Income Tax 2026 Turkey

The Income tax 2026 Turkey framework has been officially defined under Article 103 of the Turkish Income Tax Law (GVK). The income tax tariff determines how individual earnings—particularly employment income (salaries and wages)—are taxed based on progressive income brackets.

Understanding the 2026 income tax brackets in Turkey is essential for employees, employers, payroll professionals, HR departments, and foreign companies managing local payroll. These tax rates directly affect net salaries, employer payroll planning, and year-end tax exposure.

This article explains the Income tax 2026 Turkey brackets in detail and provides a clear comparison with previous years to highlight how the Turkish income tax system has evolved.

Income Tax System in Turkey: A Brief Overview

Turkey applies a progressive income tax system, meaning that income is taxed at increasing rates as earnings rise. Different brackets apply to different portions of income, not to the total income at once.

The income tax tariff applies to:

Salaried employees (wage earners)
Self-employed individuals
Professionals and freelancers

However, wage income thresholds differ slightly from non-wage income at higher brackets, which is particularly important for high-income earners and executives.

Income Tax 2026 Turkey – Official Tax Brackets (Wage Earners)

For the 2026 calendar year, the income tax brackets applicable to employees (salary income) are as follows:

📊 Income Tax Brackets – 2026

Up to 190,000 TRY:
15%
From 190,001 TRY to 400,000 TRY:
28,500 TRY for the first 190,000 TRY,
20% on the excess
From 400,001 TRY to 1,500,000 TRY (wage income):
70,500 TRY for the first 400,000 TRY,
27% on the excess
From 1,500,001 TRY to 5,300,000 TRY (wage income):
367,500 TRY for the first 1,500,000 TRY,
35% on the excess
Above 5,300,000 TRY (wage income):
1,697,500 TRY for the first 5,300,000 TRY,
40% on the excess

These brackets define the Income tax 2026 Turkey structure and apply cumulatively throughout the year as income increases.

What Changed ?

Compared to previous years, the 2026 income tax thresholds have increased significantly. This adjustment reflects:

Inflationary pressure
Rising wage levels
The need to protect middle-income earners from bracket creep

Despite these increases, the top marginal tax rate remains at 40%, maintaining Turkey’s long-standing progressive structure.

Income Tax 2026 Turkey vs. 2025

To better understand the evolution, below is a simplified comparison between 2026 and 2025 income tax brackets for wage earners.

2025 Highlights:

First bracket up to 158,000 TRY taxed at 15%
Top bracket began above 4,300,000 TRY
40% marginal rate already in place

2026 Highlights:

First bracket expanded to 190,000 TRY
Higher thresholds at every income level
Same marginal rates, but applied later in the income scale

This means that employees earning moderate salaries will reach higher tax rates later in the year under the Income tax 2026 Turkey system.

Historical Evolution of Income Tax Brackets in Turkey (2013–2026)

Over the last decade, Turkey’s income tax brackets have been revised almost every year. Below is a summarized historical overview showing the structural trend rather than raw figures.

Key Observations:

2013–2017:
Lowest tax bracket ranged between 10,700 TRY and 13,000 TRY
Top rate capped at 35%
2018–2020:
Gradual expansion of tax brackets
Continued use of four-tier structure
2021:
Introduction of the 40% tax bracket for the first time
2022–2024:
Rapid increases in income thresholds due to inflation
Wage earners received differentiated upper limits
2025–2026:
Major upward adjustment of all thresholds
Retention of progressive structure with stronger inflation alignment

This progression clearly shows how the Income tax 2026 Turkey framework is the result of long-term structural adaptation rather than a sudden change.

Why it is Turkey Matters for Employees

For employees, income tax brackets affect:

Monthly net salary
Year-end cumulative tax burden
Bonus and premium taxation
Overtime and additional income treatment

Employees earning close to bracket limits may experience net salary fluctuations during the year as they move into higher tax brackets.

Employer and Payroll Impact

From an employer’s perspective, this tax structure influences:

Payroll calculations
Salary gross-up planning
Executive compensation strategies
Expatriate payroll structuring

While income tax itself is borne by the employee, incorrect withholding exposes employers to penalties, making accurate application of brackets critical.

Wage Earners vs. Other Income Types

A key detail regarding this year is that wage income enjoys higher thresholds at upper brackets compared to non-wage income. This provides partial protection for salaried employees, especially executives and senior professionals.

This distinction becomes particularly important for:

Dual-income individuals
Employees with side business income
Shareholder-employees

Compliance and Legal Basis

All income tax brackets mentioned in this article are based on:

Turkish Income Tax Law (GVK), Article 103
Official annual tax tariff announcements

Employers and individuals should always rely on official publications and professional tax advice when applying income tax calculations.

Income Tax 2026 Turkey in Perspective

The Income tax 2026 Turkey tariff introduces higher income thresholds while preserving Turkey’s progressive taxation model. With rates ranging from 15% to 40%, the system continues to place greater responsibility on high earners while easing pressure on lower and middle-income employees.

For businesses, HR teams, and foreign investors, understanding the 2026 income tax brackets in Turkey is essential for: