The revaluation rate: what it is and which amounts it changes

Fixed amounts in the tax laws (penalty amounts, filing thresholds, exemptions, fees) are not rewritten by an amending law every year. Most of them are tied to a single rate announced once a year: the revaluation rate. Below we summarise how the rate is set, which amounts it changed for 2026 and how it differs from the rates announced for provisional tax periods.

Legal basis and calculation

The rate is defined in paragraph (B) of repeated article 298 of the Tax Procedure Law No. 213. Under it, the revaluation rate is the average price increase in the domestic producer price index (D-PPI, Yİ-ÜFE) published by TurkStat, as at October of the relevant year, compared with the same period of the previous year.

• The measure is producer prices, not consumer inflation (CPI).
• It is the average increase, not the annual change of a single month; the rate can therefore differ from the annual D-PPI change in October.
• The rate is set by the Ministry of Treasury and Finance and announced in the Official Gazette by a Tax Procedure Law general communiqué.

Announcement and effect

Because the calculation relies on October data, the communiqué is usually published in November. As a rule, the rate announced for one year is used to calculate the amounts that apply from 1 January of the following year.

Source: Tax Procedure Law General Communiqué No. 585. Once the 2026 rate is announced, the amounts on this site and the revaluation rate tool will be updated. Amounts currently in force: Current parameters.

Which amounts does it update?

The rate does not change any amount on its own; each law refers to it in its own article:

• Tax Procedure Law: Repeated article 414 provides that the fixed thresholds, amounts and penalties in the Law are increased by this rate. The 2026 amounts were announced by Tax Procedure Law General Communiqué No. 588. They include the general and special irregularity penalties, the invoice threshold and the thresholds for switching to balance-sheet books: Administrative fines.
• Income Tax Law: Repeated article 123; amounts such as the tax brackets (art. 103), the residential rental income exemption (art. 21) and the filing thresholds (art. 86). The 2026 amounts were set by Income Tax General Communiqué No. 332.
• Motor vehicle tax, stamp duty and fees: The Motor Vehicle Tax Law No. 197 art. 10, the Stamp Duty Law No. 488 and the Fees Law No. 492 tie their amounts to this rate but also allow a different rate to be set. For 2026, Presidential Decision No. 10783 increased the motor vehicle tax tariffs, the fixed stamp duty amounts and the stamp duty cap, fixed fees, and the minimum and maximum fee limits by 18.95%.
• Administrative fines: Under art. 17/7 of the Misdemeanours Law, administrative fines are increased by this rate with effect from the start of each calendar year. The Ministry of Labour and Social Security applied a 25.49% increase to the 2026 fines.
• Property tax: The Property Tax Law also has update rules tied to this rate; details: Property and high-value residence tax.

Examples of amounts updated for 2026

Sources: Communiqués No. 588 and 332 and Stamp Duty General Communiqué No. 71: Official Gazette 31.12.2025, 5th repeated issue · Presidential Decision No. 10783 · Ministry of Labour administrative fines

Rounding rules

When an announced amount is slightly lower than the amount calculated with the full rate, the reason is usually a rounding rule:

• TPL repeated art. 414 and ITL repeated art. 123: Fractions not exceeding 5% of the calculated amount are disregarded. This is why the amounts in the communiqués are mostly round numbers.
• Motor vehicle tax (Law No. 197 art. 10): Fractions of up to TRY 1 in the tax payable are disregarded.
• Administrative fines (Misdemeanours Law art. 17/7): Fractions of up to TRY 1 are disregarded.

The severance pay cap is not tied to this rate

Under art. 14 of the Labour Law No. 1475, the severance pay cap is tied to the retirement bonus paid to the highest-ranking civil servant for one year of service. The Ministry of Labour and Social Security calculates the 2026 cap with the civil servant salary coefficient and the base salary coefficient; the revaluation rate is not used (Ministry of Labour 2026 severance cap calculation). Details: Severance pay.

Do not confuse it with the provisional tax period rate

Paragraph (Ç) of repeated article 298 of the Tax Procedure Law allows depreciable assets and their accumulated depreciation to be revalued on an optional basis in periods in which the conditions for inflation adjustment are not met. Because Law No. 7571 rules out inflation adjustment for the 2025–2027 periods, this option is back on the agenda: Inflation adjustment.

The rate used for this revaluation during the year is not the annual 25.49%. The Revenue Administration calculates a separate rate for each provisional tax period and announces it in a Corporate Tax Law circular. The latest announced rate:

The core difference: the annual rate carries the fixed amounts in the laws into the next year; the period rate is used to carry a business's asset values to the end of the relevant period. For a rough calculation: Revaluation rate

Worked examples

Formula: New year's amount = Previous year's amount × (1 + revaluation rate); the result is then adjusted under the rounding rule of the relevant law. Because the 2026 rate has not yet been announced, the 30% below is only an example.

Example 1: irregularity penalty. The 1st degree irregularity penalty for capital companies is TRY 35,000 in 2026. 35,000 × 1.30 = TRY 45,500. Since 5% of the calculated amount is TRY 2,275, the fraction of TRY 500 may be disregarded and the amount may be announced as TRY 45,000. The communiqué sets the final amount.

Example 2: administrative fine. In 2026 an employer employing a foreigner without a work permit is fined TRY 102,503 per foreigner. 102,503 × 1.30 = TRY 133,253.90. Because fractions of up to TRY 1 are disregarded, the amount becomes TRY 133,253.

For ways to reduce tax penalties and voluntary disclosure: Tax penalties and voluntary disclosure

Frequently asked questions

Is the revaluation rate the inflation rate? No. It is based on D-PPI, not CPI, and it uses the average price increase as at October, not the annual change of a single month.

When will the amounts for 2027 be known? After the 2026 rate is announced, through the communiqués that set the Tax Procedure Law, Income Tax Law and stamp duty amounts. The 2026 amounts were published in the Official Gazette of 31.12.2025.

Does every amount increase by the same rate? That is the rule, but some laws let the President set a different rate. In 2026, motor vehicle tax, stamp duty and fees were increased by 18.95% instead of 25.49%.

Does the severance pay cap increase by this rate? No. The cap is tied to the civil servant salary coefficients and is updated together with civil servant salaries.

Which rate is used in provisional tax periods? The Revenue Administration announces a separate rate under repeated art. 298/B for each provisional tax period; for the 3rd period of 2026 it is 19.64%. The circular lists Corporate Tax Law art. 32/A and Income Tax Law provisional art. 69 as the provisions it relates to.

Is revaluation mandatory? Revaluing assets under repeated art. 298/Ç is optional. The increase in fixed amounts, on the other hand, applies automatically; the taxpayer does not need to do anything.

To assess how your own amounts will change in 2027, you can reach us through the contact page.

Legal basis: Tax Procedure Law No. 213 repeated art. 298 (B) and (Ç), repeated art. 414; Income Tax Law No. 193 repeated art. 123; Law No. 197 art. 10; Misdemeanours Law No. 5326 art. 17/7; Tax Procedure Law General Communiqué No. 585 (Official Gazette 27.11.2025, No. 33090); Tax Procedure Law General Communiqué No. 588, Income Tax General Communiqué No. 332 and Stamp Duty General Communiqué No. 71 (Official Gazette 31.12.2025, No. 33124, 5th repeated issue); Presidential Decision No. 10783 (Official Gazette 31.12.2025, No. 33124).