As Turkey enters the 2026 fiscal year, several key payroll and taxation parameters have been officially revised. These changes directly affect salary calculations, employee benefits, tax exemptions, and net pay, making them highly relevant for employers, HR professionals, payroll specialists, and foreign companies operating in Turkey.
The updates for the 2026 calendar year were introduced through Income Tax General Communiqué No. 332, published in the Official Gazette dated 31 December 2025 (No. 33124, 5th Supplement). The Communiqué defines new thresholds for income tax–exempt benefits, disability tax deductions, and income tax brackets applicable as of 1 January 2026.
This article provides a structured overview of the 2026 I. Period legal payroll parameters, explains how they apply in practice, and highlights their implications for employers and employees.
Overview of 2026 Payroll and Tax Adjustments
For 2026, the Turkish tax authorities have updated several core elements of the income tax framework, including:
- Daily income tax–exempt meal allowances
- Daily income tax–exempt transportation benefits
- Monthly disability tax deductions
- Progressive income tax tariffs for wages and other income
These parameters are essential for ensuring:
- Accurate payroll processing
- Compliance with Turkish tax legislation
- Optimized employee compensation structures
Income Tax–Exempt Meal Allowance for 2026
Legal Background
The income tax exemption applicable to meal allowances has been revised under Income Tax General Communiqué No. 332 and entered into force on 1 January 2026.
This exemption applies to meal benefits:
- Provided by the employer
- Offered outside the workplace or its annexes
- Granted in accordance with Article 23/8 of the Income Tax Law
2026 Meal Allowance Exemption Amount
For the 2026 calendar year, the maximum daily meal allowance exempt from income tax is set at:
- TRY 300.00 per day
Amounts within this limit are excluded from taxable income, while any excess is subject to income tax and social security contributions.
Practical Implications for Employers
Employers who provide meal cards, vouchers, or cash meal payments must ensure that:
- Daily allowances do not exceed the exemption threshold unless intended as taxable income
- Payroll systems correctly split exempt and taxable portions
- Employment contracts and internal policies align with the updated limit
This exemption remains a widely used salary optimization tool in Turkey.
Income Tax–Exempt Transportation Allowance for 2026
Legal Framework
Transportation benefits provided to employees for commuting between home and workplace are also subject to income tax exemptions under Article 23/10 of the Income Tax Law.
The updated exemption amount was confirmed by Income Tax General Communiqué No. 332, effective from 1 January 2026.
2026 Transportation Allowance Exemption Amount
For the 2026 calendar year, the daily transportation allowance exempt from income tax is determined as:
- TRY 158.00 per day
This exemption applies regardless of whether the benefit is provided in cash or through transportation cards, provided legal conditions are met.
Payroll Considerations
Employers should:
- Apply the exemption on a daily basis
- Ensure consistency between payroll records and tax declarations
- Monitor cumulative benefits to avoid unintended tax exposure
Transportation allowances continue to be a cost-effective employee benefit, particularly in metropolitan areas.
Disability Tax Allowance for 2026
Purpose of the Disability Deduction
The disability tax allowance is a monthly income tax deduction granted to employees with certified disabilities. It aims to reduce the tax burden on individuals facing additional living and healthcare costs.
The revised amounts for 2026 entered into force following the publication of Income Tax General Communiqué No. 332.
2026 Disability Tax Allowance Amounts
For the 2026 calendar year, the monthly disability tax deductions under Article 31 of the Income Tax Law are as follows:
- First-degree disability: TRY 12,000.00
- Second-degree disability: TRY 7,000.00
- Third-degree disability: TRY 3,000.00
These amounts are deducted directly from the employee’s taxable income, resulting in lower monthly income tax.
Employer Responsibilities
Employers must ensure that:
- Valid medical documentation is obtained
- Disability degrees are correctly classified
- Payroll systems apply the correct deduction level
Incorrect application may lead to tax reassessments during inspections.
2026 Income Tax Tariff: General Overview
The income tax brackets applicable for 2026 were also updated through Income Tax General Communiqué No. 332. Turkey applies a progressive income tax system, meaning higher income levels are taxed at higher marginal rates.
Different tariff structures apply to:
- Employment income (wages)
- Non-wage income (such as rental or commercial income)
Income Tax Brackets for Wage Earners – 2026
The following tax brackets apply to salary and wage income for the 2026 calendar year:
- TRY 0 – 190,000: 15%
- TRY 190,001 – 400,000: TRY 28,500 + 20% of the excess
- TRY 400,001 – 1,500,000: TRY 70,500 + 27% of the excess
- TRY 1,500,001 – 5,300,000: TRY 367,500 + 35% of the excess
- TRY 5,300,001 and above: TRY 1,697,500 + 40% of the excess
These brackets are applied cumulatively throughout the year as income accrues.
Income Tax Brackets for Non-Wage Income – 2026
For income other than wages, a slightly different tariff applies:
- TRY 0 – 190,000: 15%
- TRY 190,001 – 400,000: TRY 28,500 + 20% of the excess
- TRY 400,001 – 1,000,000: TRY 70,500 + 27% of the excess
- TRY 1,000,001 – 5,300,000: TRY 232,500 + 35% of the excess
- TRY 5,300,001 and above: TRY 1,737,500 + 40% of the excess
This distinction is particularly important for individuals with mixed income sources.
Impact on Net Salary and Employer Costs
The combined effect of:
- Higher exemption limits
- Updated disability deductions
- Progressive tax brackets
directly influences:
- Employees’ net take-home pay
- Employers’ payroll tax exposure
- Year-end tax equalization calculations
Employers who actively manage these parameters can improve compensation efficiency while remaining fully compliant.
Importance for Foreign Employers and EOR Models
Foreign companies employing staff in Turkey—either through local entities or Employer of Record (EOR) arrangements—must strictly follow these updated parameters.
Common compliance risks include:
- Using outdated exemption thresholds
- Incorrect tax bracket application
- Payroll systems not aligned with local regulations
Accurate application of Communiqué No. 332 is essential for risk mitigation.
Access to the Official Communiqué
You can access Income Tax General Communiqué No. 332 via the official link.
(Document available in Turkish)
Need Further Assistance?
If you have questions regarding:
- Payroll calculations for 2026
- Income tax exemptions
- Employee benefit structuring
- EOR or HR compliance in Turkey
Please contact your customer representative for personalized support.
The 2026 First-Period legal payroll updates introduced under Income Tax General Communiqué No. 332 significantly shape Turkey’s income tax and payroll landscape. From meal and transportation exemptions to disability deductions and revised tax brackets, these parameters are central to accurate salary calculations and compliance.
For employers operating in Turkey, staying aligned with these updates is not optional—it is a core requirement for legal certainty, financial accuracy, and sustainable workforce management in 2026.