Individual income tax in Turkey is governed by Income Tax Law No. 193. Residents are taxed on worldwide income; non-residents are taxed only on Turkish-source income. Residence turns on domicile or on staying in Turkey for more than six months in a calendar year, subject to the exceptions in Article 5. For 2026 the rates run from 15% to 40%, with the top rate applying above TRY 5,300,000. Most employees never file a return because tax is withheld at source, but a return becomes necessary once income falls outside withholding or crosses the thresholds set each year — for 2026, TRY 400,000 for withheld investment and rental income and for wages from more than one employer.
Income tax in Turkey is charged under a single statute covering seven categories of income, each with its own rules on how the tax base is calculated and whether tax is collected at source or by annual return. A foreign national working in Turkey, a non-resident renting out an apartment and a self-employed consultant invoicing from abroad are all inside the same law, yet reach very different filing outcomes.
This guide sets out who is liable to income tax in Turkey, what is taxable, the rates and thresholds published for 2026 in Income Tax General Communiqué No. 332, and the filing calendar that follows from them. The consolidated text of Law No. 193 is published on the official legislation portal, the communiqué in the Official Gazette, and current forms and guidance are issued by the Revenue Administration.
alt=”Income tax in Turkey: 2026 rate brackets, exemption thresholds and filing deadlines” width=”1200″ height=”675″ loading=”lazy”>Who is liable to income tax in Turkey?
Article 3 of the Income Tax Law divides individuals into two categories. Full liability covers worldwide income. Limited liability covers only income sourced in Turkey, as defined in Article 7.
The six-month test counts days of presence in a single calendar year, not a rolling twelve-month period. Article 5 removes from the count individuals who come to Turkey for a specific and defined assignment, for study, medical treatment, rest or travel, even where the stay exceeds six months. Where a treaty applies and both states would treat the same person as resident, the tie-breaker in the treaty decides.
Which categories of income are subject to income tax in Turkey?
Article 2 lists seven categories. The category determines how the tax base is computed, whether tax is withheld at source and whether an annual return is required.
Business income
Profits of sole traders and partners in ordinary partnerships. Advance tax is paid quarterly and an annual return is filed.
Agricultural income
Profits from farming activity, with separate rules for taxpayers below the statutory operating thresholds.
Employment income
Salary, bonus, benefits in kind and directors’ attendance fees. Tax is withheld monthly by the employer against a cumulative base.
Professional income
Income of independent professionals. Payments by companies carry 20% withholding, credited against the annual liability.
Immovable property income
Rental income. Commercial leases paid by a company carry 20% withholding; residential rent paid by an individual tenant carries none.
Investment income
Dividends, interest and similar returns. Most Turkish-source items are taxed by final withholding.
Other income and gains
Capital gains and incidental income, each with its own annual exemption.
What are the income tax rates in Turkey for 2026?
Income tax in Turkey follows two versions of the same progressive scale: one for employment income and one for all other income. The first two brackets are identical; the scales diverge in the third bracket, which is wider for employment income. The 2026 figures were set by Income Tax General Communiqué No. 332, published on 31 December 2025, using the 25.49% revaluation rate.
Employment income, 2026
| Taxable income (TRY) | Tax on lower amount (TRY) | Rate on excess |
|---|---|---|
| 0 – 190,000 | – | 15% |
| 190,000 – 400,000 | 28,500 | 20% |
| 400,000 – 1,500,000 | 70,500 | 27% |
| 1,500,000 – 5,300,000 | 367,500 | 35% |
| Over 5,300,000 | 1,697,500 | 40% |
All other income, 2026
| Taxable income (TRY) | Tax on lower amount (TRY) | Rate on excess |
|---|---|---|
| 0 – 190,000 | – | 15% |
| 190,000 – 400,000 | 28,500 | 20% |
| 400,000 – 1,000,000 | 70,500 | 27% |
| 1,000,000 – 5,300,000 | 232,500 | 35% |
| Over 5,300,000 | 1,737,500 | 40% |
Employment tax is calculated on a cumulative basis through the year. An employee whose monthly taxable base is stable moves into higher brackets as the year progresses, so the net salary in December is lower than in January for the same gross figure. Employers and employees should plan cash flow around this rather than treat the January net as the annual norm.
