5 tax brackets (Gelir Vergisi) with different thresholds for employment vs self-employment
Turkey's hidden trap: self-employed face higher taxes than employees at the same income—the 35% bracket starts at ₺1,000,000 for freelancers vs ₺1,500,000 for wage earners. A ₺500,000 earner (~$15,000 USD) pays roughly ₺75,000 in Gelir Vergisi. The 25.49% bracket inflation adjustment for 2026 helps combat Turkey's high inflation, but the 40% top rate hits at ₺5.3 million (~$150,000 USD).
Turkey applies a progressive income tax system called Gelir Vergisi with 5 brackets ranging from 15% to 40% for 2026. The brackets were updated by 25.49% for inflation in the Income Tax General Communiqué No. 332. Key differences exist between employment income (wage earners) and self-employment income, with self-employed facing lower thresholds for higher rates. Residents are taxed on worldwide income while non-residents pay only on Turkish-sourced earnings. Use our calculator to estimate your Turkish tax liability.
| Taxable Income | Tax Rate |
|---|---|
| ₺0 - ₺190,000 | 15% |
| ₺190,001 - ₺400,000 | 20% |
| ₺400,001 - ₺1,500,000 | 27% |
| ₺1,500,001 - ₺5,300,000 | 35% |
| Over ₺5,300,000 | 40% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
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Get Paid as a Contractor →Turkey has 5 income tax brackets for 2026: 15% on income up to ₺190,000, 20% on ₺190,001-₺400,000, 27% on ₺400,001-₺1,500,000, 35% on ₺1,500,001-₺5,300,000, and 40% on income over ₺5,300,000. These thresholds were increased by 25.49% from 2025 for inflation.
The annual income tax return deadline in Turkey is March 31, 2026 for the 2025 tax year. Wage earners whose cumulative tax base exceeds ₺5,300,000 or who have multiple employers with income over ₺400,000 from the second employer must file a return. Self-employed individuals file regardless of income level.
Foreigners are taxed based on residency status. Residents (those living in Turkey for more than 183 days in a calendar year) are taxed on worldwide income. Non-residents are taxed only on Turkish-sourced income. Turkey has tax treaties with many countries to avoid double taxation.
For 2026, wage earners benefit from a higher threshold for the 35% bracket (₺1,500,000) compared to self-employed individuals (₺1,000,000). This means self-employed taxpayers enter the 35% bracket earlier. The 15% and 40% thresholds are the same for both categories. Always consult GİB or a tax professional for self-employment taxation.
For 2026, rental income from residential properties up to ₺58,000 annually is exempt from income tax in Turkey. Rental income above this threshold must be reported and is subject to the standard progressive tax rates. Commercial property rental has different rules.
Last Updated: March 2026