Coalition plans annual index adjustment to tax scale

The governing coalition plans to adjust the tax scale annually using a wage index, saying income tax rates have risen in real terms as incomes have grown. The proposal was reported by KVF.

The coalition says the economy has grown strongly for several years, but the graduated income tax scale has not kept pace with rising incomes. As a result, the effective tax burden gradually increases without a decision by parliament.

This can make it harder for the political system to restrain operating costs, the coalition says. It also means the tax system must be reviewed periodically. Annual adjustments would allow politicians to focus more on other important challenges.

A wage index will be published each year by September 1 and used to adjust the tax scale. The index is set at 100 for 2027. For 2028, it will be 100 plus the growth in median income from 2025 to 2026. Median income in 2025 was 445,464 kroner.