Income tax is a type of tax levied on individual and corporate income in Turkey. Within the scope of this tax type, which incomes will be taxed and how much tax will be paid are determined by legal regulations. Income subject to income tax includes the following:
Salaries and wages: Income, salaries and wages earned by employees are subject to income tax.
Self-employment earnings: Earnings of self-employed individuals are also subject to income tax.
Commercial earnings: Earnings of companies are subject to tax.
Interest income: Interest income on bank accounts is also subject to income tax.
Rental income: Income from leasing is subject to income tax.
Income from movable capital: Income from securities such as stocks, bonds and bills are also covered by income tax.
Real estate capital income: Real estate income obtained through leasing is within the scope of income tax.
Other income: Other income, such as lottery or lottery winnings, is also covered by income tax.
Income tax is calculated based on the total income earned by the individual and is collected over a certain bracket. Detailed information on income tax brackets, which are updated every year, is available on the website of the Ministry of Finance.
In addition, there are also tax-exempt incomes among the incomes subject to income tax. These incomes include rental income up to a certain amount, income from investment funds, pensions, tax refunds, etc. Income within the scope of tax exemption is not subject to tax unless it exceeds a certain amount.
The income tax return is a type of declaration that must be submitted on a certain date each year. With the submission of this declaration, the income earned and taxes paid by the person are reported to the Ministry of Finance. Filing an income tax return is extremely important in terms of regular tax payments and preventing tax evasion.
Income Tax Rates
Income tax rates in Turkey differ according to certain income brackets. Income tax brackets are redetermined every year and the income tax brackets valid for 2024 are as follows:
2024 income tax rates and income tax brackets
Amount | Tax Rate |
Up to 110.000 TL | %15 |
TL 16,500 for TL 110,000 of TL 230,000, more | %20 |
TL 40.500 for TL 230.000 of TL 580.000 (TL 40.500 for TL 230.000 of TL 870.000 for wage income), more | %27 |
135.000 TL for 580.000 TL out of 3.000.000 TL (213.300 TL for 870.000 TL out of 3.000.000 TL for wage income), more | %35 |
982.000 TL for 3.000.000 TL of more than 3.000.000 TL (958.800 TL for 3.000.000 TL of more than 3.000.000 TL in wage income), more | %40 |
