Lower taxation on electric vehicle companies starting in 2027
– It’s a clear improvement for many members of the Electric Vehicle Association, says secretary general Christina Bu.
08.10.2026 07:02 | Updated 12:29
The proposal is largely in line with the one submitted for public consultation earlier this summer.
The government proposes in the state budget that starting in 2027, electric vehicles will be considered to have lower operating costs than those powered by fossil fuels, something the Electric Vehicle Association has been advocating for.
A fairer taxation system for electric vehicle owners
The Electric Vehicle Association is therefore pleased that the government is now proposing new tax rules for electric vehicles.
– The authorities’ proposal is a clear improvement, says Christina Bu, secretary general of the Electric Vehicle Association.
She points out that the proposal will result in significantly lower taxes for business users who have chosen electric vehicles:
For example, a Skoda Enyaq with a list price of 550,000 kroner will receive a tax discount of 147,030 kroner under current rules. Starting in 2027, it will instead get a discount of 126,200 kroner.
This amount is added to the income reported on the tax return. If one’s total income amounts to 800,000 kroner, the tax reduction will be around 9,300 kroner.
“It’s a positive development for something we’ve been working on for a long time. Many members of the Electric Vehicle Association have contacted us and provided us with solid data on their vehicle ownership. This gives us strong, evidence-based arguments when dealing with this issue politically,” says Christina Bu.
The state budget proposal has not yet been approved. The Storting will vote on the state budget in December, and only then will majority discussions begin.
This is tax on company cars
If you have a company car that is also used privately, you pay additional tax for the benefit of having your employer cover fuel, maintenance, insurance, and other costs related to owning the car.
In recent years, the rules for company car tax have remained the same, regardless of whether the company car is a fossil fuel vehicle or an electric vehicle. This is despite the fact that the ownership costs for a fossil fuel vehicle are significantly higher than those for an electric vehicle, mainly because fuel is more expensive.
While the tax has so far been calculated based on the car’s list price, it is proposed that starting in 2027, the tax will be calculated from two components:
a car price component based on the list price as new
a cost component depending on the engine type
There is a so-called cost component that the government believes should be lower for electric vehicles compared to fossil fuel vehicles.
It All Began with Electric Vehicle Driver and Business User Emil Lysø
In a series of articles, elbil.no has covered electric vehicle driver and business user Emil Lysø.
He works as a salesperson at Coca-Cola, one of the companies that has long invested in electric vehicles. His employer strongly wanted him and the other salespeople to use electric vehicles for business, which they did. This gradually led to a significant tax increase. Many other business vehicle users experienced the same thing.
Emil Lysø documented that his actual vehicle costs were much lower than what the tax authorities’ regulations suggested, and he complained to the Tax Authority. He received assistance from the Norwegian Automobile Industry Association and Jan Traaseth during this process.
200 Members of the Electric Vehicle Association Got in Touch
Complaints arose in the first round, leading to the Electric Vehicle Association receiving over 200 member complaints about the same issue.
The association’s calculations based on members’ examples showed that electric vehicle drivers using company vehicles typically paid 25,000 kroner in excessive taxes.
But suddenly, the Tax Authority reversed its decision regarding Lysø and reverted to the old practice.
In collaboration with the Norwegian Automobile Industry Association (NBF) and the labor union Negotia, the Electric Vehicle Association contacted lawmakers in the Storting, who urged the government to review the tax rules.
And the Storting promptly did just that. In May 2025, the Progress Party submitted a proposal in the Storting to review the tax.
“There’s no doubt that many are being taxed at a much higher rate than intended,” said Storting representative Morten Stordalen from the Progress Party at the time.
The Storting unanimously agreed that it was time to review the tax, and it is this decision that the government has now incorporated into its proposed state budget.
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