Motor Insurance tax

What does this imply?

All registered vehicles below 7 500 kilos must pay motor insurance tax and have liability insurance (motor insurance). For heavier vehicles, the weight-bearing tax is still required by the Norwegian Tax Administration.

The motor insurance tax is payable only when the vehicle is insured and is collected along with the insurance premium. The insurance companies will claim the motor insurance tax at the same time as the premium, and the tax will thus be divided in the same way as premium payments: monthly, quarterly, half year or full year.

The motor insurance tax is the same regardless of which insurance company you use. The tax will be specified on the invoice with its own line item labeled Motor Insurance Tax to the authorities.

It is the owner’s responsibility to insure the vehicle, and the tax is payable for the period the owner has the vehicle registered.

• If the vehicle is sold, a new owner must insure the vehicle and pay the motor insurance tax
• No motor insurance tax shall be paid for deregistered or wrecked vehicles

For registered vehicles, not in use or not in drivable condition, you must either pay motor insurance tax and mandatory motor liability insurance (MTPL) or deregister the vehicle.

For the vehicle owners, the shift to a motor insurance tax provides many advantages:

• The tax can be distributed throughout the year
• You only need the invoice from the insurance company, which collects this tax on behalf of the authorities
• When the vehicle is sold, you only have to pay for the time you owned the vehicle
• You don’t pay the tax if the vehicle is deregistered

The amount is calculated from a daily rate multiplied by the number of days the vehicle is insured. In the table below you will find the daily rates for the motor insurance tax. The rates are adjusted yearly by Parliament. 

Background for the change to motor insurance tax

The purpose is to simplify and streamline tax administration and provide better flexibility.

So far, it has been the annual road tax that has accounted for the highest administrative cost among the special taxes for the authorities. By requiring insurance companies to levy the tax together with the mandatory MTPL, the authorities will avoid sending invoices to everyone registered as a vehicle owner.

The motor insurance tax also allows for better flexibility when purchasing a new car, change in ownership, deregistration etc, because the owner of the vehicle will be charged only for the time the vehicle is insured.