How is income tax calculated?
Personal income tax in Türkiye is calculated using a progressive tariff. The annual taxable income is divided into brackets, and each bracket is taxed only at its own rate. As a result, when taxable income moves into a higher bracket, the entire amount is not taxed at the higher rate; only the part that exceeds the threshold is taxed at the new rate. The sum of the tax calculated for each bracket is the computed income tax. The tool shows the taxable amount and the tax for each bracket in a table.
Legal basis
The tariff is set out in Income Tax Law No. 193 (GVK), Article 103. The rates are 15%, 20%, 27%, 35% and 40%. Under Article 123 of the same Law, the bracket amounts are increased each year by the revaluation rate announced under the Tax Procedure Law (VUK). The upper limit of the third bracket differs between employment income and non-employment income (such as business profits, self-employment earnings and rental income); by selecting the income type in the tool, you can apply the correct tariff. The tariffs for the years 2022–2026 are included in the tool.
Worked example
For the year 2026, the tax on 1,200,000 TL of non-employment taxable income is calculated as follows: 15% on the first 190,000 TL (28,500 TL), 20% on the portion between 190,000 and 400,000 TL (42,000 TL), 27% on the portion between 400,000 and 1,000,000 TL (162,000 TL), and 35% on the remaining 200,000 TL (70,000 TL). The total income tax is 302,500 TL, and the average rate is approximately 25.2%. Note that the average rate is well below the 35% marginal rate that applies to the last portion of income.
For employees, monthly withholdings are calculated on the cumulative taxable income for the year; you can follow this month by month in the gross-to-net salary calculator.