Personal Income Tax 2026 – Turkey

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.

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.

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.

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.