Hiring out of vehicles and other items

When you also use your item and/or vehicle privately, and the gross rental income does not exceed NOK 10,000 during the year, you will not have to pay tax on your rental income. If the rental income exceeds NOK 10,000, the income must be declared in your tax return in its entirety, that is, from the first krone. It makes no difference whether you rent out items privately or through an intermediary (an app or online service such as nabobil.no).

See the Directorate of Taxes’ statement of principles concerning tax liability in connection with the leasing of vehicles mediated via an online marketplace for more information (in Norwegian only).

Rate-based deductions

Costs incurred in connection with the car hire may be deducted from taxable rental income. Since costs associated with the private use of the vehicle are not deductible, the costs must be allocated so that only the proportion of the costs linked to the hiring out of the vehicle will be deducted.

To simplify the process, section 1-3-20 of the Regulations on the valuation of capital, income and deduction items, etc. (the 2024 valuation rules) sets out rules concerning deduction relating to the use of vehicles for business use. According to this provision, a “deduction is given for business use at the rate of NOK 3.50 per km (...) for a vehicle which is not taxed as a company car.” This deduction rate is based on the assumption that the taxpayer covers all costs associated with upkeep of the vehicle, including fuel. The rate does not apply in cases where the person renting the car covers fuel costs in addition to the rental charge.

The Directorate of Taxes has concluded that the rate may be used for the 2024 income year, but with a reduction in cases where the person renting the car pays for the fuel. In these cases, the rate must be reduced to NOK 2.80 per km. The same percentual reduction (that is, 20 percent) of the ordinary rate must also be applied in cases involving the hiring out of other means of transport where the lessee covers the cost of fuel. Ordinary rates for other means of transport are set out in section 1-3-20 of the valuation rules.

If you rent out your car, you enter the deduction according to a rate, unless the car is considered a commercial vehicle. If the person you rent the car to (lessee) has covered the cost of fuel, you should use a rate of NOK 2.80 per km that the lessee has driven your car. 

In addition to the standard deduction for car expenses, you can also claim a deduction for what it costs to market what you want to rent out. The expenses relating to marketing can be deducted from the gross rental income. This means it is the profit from your rental activity that must be entered as capital income in your tax return.  

As long as the gross rental income exceeds NOK 10,000, the income must be reported in the tax return. This applies even if you have expenses that make the net rental income lower than NOK 10,000. 

How do I enter this in my tax return?

You must declare your rental income as capital income if the gross rental income exceeds NOK 10,000. You must list the income in your tax return under the topic Other income - Other capital income received outside of an employment relationship and business activity. It’s the net rental income that should be reported in your tax return.

You can claim a deduction for expenses you’ve had for marketing your rental objects.

Example: You rent out your car for NOK 15,000, and the lessee pays for the fuel themselves. The car was driven 1,000 km during the rental period. The deduction from the rental income will be NOK 2,800 (1,000 km x NOK 2.80). This means that you should report NOK 12,200 (15,000 – 2,800) as net rental income in your tax return.

Documentation

You do not need to send us documentation for this, but you must be able to provide documentation if we ask.