Which income tax exemptions and thresholds apply in 2026?
The minimum wage exemption in Article 23(18) applies to every employee, not only to those paid at the minimum. The portion of any salary equal to the minimum wage base is exempt from income tax and stamp duty, which for 2026 removes TRY 4,211.33 of income tax and TRY 250.70 of stamp duty from each monthly payroll. Where an employee has more than one employer, the exemption is applied only to the highest salary, and the employee is responsible for telling the other employers.
Three further reliefs are worth noting because they are frequently missed:
Foreign currency salaries paid from abroad
Article 23(14) exempts salaries paid in foreign currency, out of earnings generated abroad, by an employer whose legal and business centre is outside Turkey, to staff working for that employer in Turkey. Liaison office employees are the standard case, and the conditions are read strictly.
Young entrepreneur exemption
Up to TRY 400,000 of business, agricultural or professional income for 2026 is exempt for taxpayers who begin their first activity before the age of 29, for three tax periods, subject to registration and management conditions.
Compliant taxpayer discount
A 5% reduction of the tax calculated on the annual return, capped at TRY 12,000,000 for returns filed from 1 January 2026, for taxpayers with a clean filing and payment record over the qualifying period.
Who has to file an annual income tax return in Turkey?
Turkey collects most individual tax through withholding, and Article 86 then removes a large part of that income from the return. The practical question is whether a specific item crosses a threshold or falls outside withholding altogether.
| Situation | 2026 threshold | Outcome |
|---|---|---|
| Salary from a single employer, taxed at source | TRY 5,300,000 | Return required only if the annual salary exceeds the threshold |
| Salary from more than one employer | TRY 400,000 | Return required if salaries other than the highest exceed the threshold in total, or if total salary exceeds TRY 5,300,000 |
| Rental or investment income taxed at source | TRY 400,000 | Return required if the gross total exceeds the threshold |
| Rental or investment income outside withholding and outside any exemption | TRY 22,000 | Return required above the threshold; this catches foreign interest and dividends received by residents |
| Residential rental income | TRY 58,000 | Exempt up to the threshold, provided the landlord has no other income requiring a return above the fourth bracket amount |
| Business, agricultural or professional income | No threshold | Return required in every case, including loss years |
| Non-resident with only Turkish-source income taxed at source | Not applicable | No annual return. Non-withheld Turkish-source income is declared on a special return within 15 days |
Residents are taxed on foreign income as well. Foreign salary, rent, interest and dividends enter the Turkish return even where tax has already been paid abroad, with a credit for the foreign tax under Article 123 limited to the Turkish tax attributable to that income. The absence of a Turkish payment or a Turkish bank account does not remove the obligation.
Income tax filing and payment calendar in Turkey
- Quarterly advance taxTaxpayers with business, agricultural or professional income file three advance tax returns a year, by the 17th of the second month following each quarter, at the 15% first-bracket rate. Advance tax paid is credited against the annual liability.
- Monthly withholding returnsEmployers and other withholding agents file by the 26th of the following month. This is the return through which salary tax, professional fee withholding and commercial rent withholding are paid.
- Annual return, MarchThe annual income tax return covers the preceding calendar year. Article 92 sets the deadline at 25 March, and the Ministry has extended it to the end of March in recent years, so the practical date to plan for is 31 March with the statutory date as the fallback.
- Payment in two instalmentsTax assessed on the annual return is paid in two equal instalments under Article 117, the first by the end of March and the second by the end of July.
- Departure and deathAn individual leaving Turkey permanently files within the 15 days before departure. In the case of death, the heirs file within four months.
Where do foreign nationals and foreign employers run into difficulty?
Working in Turkey for a foreign payroll
Salary paid by a foreign entity to someone working in Turkey is not automatically outside the Turkish system. Where the Article 23(14) conditions are not met in full, the individual is liable and, in the absence of a withholding agent, must register and file.
The six-month test crossed unintentionally
Assignments extended in stages can pass six months in a calendar year without anyone recalculating. The consequence is retrospective worldwide taxation for that year, not a change from the date the threshold was crossed.
Residential rent treated as tax-free
The exemption applies once per landlord, not per property, and is lost entirely where rent is not declared or where the landlord’s other income exceeds the fourth bracket amount.
