Taxable value of farms

If you own a farm at the end of the income year, the farm must be listed with a taxable value in your tax return. 

Here you’ll find information about what you need to do if anything is missing or needs changing.

Taxable value of farms

The taxable value of farms is usually pre-filled in the tax return. The previously assessed taxable value can still be used.

If the Norwegian Parliament, the Storting, decides on an annual adjustment of the taxable value, this will be pre-filled in the tax return. No such adjustment has been adopted for the 2024 income year.

If new buildings have been constructed or upgrades have been made on the farm, you must increase the taxable value. Read about when the taxable value has increased.

The farm must have a total taxable value for all the buildings, rights, farmland, and plots of land that belong to the property.

Forest property must have its own taxable value. Forest that is only sufficient to cover the farm’s requirements for fuel, fencing, and minor reparations, must be valued together with the farm. 

Does this apply to me?

This applies to you if you own a farm.

Initial valuation of the taxable value

The farm must have a total taxable value. The taxable value is calculated using different rates based on the cost price or market value of the farmhouse and the remaining other parts of the property. The taxable value of the farmhouse and the taxable value of the remaining other parts of the property is then added to a total taxable value for the entire farm.

Rates for initial valuation in the 2024 income year:

  • the taxable value of the farmhouse is set to 30 percent of the cost price or market value
  • the taxable value of the remaining other parts of the property, such as farmland, forest for personal use, retired farmer’s cottage, other buildings and similar, at 80 percent of the cost price or market value

Farms are entitled to a valuation discount as fixed asset. For the 2024 income year, this discount is set at 30 percent. The valuation discount is calculated automatically in the tax return.

You own a farm where the market value of the farmhouse is NOK 3,000,000 and the market value of the remaining parts of the farm is NOK 10,000,000.

  • The taxable value of the farmhouse is NOK 900,000.
    (3,000,000 * 30/100= 900,000).
  • The taxable value of the remaining parts of the farm is NOK 8,000,000.
    (10,000,000 x 80/100= 8,000,000).
  • The total taxable value is NOK 8,900,000.
  • The farm is considered a fixed asset with a valuation discount of 30 percent.

The taxable value calculated in the tax return is:
NOK 6,230,000 (8,900,000 - 30/100 = 6,230,000).

What you need to do

Check if the farm you own is included in your tax return and that the taxable value for the property is correct.

Check if the farm you own is included in your tax deduction card.

  • If the farm is missing or the taxable value is incorrect, you can log in to the tax deduction cardand correct this.
  • If you’re not the owner of the property, you can remove the property from your tax deduction card.

The changes you make to your tax deduction card only apply to this year’s tax deduction card and will not be pre-filled in your tax return.

Special information when

The registration ensures legal protection for you as the owner. This means that no one can place an attachment on your property or sell it without a legal basis. You’re not obliged to register the property.

If you register a change of ownership with the Norwegian Mapping Authority, the Tax Administration will automatically receive information about the registered ownership and can pre-fill the property in the correct owner’s tax return.

If you do not register the change of ownership

If you do not register the change of ownership, you must send us proof of the ownership.

The proof must include the following information:

  • which property you’re referring to
  • from which date the ownership applies
  • the price that was paid for the property, if any 
  • the date and signature of all parties 

You can submit the proof as soon as the sale or transfer has taken place. You can also log in to the tax return, change the ownership and add proof.

If the farm has increased in value as the result of, for example, new construction or substantial upgrades, or purchase of property, the taxable value of the farm must be increased.

You must log in to the tax return and enter the value of the upgrade.

Example: If you have a farm and upgrade the agricultural buildings with NOK 1,000,000, the previously assessed taxable value must be increased by 80 percent of the upgrade, this means NOK 800,000 (1,000,000 * 80/100 = 800,000).

In addition, a valuation disount for fixed asset is granted with 30 percent, this means that the total taxable value shown in the tax return has been increased by NOK 560,000 (800,000 * 30/100 = 560,000).

You can reduce the taxable value of the farmhouse if the taxable value exceeds 30 percent of the house’s documented market value. If you use a valuation, the entire property must be valued collectively before the value is allocated to the farmhouse and the remaining parts of the property. An individual valuation of the residential property will not be decisive.

You can reduce the taxable value of the remaining parts of the property if the taxable value exceeds 80 percent of the property’s cost price or 80 percent of the property’s market value. If you use a valuation, the entire property must be valued collectively before the value is allocated to the farmhouse and the remaining parts of the property. The taxable value for the remaining parts of the property is not affected by a possible reduction in the taxable value of the farmhouse.

You can reduce the taxable value of the agricultural property after an individual assessment, if the taxable value is significantly above the level of comparable properties elsewhere in the municipality.

To reduce the value of the farm, you must log in to the tax return and enter the correct value.  You do not need to send us proof for this, but you must be able to provide supporting documents if we ask you to.

If parts of the farm are used for other income-generating activity, a concrete assessment must be made of whether this part of the property is part of the farm or should have its own taxable value.

Example:
You have a building on your farm that is not used for agricultural purposes. The building is used for selling agricultural machinery. The building must have its own taxable value in the tax return. You must enter the building as a commercial property in the tax return and add the necessary information. The taxable value is calculated automatically.

Taxable value of commercial properties.

Natural deposits, such as gravel, are valued together with the farm. If you carry out independent business activity related to the natural deposit, it must have its own taxable value. This applies regardless of whether you or someone else carries out the activity.

If you carry out independent business activity related to the natural deposit

You must enter a separate taxable value for this part of the property in the tax return. You must add a property with the same cadastral and property unit number. You select the property type "Other real property" and enter the market value. The taxable value is calculated automatically.

When clearing plots of land, an individual assessment must be made of whether the plots of land should count as part of the farm. As long as the work to establish the plots of land is at an early stage, the plots of land are valued as part of the farm. As the infrastructure for the plots of land is being established, the plots of land must have their own taxable value.

If a plot of land is no longer to be considered part of the farm, you must enter the plot of land in the tax return and state its market value. The taxable value is calculated automatically. 

Taxable value of plots of land and leased plots of land.

As the landowner, you’re not liable to pay net wealth tax on the value of the plot of land, but on the capitalised value of the right to annual ground rent. 

You must log in to the tax return and enter the value of the capitalised ground rent.

When you are a landowner and rent plots of land for residential properties or holiday homes.