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Turkey tax guide 2026
Turkey taxes residents on worldwide income at 15-40%, but inflation-indexed thresholds and wide exemptions soften the bite: pay up to the minimum wage is tax-free for everyone, half of dividends are exempt, property gains vanish after 5 years and quoted shares after 1 year. Inheritance tax is a gentle 1-10%, and crypto still waits for its first dedicated tax.
- Rate range
- 15% – 40%
- Key allowance
- Income up to the minimum wage (TRY 33,030/month gross in 2026) is exempt for every employee
- Tax year
- Calendar year
- Filing deadline
- End of March; most wage earners and investors never file
Taxes covered
- Income tax40%
Five bands from 15% to 40% above TRY 5.3 million; employment income enjoys a wider 27% band (to TRY 1.5 million) and the minimum-wage exemption.
- Dividend tax15% + scale on half
Dividends carry a 15% withholding; half the gross dividend is exempt and the withholding credits in full against tax on the other half.
- Capital gains tax0% / 10% / scale
Time is the tax planner: property exempt after 5 years, quoted shares after 1 year, unquoted resident shares after 2 — with a 10% withholding on bond and instrument gains.
- Crypto taxNo dedicated tax
Turkey has no crypto-specific tax in force — individual trading gains sit in a legal grey zone widely treated as untaxed; a proposed 0.03% transaction levy was withdrawn from parliament in March 2026.
- Social security15%
Employees pay 14% social security plus 1% unemployment insurance on salary between TRY 33,030 and 297,270 a month.
- Inheritance tax1% – 10% (gifts 10-30%)
Inheritances pay 1-10% progressive after a TRY 2.9 million per-heir exemption; gifts pay 10-30%, halved for close family.
- Withholding tax15% / 20%
Dividends leave at 15%, professional fees and rents to companies at 20%, bonds at 10% — and securities gains of non-residents at 0%.
Special regimes
- Minimum-wage exemption
Since 2022, a slice of every salary equal to the minimum wage escapes income tax — TRY 33,030 a month gross in 2026.
- Holding periods beat tax
Property gains are exempt after 5 years, Istanbul-quoted shares after 1 year, and unquoted resident-company shares after 2 years.
- Half of dividends exempt
50% of gross dividends are tax-free and the 15% withholding credits in full — small shareholders usually owe nothing more.
- Foreign-employer salaries exempt
Pay from a non-resident employer in foreign currency, funded from foreign earnings, carries no Turkish income tax — foreign pensions are exempt too.
- Young entrepreneur relief
First-time business owners under 29 pay nothing on their first TRY 400,000 of income for 3 years.
- New-resident foreign-income exemption (Law 7582)
Qualifying newcomers — no Turkish domicile or tax liability in the prior 3 years — get a 20-year exemption on foreign-source income and gains, applying from 2026 income.
Recent changes
- 2026-06-04Law 7582 created a 20-year exemption on foreign-source income and gains for qualifying new residents (no Turkish domicile or tax liability in the prior 3 calendar years), plus a flat 1% duty on qualifying gratuitous transfers during the exemption period.
- 2026-03-26The proposed 0.03% crypto transaction levy on licensed platforms was withdrawn from the omnibus bill after committee approval — no dedicated crypto tax is in force.
- 2026-01Thresholds were indexed — the 40% band now starts above TRY 5.3 million, the minimum wage rose to TRY 33,030 a month, and the simple taxation method was closed to most urban trades in metropolitan provinces.
- 2024-12The dividend withholding rate rose from 10% to 15% for residents and non-residents alike.
- 2024-08Stock options from approved technology start-ups became income-tax-exempt up to a year's gross salary, with clawbacks if shares are sold within 12 years.