Rent paid in cash
Residential rent above the statutory limit and all commercial rent must be paid through a bank or postal institution. Payment outside the banking system attracts a special irregularity penalty even where the income is declared.
Foreign investment income overlooked
Interest and dividends held in an account abroad are taxable for a resident once they exceed TRY 22,000 for 2026. Automatic exchange of financial account information means the absence of a Turkish paper trail is not a practical shield.
Two employers, one exemption
Where an employee holds concurrent employments, the minimum wage exemption applied twice produces an underpayment recovered from the employee on the annual return, together with interest.
What reduces the tax base on the annual return?
Article 89 allows a defined list of deductions from declared income, applied in the order set out in the law and only against a positive base:
- Personal insurance premiums, within 15% of declared income and the annual minimum wage
- Education and health expenses incurred in Turkey and evidenced by invoice, within 10% of declared income
- Donations to bodies listed in the law, generally within 5% of declared income, with full deduction for specified projects
- Research and development expenditure and certain sponsorship expenses
- Income from services rendered from Turkey to non-resident clients in listed sectors, at 80% of the profit, subject to the transfer of the earnings to Turkey
Personal allowances of the kind found in some jurisdictions do not exist. The minimum wage exemption performs a comparable function for employment income, and there is no equivalent for other categories.
Frequently asked questions about income tax in Turkey
What is the income tax rate in Turkey for 2026?
Rates run from 15% to 40% on a progressive scale. For employment income the brackets are TRY 190,000, TRY 400,000, TRY 1,500,000 and TRY 5,300,000. For all other income the third threshold is TRY 1,000,000 instead of TRY 1,500,000. The 40% rate applies above TRY 5,300,000 in both scales.
When does a foreigner become a tax resident in Turkey?
On establishing a domicile in Turkey, or on being present in Turkey for more than six months in a single calendar year. Article 5 excludes stays for a defined assignment, study, medical treatment, rest or travel from the six-month count. Where the individual would also be resident in another treaty state, the treaty tie-breaker decides which state has primary taxing rights.
Do employees in Turkey file an income tax return?
Usually not. Tax on salary is withheld monthly by the employer and that settles the liability. A return becomes necessary where annual salary from a single employer exceeds TRY 5,300,000 for 2026, where salaries from employers other than the highest exceed TRY 400,000 in total, or where the employee has other income above the applicable threshold.
How is rental income taxed in Turkey?
Residential rental income is exempt up to TRY 58,000 for 2026, with the excess declared on the annual return. Commercial rent paid by a company is subject to 20% withholding, and a return is required if gross rent exceeds TRY 400,000. Expenses are deducted either on an actual basis with supporting documents or on a lump-sum basis at 15% of gross rent, which is not available for leasehold rights and cannot be changed for two years once chosen.
Is foreign income taxable in Turkey?
For a resident, yes. Worldwide income is taxable, including foreign salary, rent, interest and dividends, with a credit for foreign tax paid under Article 123 limited to the Turkish tax attributable to that income. A non-resident is taxable only on income sourced in Turkey.
When is the Turkish income tax return due?
In March following the income year. Article 92 sets the statutory deadline at 25 March, and the Ministry has extended it to the end of March in recent years. Tax is paid in two equal instalments, the first by the end of March and the second by the end of July.
Is salary paid from abroad exempt from Turkish income tax?
Only where the conditions in Article 23(14) are met in full: the employer’s legal and business centre is outside Turkey, the salary is paid in foreign currency, it is paid out of earnings generated abroad, and it is not charged as an expense against Turkish income. Where any condition fails, the salary is taxable and the individual must register and file, since a foreign employer without a Turkish presence is not a withholding agent.
What are the penalties for filing late in Turkey?
A late or incorrect return that results in an underpayment attracts a tax loss penalty equal to the tax underpaid, together with late payment interest. Filing late without an underpayment attracts an irregularity penalty. Voluntary disclosure before any audit or referral reduces the exposure, so correcting a missed year is materially cheaper than waiting for an assessment.
Your income tax position in Turkey
Ozbek CPA advises foreign nationals, assignees and foreign employers on residence status, payroll withholding, annual filings and treaty relief for income tax in Turkey.
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