The income tax regime in Turkey for 2026 has been formally established in accordance with Article 103 of the Turkish Income Tax Law (GVK). This framework sets out how personal income—most notably salary and wage income—is taxed through a progressive bracket system, where higher portions of income are taxed at higher rates.
Having a clear understanding of the Income Tax 2026 Turkey structure is crucial for employees, employers, HR and payroll teams, and international companies running local payroll operations. These tax brackets directly influence take-home pay, payroll budgeting, and cumulative tax exposure over the course of the year.
This guide breaks down the 2026 income tax brackets in Turkey, explains how they function in practice, and places them in context by comparing them with previous years.
How the Income Tax System Works in Turkey
Turkey uses a progressive income tax model, meaning income is taxed in layers rather than at a single flat rate. Each portion of income is taxed at the rate assigned to its corresponding bracket, rather than applying one rate to the entire income.
The income tax tariff applies broadly to:
- Employees earning salaries or wages
- Self-employed individuals
- Freelancers and independent professionals
However, an important distinction exists at higher income levels: salary income benefits from higher thresholds than non-wage income in the upper brackets. This difference is particularly relevant for senior executives and high earners.
Income Tax 2026 Turkey: Official Brackets for Employees
For the 2026 tax year, the income tax brackets applicable to wage earners are structured as follows:
Income Tax Brackets for Salaries – 2026
- Up to 190,000 TRY
→ Taxed at 15% - 190,001 TRY – 400,000 TRY
→ 28,500 TRY on the first 190,000 TRY
→ 20% on the remaining amount - 400,001 TRY – 1,500,000 TRY (salary income)
→ 70,500 TRY on the first 400,000 TRY
→ 27% on the excess - 1,500,001 TRY – 5,300,000 TRY (salary income)
→ 367,500 TRY on the first 1,500,000 TRY
→ 35% on the excess - Above 5,300,000 TRY (salary income)
→ 1,697,500 TRY on the first 5,300,000 TRY
→ 40% on the remaining portion
These brackets are applied progressively and cumulatively as income increases throughout the year.
What’s New in 2026?
One of the most notable changes in Income Tax 2026 Turkey is the substantial upward revision of income thresholds across all brackets. This adjustment reflects several economic realities:
- Persistent inflation
- Rising salary levels
- A policy objective to reduce “bracket creep” for middle-income earners
Despite the higher thresholds, the maximum marginal tax rate remains unchanged at 40%, preserving the overall progressive nature of the system.
Comparing Income Tax 2026 and 2025
A comparison with the previous year helps illustrate how the system has evolved.
Key Points from 2025
- The lowest tax bracket capped at 158,000 TRY
- The highest tax bracket applied above 4,300,000 TRY
- A 40% top marginal rate already in force
What Changed in 2026
- The first bracket expanded to 190,000 TRY
- All upper thresholds shifted upward
- Tax rates stayed the same but apply at higher income levels
As a result, many employees will enter higher tax brackets later in the year compared to 2025.
Long-Term Trends in Turkey’s Income Tax Brackets (2013–2026)
Over the past decade, Turkey has regularly updated its income tax brackets. Rather than abrupt changes, the system has evolved gradually.
Key Trends Over Time
- 2013–2017
- Entry-level tax brackets between 10,700 TRY and 13,000 TRY
- Maximum rate capped at 35%
- 2018–2020
- Steady expansion of income thresholds
- Continued use of a multi-tier bracket system
- 2021
- Introduction of the 40% top tax rate
- 2022–2024
- Sharp threshold increases driven by inflation
- Distinct treatment for salary income at higher levels
- 2025–2026
- Significant upward adjustment of all brackets
- Stronger alignment with inflation while preserving progressivity
This history shows that the Income Tax 2026 Turkey structure is the outcome of ongoing policy adjustments rather than a one-off reform.
Why Income Tax Brackets Matter for Employees
For employees, income tax brackets have a direct impact on:
- Monthly net salary
- Total tax paid by year-end
- Taxation of bonuses, incentives, and premiums
- Treatment of overtime and additional income
Employees whose earnings are close to bracket thresholds may notice changes in net pay during the year as cumulative income moves into higher brackets.
Payroll and Employer Considerations
From the employer’s standpoint, the 2026 income tax framework affects:
- Payroll withholding accuracy
- Gross-to-net salary calculations
- Executive compensation planning
- Expatriate and cross-border payroll structures
Although income tax is legally borne by the employee, employers are responsible for correct withholding. Errors can result in penalties and back payments, making precise application of the tax brackets essential.
Salary Income vs. Other Types of Income
A notable feature of the 2026 system is that wage income benefits from more favorable upper thresholds compared to non-wage income. This provides a degree of protection for salaried employees, particularly those in senior roles.
This distinction is especially relevant for:
- Individuals with multiple income sources
- Employees running side businesses
- Shareholder-employees receiving mixed income
Legal Basis and Compliance
All tax rates and brackets referenced in this article are based on:
- Turkish Income Tax Law (GVK), Article 103
- Official annual income tax tariff announcements
Both employers and individuals should rely on official publications and professional tax advice when applying income tax calculations.
Income Tax 2026 Turkey: The Bigger Picture
The Income Tax 2026 Turkey framework raises income thresholds while maintaining a clear progressive structure. With tax rates ranging from 15% to 40%, the system continues to place a higher burden on top earners while easing pressure on low and middle-income employees.
For companies, HR teams, and international investors, a solid understanding of the 2026 tax brackets is essential for:
- Accurate payroll processing
- Reliable cost forecasting
- Ongoing legal compliance
For employees, knowing how cumulative income is taxed helps avoid unexpected deductions and supports better financial planning.
For further guidance or tailored payroll and tax support, please feel free to contact our team.