Qualifying income

We use you gross income (before tax) in the month for which you are applying. We get information about some of your income automatically, but there are other income sources that you must tell us about yourself.

These kinds of income are included in your qualifying income:

  • Gross taxable income received in the month that you apply
  • Income on capital exceeding NOK 5,412 this year (per person)
  • Business income this year
  • Foreign income this year
  • Monthly tax-free rental income
  • Wealth adjustment
  • These kinds of income are not included in your qualifying income:

Income and wealth of children under the age of 18

  • Child benefits
  • Child support payments
  • Cash-for-care benefits
  • Lump-sum grants for maternity or adoption
  • Child care benefit for working single parents
  • Basic benefit and attendance benefit
  • Social assistance
  • Taxes

Each month the Norwegian Tax Administration provides us with details of your income from employers, NAV or other sources. You must tell us about any other income and your net wealth yourself. If you don’t report anything, we will use the information from your last available tax assessment. You annual income will be converted into a monthly figure.

What does is monthly income?

Each month, employers, NAV and other entities report the gross income they have paid during the previous month to the Norwegian Tax Administration. The Housing Bank obtains and uses this information to help calculate your qualifying income. The types of income reported include wages/salary, benefits, grants, pensions, payments in arrears and holiday pay. 

What is income from capital?

Income from capital includes interest income, dividends from shares and investment funds, and profit on renting out or selling property. Only income from capital exceeding NOK 5,421 per person counts towards your qualifying income. 

What is income from self-employment?

Personal income from self-employment is considered income. Your annual income from self-employment is split over 12 months. 

What is foreign income?

Foreign income includes wages/salary, pensions and other income from abroad – regardless of where you pay tax on the income.

Net wealth and wealth adjustment

If you have high net wealth, a wealth adjustment may be applied to your income. Net wealth is gross assets less debt. Gross assets may include bank deposits, the tax value of your home or other property, cars, shares and other possessions. Debt may include mortgages, student loans and other debt. If you (or the other parent) have high wealth because you pay tax on behalf of a child with wealth, you can ask us to deduct the child’s wealth from your net wealth. The wealth adjustment is calculated as follows:

  • Net wealth less wealth threshold x 65% = annual wealth adjustment 
  • If you live in a rental property the wealth threshold for net wealth is NOK 271,049. If you own your own home, the wealth threshold is up to NOK 569,202 of the tax value of your main home. If your net wealth exceeds the wealth thresholds, 65 percent of your wealth above the threshold is added to your income as a wealth adjustment (converted into a monthly amount).

Examples of how the wealth adjustment is calculated if you live in a rental property:

  • Your net wealth is NOK 750,000 
    NOK 750,000 minus NOK 271,049 = NOK 478,951 x 65% = NOK 311,318
    Wealth adjustment per month: NOK 311,318 ÷ 12 = NOK 25,943

  • Your net wealth is NOK 300,000
    NOK 300,000 minus NOK 271,049 = NOK 28,959 x 65% = NOK 18,823 
    Wealth adjustment per month: NOK 18,823 ÷ 12 = NOK 1,568 per month

Examples of how the Wealth adjustment is calculated if you live in your own home, a jointly owned property, or a flat in a housing cooperative or housing company:

  • Your net wealth is NOK 1,000,000, including NOK 800,000 for your main home
    NOK 1,000,000 minus NOK 569,202 = NOK 430,798 x 65 % = NOK 280,018 per year
    Wealth adjustment per month: NOK 280,018 ÷ 12 = NOK 23,334 

  • Your net wealth is NOK 580,000, including NOK 460,000 for your main home
    NOK 580,000 minus NOK 460,000 = NOK 120,000 x 65% = NOK 78,000
    Wealth adjustment per month: NOK 78,000 ÷ 12 = NOK 6,500 per month

Tax-free rental income

If you have any tax-free rental income you must tell us. Tax-free rental income may be income from renting out a room in your own home or renting out a basement flat or equivalent.