Who pays?
Income tax is paid by the individual who earns the income, in one of two ways:
- Withholding (at source): the employer deducts it monthly from wages; businesses paying rent or professional fees withhold 20%. Withholding rates.
- Declaration: business profits, professional income, and commercial and residential rent are declared on the annual return in March; withholdings and provisional tax paid during the year are credited.
2026 tariff
| Taxable income | Wages | Other income |
|---|---|---|
| 0 – 190,000 TRY | 15% | 15% |
| 190,000 – 400,000 TRY | 20% | 20% |
| 400,000 – 1,000,000 TRY | 27% | 27% |
| 1,000,000 – 1,500,000 TRY | 27% | 35% |
| 1,500,000 – 5,300,000 TRY | 35% | 35% |
| Over 5,300,000 TRY | 40% | 40% |
The difference is at the end of the third bracket: TRY 1,500,000 for wages, TRY 1,000,000 for other income.
How do brackets work?
Each rate applies only to the part in that bracket. If your income exceeds TRY 400,000 by 1 lira, your whole income is not taxed at 27% — only that lira. Hence two rates:
- Marginal rate: the rate on the next lira (top bracket).
- Effective rate: total tax ÷ taxable income; always lower than the marginal rate.
Example: other income, TRY 1,000,000 taxable
| Bracket | Amount in bracket | Tax |
|---|---|---|
| 15% | TRY 190,000 | TRY 28,500 |
| 20% | TRY 210,000 | TRY 42,000 |
| 27% | TRY 600,000 | TRY 162,000 |
| Total | TRY 1,000,000 | TRY 232,500 (effective 23.25%) |
Legal basis
Income Tax Law No. 193 arts. 103 and 104; 2026 Income Tax General Communiqué No. 332 (tariff).