Company car for ENK 2026
In a sole proprietorship a car is not taxed as a classic company car – you choose between a private car in business with a mileage deduction and a business car entered in the accounts. Here you see which is better, and compare the two options with the calculator.
Short answer: not like a limited company. A sole proprietorship does not have a "company car" the way a limited company does, because you as the owner are not an employee of your own enterprise.
In practice you choose between two models:
Typical for business driving under 6,000 km per year.
Relevant at over 6,000 km per year in business, or over 50% business use.
Low, occasional driving often fits best as a private car in business. A lot of driving, or a car used mainly in the enterprise, can point towards a business car – but then documentation and private use become more important.
Compare a private car in business (mileage deduction) against a business car entered in the enterprise (actual costs and benefit taxation). Enter your figures to see which arrangement normally applies and what it means for tax.
Enter your figures. The calculator first shows which car arrangement normally applies, then estimates the annual tax effect of each. Figures for the 2026 income year.
Private car in business
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Business car — net effect (estimate)
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Arrangement: the car normally counts as a business car if you drive over 6,000 business kilometres a year or use it over 50% in business. Otherwise it's a private car in business. The 6,000 km limit is assessed as an average over several years.
Private car in business: 3.50 kr × business kilometres (2026 rate, also applies to EVs). The rate covers all car costs — you don't deduct actual costs on top.
Business car, net effect: declining-balance depreciation (20% of the car's value, balance group D) + actual running costs − benefit taxation for private use. Benefit under the standard rule: 30% of the list price up to 370,300 kr + 20% of the excess (2026).
Individual method (3.40 kr/km): applies only to a class-2 van / small truck under 7,501 kg with a work-related need and an electronic logbook — not an ordinary passenger car.
An estimate, not tax advice. Rates for the 2026 income year, verified against Skatteetaten and Lovdata. When in doubt, consult an accountant.
Without documentation, both the mileage deduction and the split between private and business use are weaker. Record the date, purpose and distance for business driving.
If the car is used mainly privately, a private car in business is often simpler. If the car is used a lot in the enterprise, you must consider a business car and benefit taxation.
Car type, use, VAT and private benefit must be assessed specifically. The standard-rule benefit can easily outweigh the gain from a business car.
Last verified against official sources: June 2026. The rates and rules have been checked against official sources.
The rules for cars in business are complex and depend on actual use. Check Skatteetaten or an accountant before making major decisions.
"Company car" is the common term for a car made available by an employer, as a limited company (AS) can do for an employee. In a sole proprietorship you are not an employee, so the relevant distinction is between a private car in business (the car is owned privately, and the business gets a mileage deduction) and a business car (the car is entered in the accounts with actual costs, and private use is benefit-taxed).
Not in the same way as in a limited company. In a sole proprietorship you as the owner are not an employee, so you do not get classic company-car taxation as an employee. You normally choose between a private car in business with a mileage deduction or a business car entered in the enterprise.
If you choose a business car entered in the enterprise, actual car costs are recorded in the accounts, while private use is added as a taxable benefit calculated from the car’s list price. If you choose a private car in business, the car is not taxed as a benefit – instead the business gets a mileage deduction for documented business driving. See the rates and the standard rule in the content above.
Yes, you can enter the car as a business car in the enterprise when it is used sufficiently in business. Then the car costs are recorded in the accounts and the car is depreciated, but private use is benefit-taxed. If the car is used mostly privately, a private car in business with a mileage deduction is often simpler. The conditions depend on actual use – see the sections above.
It depends on how much you drive in business, the type of car and the running costs. Low, occasional business driving often fits best as a private car in business with a mileage deduction, while a lot of driving can point towards a business car – but then documentation and benefit taxation of private use become more important. A detailed comparison of the two options must be worked out specifically for your car and use.
The car normally counts as a business car when you drive over 6,000 km in business per year, or when the car is used over 50% in business. Then actual car costs are recorded in the accounts, and private use is benefit-taxed.
The mileage deduction for a private car in business is 3.50 kr per kilometre in 2026. You must be able to document the business driving, normally with a logbook.
It depends on how much you drive in business and how much the car is used privately. If you drive under 6,000 business kilometres a year (or use the car under 50% in business), you keep the car privately and get a deduction of 3.50 kr per business kilometre (2026). Above that, the car counts as a business car: the enterprise records actual costs and declining-balance depreciation, but you are benefit-taxed for private use under the standard rule (30% of the list price up to 370,300 kr + 20% above). For an ordinary passenger car with some private driving, the benefit taxation often eats up the gain, so low, occasional driving fits best as a private car. Use the calculator above for an estimate with your own figures.
Explore other tools for Norwegian sole proprietorships.