Norway's wealth tax is not creditable, and its treaty dates from 1971.
There is a US–Norway income tax treaty and a totalization agreement, both in force. Income tax rates approach 47%, so the foreign tax credit usually beats the exclusion. Norway's net wealth tax is the item to understand: it is charged on assets rather than income, so it is generally not creditable on Form 1116 and is a straight cost on top of US tax.
Tax snapshot — Norway
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Sources: IRS Publication 54; IRS Publication 514; IRS Form 8621 instructions; the 1971 US–Norway income tax treaty; US–Norway totalization agreement; Norwegian income tax, bracket tax, national insurance contribution and net wealth tax; Rev. Proc. 2025-32; 31 CFR 1010.350. Checked 22 September 2026.
What that means on your return
The net wealth tax is charged on assets, not income, which puts it outside the taxes Form 1116 recognises. High-net-worth clients in Norway therefore pay a Norwegian charge that buys no US relief at all.
The treaty dates from 1971 and is one of the older ones still operating. It lacks provisions a modern treaty would carry, so positions available under, say, the UK or Dutch treaty may not exist here.
The bracket tax (trinnskatt) sits on top of the flat national rate. It is an income tax and is creditable; the wealth tax is not. Keeping the two apart is what makes the Form 1116 figure right.
Norwegian pension arrangements and share-savings accounts (ASK) do not carry their local tax treatment into the US return; assume reporting and check for PFIC exposure.
Trygdeavgift, the national insurance contribution, is social security rather than income tax, so it does not go on Form 1116 either. The totalization agreement is what deals with that side, taking the 15.3% US self-employment charge off an American covered in Norway — on a certificate of coverage.
If you are in Norway as a…
Questions I get about Norway
Is the Norwegian wealth tax creditable on my US return?
Generally no. It is charged on net assets rather than on income, so it falls outside the income taxes Form 1116 recognises. Only the income taxes — including the bracket tax — are creditable.
How old is the US–Norway treaty?
It dates from 1971, which makes it one of the older treaties still in force. Positions that rely on modern treaty language may have no basis in it.
Is the national insurance contribution creditable?
No. Trygdeavgift is social security rather than an income tax. The totalization agreement handles that side, and a certificate of coverage is what removes the US self-employment charge.
Is my ASK tax-deferred for US purposes?
No. Norwegian deferral inside a share savings account does not carry to the US return, and the funds held in one are commonly PFICs — which brings Form 8621 and a harsher default calculation.
I already pay high tax in Norway. Do I still file a US return?
Yes, every year. Citizenship-based taxation does not care what you pay locally. The foreign tax credit usually removes the US liability, but the filing obligation stands, and FBAR and FATCA reporting stand with it.
When is my return due?
15 June, under the automatic extension for filers living abroad. Form 4868 moves it to 15 October, and I file the extension free.
Do I have to file an FBAR for my Norwegian bank account?
If your foreign accounts together passed $10,000 at any point in the year, yes. You can file it free through FinCEN's own system. The non-willful penalty for not filing is $16,536.
I have not filed for several years. What now?
The Streamlined Foreign Offshore Procedures: three returns, six FBARs and Form 14653 certifying non-willfulness. Penalties are waived. Note that the IRS terminated the separate Delinquent FBAR Submission Procedures around 1 July 2026.
Filing from Norway this year?
Fifteen minutes with the Enrolled Agent who will prepare and sign it. Complete return, $599.
An IRS Enrolled Agent working only on US tax for Americans living abroad. I prepare and sign every return myself — 14 years in practice, 11 of them as an Enrolled Agent.