Circular
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The income tax brackets for income earned in the 2026 calendar year, and the amounts for exemptions, deductions and filing thresholds in the Income Tax Law, have been reset by Income Tax General Communiqué No. 332. The amounts have been updated using the 2025 revaluation rate of 25.49% and have applied since 01.01.2026.
Separate brackets apply to employment income and to other income. The only difference between the two lies in the limits of the third and fourth brackets.
| Income other than employment income | Rate |
|---|---|
| Up to TRY 190,000 | 15% |
| TRY 28,500 for the first TRY 190,000 of TRY 400,000, excess | 20% |
| TRY 70,500 for the first TRY 400,000 of TRY 1,000,000, excess | 27% |
| TRY 232,500 for the first TRY 1,000,000 of TRY 5,300,000, excess | 35% |
| TRY 1,737,500 for the first TRY 5,300,000 of income above TRY 5,300,000, excess | 40% |
| Employment income | Rate |
|---|---|
| Up to TRY 190,000 | 15% |
| TRY 28,500 for the first TRY 190,000 of TRY 400,000, excess | 20% |
| TRY 70,500 for the first TRY 400,000 of TRY 1,500,000, excess | 27% |
| TRY 367,500 for the first TRY 1,500,000 of TRY 5,300,000, excess | 35% |
| TRY 1,697,500 for the first TRY 5,300,000 of income above TRY 5,300,000, excess | 40% |
| Subject | 2026 amount |
|---|---|
| Meal allowance paid outside the workplace (daily, Income Tax Law 23/8) | TRY 300 |
| Transport benefit provided by public transport card, ticket or cash (daily) | TRY 158 |
The part of meal and transport allowances above these amounts is taxed as wages. Please note that these exemptions have separate limits for SGK earnings subject to premium.
| Degree of disability | Monthly deduction |
|---|---|
| First degree | TRY 12,000 |
| Second degree | TRY 7,000 |
| Third degree | TRY 3,000 |
| Subject | 2026 amount |
|---|---|
| Residential rental income exemption (Income Tax Law art. 21) | TRY 58,000 |
| Occasional income exemption (Income Tax Law art. 82) | TRY 350,000 |
| Exemption for capital gains on the sale of real estate (Income Tax Law repeated art. 80) | TRY 150,000 |
| Filing threshold for income from movable and immovable capital not subject to withholding or exemption (Income Tax Law art. 86) | TRY 22,000 |
If total employment income received from a single employer and taxed by withholding exceeds TRY 5,300,000, the fourth bracket limit, this income must be declared on an annual return. If wages are received from more than one employer, a filing obligation arises when the total wages received from employers other than the first exceed TRY 400,000, the second bracket limit.
| Subject | 2026 limit |
|---|---|
| Monthly rent for a leased passenger car | TRY 46,000 |
| Depreciable amount (excluding ÖTV and VAT) | TRY 1,380,000 |
| Total ÖTV and VAT that can be expensed | TRY 1,200,000 |
| Depreciable amount (where ÖTV and VAT are added to cost, or for vehicles not acquired new) | TRY 2,600,000 |
These limits apply to passenger cars acquired or leased in 2026; for vehicles acquired in earlier years, the limits in force in the year of acquisition continue to apply.
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This circular is for general information only. Please contact us about your specific situation. The Turkish original is available here.
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