Annual income tax return: who files and which income is included?
Who must file an annual income tax return, income included in and excluded from the return, deductions, deadline, payment instalments and using the pre-filled return system.
In Türkiye, income tax is levied on the total income a person earns in a calendar year. Most income is taxed at source (by withholding) during the year; the annual return is the settlement document filed to make up any tax still due or to reclaim any excess withheld.
Deadline and payment
- For 2026 income, the return is filed between 1–31 March 2027.
- The tax calculated is paid in two equal instalments: the first by the end of March and the second by the end of July.
- The stamp duty on the return is TRY 1,189.50.
Who must file?
Those who file in all cases: those earning business income (under the actual method), professional income and agricultural income (under the actual method). These people file a return even if they make a loss.
Those who file if a threshold is exceeded:
| Income | Filing position |
|---|---|
| Wages | Wages from a single employer that are fully taxed by withholding are not declared, except for very high amounts. There are separate rules for those receiving wages from more than one employer: Wages from more than one employer |
| Residential rental income | The part exceeding TRY 58,000 a year is declared (the exemption has other conditions too) |
| Commercial rental income | Even if subject to withholding, it is declared if the total exceeds a certain threshold |
| Dividends | Half of the dividends received from a company is exempt; the remaining half is declared if it exceeds TRY 22,000 |
| Capital gains | E.g. sale within 5 years of real estate not belonging to a business; gains exceeding the exemption amount are declared |
Detailed guide to rental income: Rental income return · Dividends: Taking dividends from a company
Deductions from the declared income
Some expenditure can be deducted from declared income, provided it is documented:
- Education and health expenditure: up to a certain percentage of declared income; for the person, their spouse and minor children, with documents obtained from income or corporate taxpayers in Türkiye.
- Personal insurance premiums: part of the premiums paid for life and personal insurance, within limits.
- Donations and aid: those made to institutions listed in the Law, within percentage limits: Donation, sponsorship and advertising expenses
- Disability allowance: an annual amount according to the degree of disability.
Taxes withheld during the year
Withholding deducted during the year on rent, professional fees or dividends is offset against the tax calculated on the annual return. Advance taxes paid by those with business and professional income are deducted in the same way. Any amount that cannot be offset can be refunded if the conditions are met.
Pre-filled return system
People declaring rent, wages, income from movable and immovable capital and capital gains can use the Revenue Administration's Pre-filled Return (Hazır Beyan) system. The system partly fills in the return with information from banks and employers; your job is to check this information and complete what is missing. Those with business and professional income file by e-return, usually through their accountant.
Example calculation
To calculate the tax roughly, you can use the income tax bracket tool. In the 2026 tariff the first bracket is 15% up to TRY 190,000; as income rises the rate increases in steps up to 40%, and the higher rate applies only to the part exceeding each bracket.
Common mistakes
- Not filing on time to benefit from an exemption. Some exemptions, such as the residential rent exemption, can be lost if the return is not filed on time.
- Adding rental income in the spouse's name to your own return. Filing is personal; each owner declares their own share.
- Forgetting to offset withholding deducted during the year. Too much tax is paid.
Legal basis: Income Tax Law No. 193 arts. 85, 86, 89, 92, 103, 117, 121.