What Is Taxable Income?
Definition
Taxable Income: The amount a tax is calculated on: income after exemptions, deductions and expenses. For a salary it is usually the gross pay minus the employee's social insurance contributions.
Taxable income is the amount a tax is calculated on: income after exemptions, deductions and expenses. For a salary it is usually the gross pay minus the contributions the employee pays for social insurance. The income tax tariff applies to this amount, not to the gross income, so every deduction lowers the tax.
Where it appears in the formulas
For a monthly salary, tax base = gross pay − social security premium − unemployment premium. The gross-to-net and net-to-gross salary calculators find each month’s base this way; the income tax calculator takes a yearly taxable income as its input.
In Türkiye
For a salary, the taxable income is the gross pay minus the employee’s social security and unemployment premiums (Income Tax Law no. 193, art. 63). The employee pays 14% social security and 1% unemployment insurance, up to the social security earnings ceiling.