How income tax works in Turkey
Turkey generally taxes residents on worldwide income and non-residents on Turkish-source income only. However, from 2026, qualifying individuals who become Turkish resident after at least three prior calendar years without Turkish domicile or tax liability can receive a 20-year exemption for qualifying foreign income. Salaries, bonuses, freelance income, business profits, rent, dividends and foreign income can otherwise fall into the personal income tax system.
There is no special expatriate regime. If you work in Turkey, you usually follow the same tax rules as Turkish citizens, with residency and source-of-income determining the result.
Employment income is withheld monthly through payroll. For 2026, the salary brackets run from 15% up to 40%, with the top employment bracket starting at TRY 5,300,000.
Social security is a separate payroll cost. The general employee rate is 14% and the employer rate is 20.75%, subject to incentives and category-specific rules.
Income tax brackets in Turkey
| Bracket | Rate | Notes |
|---|---|---|
| Up to TRY 190,000 | 15% | 2026 employment income band. |
| TRY 190,000 to 400,000 | 20% | Applies after the first band. |
| TRY 400,000 to 1,500,000 | 27% | Higher band for employment income. |
| TRY 1,500,000 to 5,300,000 | 35% | Employment income bracket. |
| Over TRY 5,300,000 | 40% | Top marginal rate for 2026 employment income. |
Tax rates at a glance
- Personal income tax
- 15%-40%
- Highest bracket tax
- 40%
- Foreign income tax
- Generally taxable
- Tax on wages
- Withheld monthly
- Employee social security
- 14%
- Employer social security
- 20.75%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsInvestorsFreelancersFounders
Watch out for
- Turkey residents are generally taxed on worldwide income, so foreign dividends, interest and business income may still need reporting. A 2026 law created a 20-year foreign-income exemption for qualifying new residents, subject to its prior-residence and tax-liability conditions.
- Foreign nationals generally become tax resident after more than six months in Turkey, unless a temporary-project exception applies.
- Payroll withholding is only part of the bill. Social security, unemployment insurance and stamp tax can also apply.
Frequently asked questions
Do expats pay income tax in Turkey?
Yes, if they are tax resident or receive Turkish-source income. However, a 2026 law gives qualifying new Turkish residents a 20-year exemption for foreign income, provided they meet the statutory prior-residence and tax-liability conditions.
When do I become tax resident in Turkey?
In general, staying in Turkey for more than six months in a calendar year can make you tax resident, subject to exceptions for temporary projects and force majeure.
Do salaries get taxed through payroll?
Yes. Turkish employers withhold income tax monthly under PAYE, and employees can also see social security and unemployment insurance deductions.