Simplify business travel with Perk!
Between navigating breathtaking fjords and tracking complex mileage rates, expense reports can quickly become the least favourite part of your trip. That’s where Perk comes in.
Perk is your centralised hub for effortless corporate travel. Empower your employees to book flights and hotels within policy while giving managers real-time control. With third-party integrations you can connect with all your favourite expense management tools (like Ramp, Expensify and Spendesk) in a click
Plus, with Green Trip, you’ll be able to keep employees on the road, in the air and on the go knowing you’re offsetting your business travel carbon footprint.
Let Perk manage your business travel so you can explore Norway and beyond—and leave the spreadsheets in the past.
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See how to save your company time and money on business travel.
Frequently asked questions about mileage allowance for Norway
- Yes, if you use your own car for business travel, you can claim the tax-free mileage allowance of NOK 3.50 (€0.31) per kilometre.
- Companies can offer the government rate of NOK 5.00 (€0.44) per kilometre, but you will be taxed on the difference between this and the tax-free rate (NOK 1.50 or €0.13 per kilometre).
- Motorbikes, mopeds, boats, snowmobiles, and ATVs all have their own specific rates. Check with the Norwegian tax authorities (Skatteetaten) for the latest details.
- No, there is no maximum distance limit for claiming mileage allowance in Norway. However, the trip needs to be considered "work-related" to be eligible for reimbursement.
- If you combine business and personal travel in one trip, you can only claim the mileage allowance for the business portion of the journey. It's important to keep clear records to accurately separate the business and personal kilometres.
- Technically, mileage allowance is intended for using your own personal vehicle. However, some companies may have policies that allow claiming actual rental car expenses instead, so it's best to check with your employer for their specific guidelines.
Written by
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Growth Marketing Director
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