This article provides a clear overview of income tax in Türkiye, explains how tax brackets function, outlines the 2026 tax rates, and describes how income tax is calculated in practice.
Taxes are one of the fundamental instruments used by governments to finance public services, support social welfare, and maintain economic stability. In Türkiye, income tax is applied through a progressive taxation system, meaning that individuals with higher earnings are subject to higher tax rates.
Each year, tax brackets are revised to reflect economic conditions, inflation, and fiscal policy goals. For employees, employers, and self-employed individuals alike, the 2026 income tax brackets are among the most closely followed financial updates. Understanding how these brackets work is essential for accurate tax planning and avoiding unexpected liabilities.
Understanding Income Tax in Türkiye
Income tax in Türkiye is governed by Income Tax Law No. 193 and applies to individuals who earn income within a given calendar year. The law defines income broadly, covering multiple sources rather than just wages.
Income subject to taxation includes:
- Commercial profits
- Agricultural income
- Salaries and wages
- Self-employment and professional earnings
- Rental income from real estate
- Investment income from movable capital
- Other miscellaneous income and gains
Income tax is calculated based on the total annual income, and the tax rate increases as income rises. This progressive structure is designed to promote fairness by placing a greater tax burden on those with higher earning capacity.
Revenue collected through income tax is used to fund public services such as healthcare, education, infrastructure, and social security systems.
What Does “Tax Bracket” Mean?
A tax bracket refers to a specific income range to which a particular tax rate applies. Instead of taxing the entire income at a single rate, Türkiye uses a graduated system, where different portions of income are taxed at different rates.
As income increases:
- The portion of income within the lower bracket is taxed at a lower rate
- Only the amount exceeding each threshold is taxed at the higher rate
This method ensures that taxpayers are not penalized for moving into a higher income range, while still preserving equity within the tax system.
Being aware of tax brackets helps individuals:
- Forecast their net income
- Plan salary increases or bonuses
- Manage year-end tax exposure
When and How Is Income Tax Paid?
The timing and method of income tax payment depend on the nature of the income earned.
Salaried Employees
For employees, income tax is generally withheld at source. Employers calculate and deduct the tax directly from monthly salaries and report it to the tax authorities through withholding declarations.
Other Income Earners
Individuals who earn income outside of wages—such as rental or professional income—must file an annual income tax return.
Income Tax Declaration and Payment Timeline
Annual Income Tax Return
- Submitted between 1 March and 31 March of the year following the income year
- Covers all taxable income earned in the previous calendar year
Payment of Declared Tax
- Paid in two equal installments
- First installment: March
- Second installment: July
Meeting these deadlines is essential to avoid penalties and late payment interest.
2026 Income Tax Brackets in Türkiye
For the 2026 calendar year, income tax rates remain progressive, with different brackets applying depending on whether the income is derived from wages or non-wage sources.
Income Tax Brackets for Wage Earners – 2026
| Income Range (TRY) | Tax Rate | Tax Calculation |
|---|---|---|
| 0 – 190,000 | 15% | 15% of income |
| 190,001 – 400,000 | 20% | TRY 28,500 + 20% of the excess |
| 400,001 – 1,500,000 | 27% | TRY 70,500 + 27% of the excess |
| 1,500,001 – 5,300,000 | 35% | TRY 367,500 + 35% of the excess |
| 5,300,001 and above | 40% | TRY 1,697,500 + 40% of the excess |
Income Tax Brackets for Non-Wage Income – 2026
| Income Range (TRY) | Tax Rate | Tax Calculation |
|---|---|---|
| 0 – 190,000 | 15% | 15% of income |
| 190,001 – 400,000 | 20% | TRY 28,500 + 20% of the excess |
| 400,001 – 1,000,000 | 27% | TRY 70,500 + 27% of the excess |
| 1,000,001 – 5,300,000 | 35% | TRY 232,500 + 35% of the excess |
| 5,300,001 and above | 40% | TRY 1,737,500 + 40% of the excess |
The distinction between wage and non-wage income brackets is particularly important for individuals with multiple income sources.
How Is Income Tax Calculated?
Income tax calculation follows a step-by-step process based on total annual earnings.
Step 1: Calculate Total Annual Income
All income earned during the year—such as salaries, rent, or professional fees—is aggregated to determine gross annual income.
Step 2: Apply Tax Brackets
The total income is split across the applicable tax brackets. Each portion is treated separately.
Step 3: Apply Relevant Tax Rates
Each income segment is multiplied by the tax rate corresponding to its bracket.
Step 4: Sum the Tax Amounts
The tax amounts calculated for each bracket are added together to determine the total income tax payable.
This method ensures that higher tax rates apply only to the portion of income exceeding each threshold, not to the entire income.
When Do Tax Brackets Reset?
Income tax brackets in Türkiye are applied on a cumulative annual basis. As income accumulates throughout the year, taxpayers may move into higher brackets.
However, at the beginning of each new calendar year:
- Cumulative income is reset to zero
- Taxation starts again from the lowest bracket
- New income is taxed according to the updated annual brackets
This reset is particularly noticeable for employees whose tax deductions decrease at the start of the year and increase again as income accumulates.
The 2026 income tax brackets in Türkiye continue to reflect a progressive taxation approach designed to balance fairness and fiscal responsibility. Whether you are an employee, a self-employed professional, or an investor with multiple income streams, understanding how tax brackets operate is essential for effective financial planning.
By knowing how income is categorized, how tax rates are applied, and when brackets reset, taxpayers can better anticipate their obligations and manage their cash flow throughout the year.
Staying informed with our team about annual tax updates remains one of the most practical ways to ensure compliance and avoid surprises in Türkiye’s evolving tax landscape.