How Rental Income Is Taxed in Türkiye

Formula

Taxable income = (yearly rent − home rent exemption) − expenses

Flat expenses = (yearly rent − home rent exemption) × 15%

Tax to pay = Σ (amount in the bracket × rate of the bracket) − tax withheld

• Yearly rent: the gross rent collected in the calendar year, homes and workplaces together
• Home rent exemption: it comes off home rent only; 47,000 TRY for 2025 income, 58,000 TRY for 2026 income
• Expenses: flat expenses (15%) or documented actual expenses; the share of actual expenses that falls on the exempt part cannot be deducted
• Σ: the income tax tariff applied bracket by bracket (Income Tax Law art. 103)
• Tax withheld: the 20% the tenant of a workplace deducted during the year

The rental income tax calculator does every step, with the filing limits and the credit for tax withheld. The income tax calculator applies only the tariff to a taxable income you enter.

Step-by-step example

Home rent of 30,000 TRY a month in 2025, 360,000 TRY for the year, no other income, flat expenses. The return is filed in March 2026:

1. Take off the exemption: 360,000 − 47,000 = 313,000 TRY.
2. Find the flat expenses: 313,000 × 15% = 46,950 TRY.
3. Find the taxable income: 313,000 − 46,950 = 266,050 TRY.
4. Apply the 2025 tariff (income other than wages): 158,000 × 15% = 23,700 TRY and 108,050 × 20% = 21,610 TRY.
5. Add them: 23,700 + 21,610 = 45,310 TRY of income tax.

No tax is withheld from home rent, so the whole 45,310 TRY is paid, in two equal instalments: the first by 31 March 2026 and the second by 31 July 2026. The return also pays a fixed stamp duty; in the examples of the GİB guide it is 1,189.50 TRY.

Workplace rent and the credit for tax withheld

In an example of the 2026 GİB guide, a person earns 432,000 TRY of home rent and 720,000 TRY of workplace rent (60,000 TRY gross a month) in 2025, has no other income and chooses flat expenses:

1. The exemption comes off the home rent only: (432,000 − 47,000) + 720,000 = 1,105,000 TRY.
2. Flat expenses are 1,105,000 × 15% = 165,750 TRY, so the taxable income is 939,250 TRY.
3. With the 2025 tariff the income tax is 233,737.50 TRY.
4. The tax the workplace tenant withheld during the year (720,000 × 20% = 144,000 TRY) is set off: the income tax to pay is 89,737.50 TRY. The rental income tax calculator gives the same result.

The 2025 and 2026 amounts and the rules

According to the GİB guide:

Every year since 2005 is on the residential rent exemption by year page.

• If your home rent does not exceed the exemption and you have no other income to declare, you do not file a return.
• People who must declare a commercial, agricultural or professional income on a yearly return cannot use the exemption (Income Tax Law art. 21). Neither can a person whose home rent is above the exemption and whose gross wages, income from securities, real-estate capital income and other income together exceed the third bracket of the wage tariff, whether or not that income must be declared. For 2026 income that amount is 1,500,000 TRY and the home-rent exemption is 58,000 TRY; for 2025 income the amount was 1,200,000 TRY (Income Tax General Communiqués serial no. 332 and 329).
• If you do not declare home rent on time, or declare less than you earned, you lose the exemption.
• The expense method is chosen for all your properties together. After choosing flat expenses, you cannot switch to actual expenses for two years.
• The return for 2025 rent is filed from 1 to 31 March 2026.