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Income tax in Turkey 2026
Rates climb from 15% to 40% above TRY 5.3 million, with all thresholds re-indexed each year for inflation — and salaries get a wider middle band than other income.
The first slice of every wage equal to the minimum wage (TRY 33,030 a month gross) is exempt, which wipes out tax for low earners entirely.
At a glance
- top rate
- 40% above TRY 5.3 million
- entry band
- 15% on the first TRY 190,000 of taxable income
- tax year basis
- Calendar year
- filing deadline
- End of March; payroll withholding is final for most employees
- residency basis
- Worldwide; resident via legal domicile or 6+ months' continuous stay
- regime flag
- Istanbul Finance Centre staff: 60-80% of salary exempt with 5-10 years' foreign experience
Rates
Income tax scale 2026 — employment income
| Taxable income (TRY) | Rate | Tax on all bands below (TRY) |
|---|---|---|
| 0 – 190,000 | 15% | 0 |
| 190,001 – 400,000 | 20% | 28,500 |
| 400,001 – 1,500,000 | 27% | 70,500 |
| 1,500,001 – 5,300,000 | 35% | 367,500 |
| Over 5,300,000 | 40% | 1,697,500 |
Marginal rates apply within each band.
Income tax scale 2026 — other income
| Taxable income (TRY) | Rate | Tax on all bands below (TRY) |
|---|---|---|
| 0 – 190,000 | 15% | 0 |
| 190,001 – 400,000 | 20% | 28,500 |
| 400,001 – 1,000,000 | 27% | 70,500 |
| 1,000,001 – 5,300,000 | 35% | 232,500 |
| Over 5,300,000 | 40% | 1,737,500 |
Marginal rates apply within each band.
Thresholds & allowances
- Minimum-wage exemptionTRY 33,030/month gross (2026)
Applied to every employee's salary after social security deductions; salaries also carry no stamp duty since 2022
- Disability allowanceTRY 36,000 – 144,000 a year
By degree of disability, for employment, professional and business earners
- Young entrepreneur exemptionFirst TRY 400,000 for 3 years
First-time business, agricultural or professional taxpayers under 29
- Education and health expensesUp to 10% of declared income
Substantiated Turkish costs for the taxpayer, spouse and children under 18
- Pension and insurance premiumsUp to 15% of declared income
Individual retirement premiums, capped at the annual minimum wage; personal insurance up to 5%
- Angel investor deduction75-100% of share value, max TRY 2.5 million/year
Stakes in resident joint-stock companies held over 2 years, to end-2027
Residency
Residency trigger
You are resident with a legal domicile in Turkey or after more than 6 continuous months in a calendar year — though foreign business people, scientists, journalists and students on defined missions keep non-resident status regardless of stay length.
Non-resident treatment
Non-residents pay only on Turkish-source income, mostly through final withholding; wages for work performed or used in Turkey are taxable at the progressive rates via payroll.
Notes
- Most employees never file: payroll withholding at the progressive rates is final unless wages exceed TRY 5.3 million or a second employer pays over TRY 400,000.
- Business and professional earners always file (end of March) and pay quarterly advances of 15% of actual quarterly income; the final tax splits into March and July instalments.
- Istanbul Finance Centre employees with 5+ years of foreign professional experience exclude 60% of salary (80% with 10+ years).
- Salaries from non-resident employers paid in foreign currency out of foreign earnings are exempt, as are salaries of construction and technical workers abroad paid from foreign earnings.
- 80% of income from qualifying service exports — software, engineering, design, medical reporting and similar work for foreign clients — is exempt.
- A June 2026 law gives qualifying new residents — people with no Turkish domicile or tax liability in the prior 3 calendar years — a 20-year exemption on foreign-source income and gains, effective for 2026 income; conditions apply, so check eligibility before relying on it.
FAQ
What is the top income tax rate in Turkey?
40%, on taxable income above TRY 5.3 million in 2026 — thresholds re-index with inflation every year.
How does Turkey's minimum-wage exemption work?
A slice of every employee's pay equal to the minimum wage — TRY 33,030 a month gross in 2026 — is exempt from income tax, zeroing the bill for minimum-wage earners.
Do employees file tax returns in Turkey?
Rarely — payroll withholding is final unless annual wages pass TRY 5.3 million or a second employer pays more than TRY 400,000.
Figures: tax year 2026, compiled from public sources. Not tax advice.