How to Calculate Income Tax in Türkiye

Formula

Income tax = Σ (amount in the bracket × rate of the bracket)

• Σ: the sum over every bracket the taxable income reaches
• Amount in the bracket: the part of the taxable income between the start and the end of the bracket
• Rate of the bracket: the rate in the tariff (15%, 20%, 27%, 35% or 40%)
• Taxable income (matrah): the yearly income after exemptions, deductions and expenses

The effective tax rate is income tax / taxable income × 100. The marginal tax rate is the rate of the highest bracket the taxable income reaches.

Step-by-step example

Income year 2026, taxable income of 1,000,000 TRY other than wages (for example rent or self-employment income):

1. The first bracket runs up to 190,000 TRY: 190,000 × 15% = 28,500 TRY.
2. The second bracket runs from 190,000 to 400,000 TRY, and 210,000 TRY falls in it: 210,000 × 20% = 42,000 TRY.
3. The third bracket runs from 400,000 to 1,000,000 TRY, and 600,000 TRY falls in it: 600,000 × 27% = 162,000 TRY.
4. Add the tax of the brackets: 28,500 + 42,000 + 162,000 = 232,500 TRY.
5. Find the effective rate: 232,500 / 1,000,000 × 100 = 23.25%.

The income after tax is 767,500 TRY. The marginal rate is 27%; income above 1,000,000 TRY would be taxed at 35%.

The 2026 income tax brackets

The tariff is published every year in an Income Tax General Communiqué. For 2026 income it is Communiqué no. 332 (Official Gazette, 31 December 2025):

For 2025 income (Communiqué no. 329, Official Gazette, 30 December 2024) the bracket limits were 158,000 TRY, 330,000 TRY, 800,000 TRY (1,200,000 TRY for wages) and 4,300,000 TRY.

Tax at different incomes

Income year 2026, income other than wages:

The effective rate is never higher than the marginal rate, because the lower brackets are always taxed at the lower rates.

What changes the result

• Taxable income is not gross income. The tariff applies to what is left after exemptions, expenses and the deductions of Income Tax Law art. 89. For rent, the home exemption and the expenses come off first.
• Type of income. For wages the 27% bracket is wider. In 2026, 1,200,000 TRY of taxable income pays 302,500 TRY as income other than wages and 286,500 TRY as wages.
• Withholding and provisional tax. Tax withheld during the year and provisional tax already paid are set off against the tax on the annual return, so the tax calculated is not always the tax you pay.
• Salaries. Employers withhold tax every month on the cumulative tax base and apply the minimum wage exemption. For a monthly payslip, use the gross-to-net salary calculator.