Personal Income Tax 2026 β Turkey
Turkey applies progressive income tax rates from 15% to 40% on seven types of income including employment, business profits, agricultural income, professional earnings, real estate capital, movable capital, and other income. Administered by Turkish Revenue Administration (GΔ°B).
Personal Income Tax 2026
Turkey applies progressive income tax rates from 15% to 40% on seven types of income including employment, business profits, agricultural income, professional earnings, real estate capital, movable capital, and other income. Administered by Turkish Revenue Administration (GΔ°B).
Progressive Rates 2026
Approximately up to $5,300 annual income. Entry level tax rate for lowest earners. Minimum wage earners often fully exempt through tax credits.
Approximately $5,300-$11,200 annual income. Middle income bracket. Common range for many salaried employees.
Approximately $11,200-$42,000 annual income. Upper-middle income bracket. Significant tax increase at this level.
Approximately $42,000-$148,000 annual income. High earner bracket. Applies to successful professionals and business owners.
Above approximately $148,000 annual income. Top marginal rate. Applies to highest income individuals only on amounts above threshold.
Tax Exemptions & Credits
Employees earning minimum wage (22,104 TRY/month as of 2026) fully exempt from income tax. Significant benefit for lower-income workers. Adjusted annually for inflation.
Annual capital gains under threshold are tax-exempt. Adjusted for inflation yearly. Applies to sale of securities, real estate (held under 5 years), and similar assets.
Withholding Tax Rates
Flat 15% withholding tax on dividend distributions. Applies to both residents and non-residents. Treaty rates may reduce for non-residents. Final tax - no additional filing required.
Rates vary by instrument type. Bank deposits, bonds, and other securities have different rates. Ranges from 0% for certain government bonds to 20% for other instruments.
When company rents from individual, 20% withholding tax applies on gross rent. Withheld at source by tenant company. Landlord may offset against annual tax liability.
Payments to self-employed professionals (lawyers, engineers, consultants) subject to 20% withholding. Advance payment - offset against final tax liability.
Capital Gains Tax
Property sold within 5 years taxed at progressive rates based on gain. Difference between market value and cadastral value at purchase. Tax-free after 5-year holding period.
Properties held over 5 years completely exempt from capital gains tax. Significant incentive for long-term property investment. No reporting required if held 5+ years.
Stocks, bonds sold within 1 year taxed at progressive income rates. Gains added to annual income. Can offset losses against gains in same year.
Assets held over 1 year may qualify for preferential rates. Specific rates depend on asset type and holding period. Generally more favorable than short-term rates.
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Social Security (SGK)
Turkey's mandatory social insurance system (SGK - Sosyal GΓΌvenlik Kurumu) funds pensions, healthcare, unemployment benefits. Employee contributions 14% plus 1% unemployment, employer contributions 20.5% plus 2% unemployment make total burden approximately 35-37.5%.
03Business Taxation
Corporate income tax rate 25% in 2026. Special incentive zones offer 0% corporate tax. VAT standard rate 20% with reduced rates of 10% and 1%. Significant incentives for technology, export, and R&D companies.
04Digital Nomad Visa
Turkey launched Digital Nomad Visa in April 2024. Allows remote workers aged 21-55 to live in Turkey for one year with renewal option. Minimum income $3,000/month required. No tax on foreign income if staying under 183 days.