Everything you need to know about income tax in Turkey

What is income tax?

It is a type of tax deducted from the income earned by real individuals, and income is the total net value of revenues and profits obtained by real persons during the calendar year.

What are the income elements subject to income tax?

The revenues and profits included in the incomes subject to income tax according to the income tax law are:

• Commercial profits.
• Agricultural profits.
• Wage tax in Turkey.
• Profits from freelance work.
• Immovable capital income.
• Movable capital income.
• Other revenues and profits.

Who is required to pay full income tax in Turkey?

• Residents in Turkey.
• Those residing in Turkey for six months or more without interruption during the calendar year.
• Turkish citizens residing outside Turkey as a result of activities and businesses of companies and institutions based in Turkey.

Income tax is deducted from all profits and revenues earned by these individuals inside and outside Turkey.

Who pays partial income tax in Turkey?

Non-residents in Turkey are subject to partial tax liability, where taxes are deducted only from the profits and revenues they earn from Turkey.

Income tax law in Turkey

The annual income tax is declared in the period from the beginning of March until the evening of the 25th of the same month of each year following the year in which the taxable income was earned. It is paid in two installments: the first installment is paid until the end of March, and the second installment is paid until the end of July. The tax is paid to the tax office located in the area of residence of the individuals liable to pay the tax or in the area where their workplace is located, or through banks.

Income tax rates in Turkey for 2026

How to calculate income tax in Turkey

How to calculate income tax: Several calculations can be made for income tax according to the table above:

If the taxable amount is 100,000 lira, this amount falls within the first bracket, where 15% will be deducted, so the deducted tax will be as follows:
Deducted tax = 100,000 * 15% = 15,000 Turkish lira.

If the taxable amount is 200,000 lira, and since 158,000 lira of the amount falls within the first bracket, 15% will be deducted, that is (158,000*15%) which equals 23,700, the tax imposed on the first bracket of the amount.

The remaining amount, which is 42,000 lira, falls within the second bracket, so 20% is deducted from it (42,000*20%) = 8,400 lira, the tax imposed on the remaining part of the amount. The total deducted tax from the mentioned amount is 23,700 + 8,400 = 32,100 lira.

If the taxable amount is 850,000 lira, the tax is calculated as follows:

15% is deducted from 158,000 (first bracket), i.e. 23,700 lira from the amount, and 20% is deducted from the second bracket (the remaining part of 330,000 after subtracting 158,000), i.e. 20% of 172,000 in the second bracket, so its tax is 34,400 lira. The remaining amount, which is 520,000 lira, falls within the third bracket and is subject to a tax rate of 27%, so its tax is 140,400.

The results of the deducted taxes from the three brackets are summed to get the total tax imposed on the amount: 23,700 + 34,400 + 140,400 = 198,500, the tax imposed on the amount.

Other important information and topics, learn about them:

• Comprehensive information about luxury real estate tax in Turkey.
• Buying an apartment in Turkey in installments: important conditions and legal matters.
• Important matters about real estate tax in Turkey.

Edited by: Imtilak Real Estate©