Turkey Income Tax Calculator
How It Works
Turkey has a progressive income tax system with five brackets ranging from 15% to 40%. The brackets are adjusted periodically to account for inflation. Turkish tax residents are taxed on worldwide income, while non-residents are taxed only on Turkish-sourced income.
Employment income is subject to withholding by the employer, who calculates and remits monthly tax payments. Self-employed individuals and those with multiple income sources must file annual returns. The tax year follows the calendar year.
Additional deductions may be available for private pension contributions, education expenses, and health insurance premiums. A minimum living allowance reduces the tax burden for the lowest bracket, effectively creating a partial exemption for basic living costs.
Frequently Asked Questions
What are the Turkish income tax brackets?
Turkey has five brackets: 15% up to 110,000 TRY, 20% from 110,000-230,000, 27% from 230,000-580,000, 35% from 580,000-3,000,000, and 40% above 3,000,000 TRY. These thresholds are updated frequently.
Is there a tax-free allowance in Turkey?
Turkey has a minimum living allowance (Asgari Geçim İndirimi) that reduces tax for lower-income workers. The amount varies based on marital status and number of dependents. It is applied as a tax credit rather than a deduction.
Do I need to file a tax return in Turkey?
Salaried employees with a single employer generally do not need to file. Filing is required if you have multiple employers, rental income above a threshold, investment income, or self-employment income.
How is rental income taxed in Turkey?
Rental income has a separate exemption amount. Income above the exemption is added to other income and taxed at the progressive rates. You can deduct 15% of rental income as a standard expense or actual documented expenses.