Turkey (TR)

Turkey is a transcontinental nation straddling Europe and Asia across the Bosphorus Strait, uniting 85 million people under a rich civilisational heritage stretching from the ancient Hittites and Romans to the Byzantine Empire and Ottoman Empire.

Capital: Ankara

Region: Europe

Language: Turkish

Currency: TRY (₺)

Cost of living: Very affordable (index 35)

Emergency: 112

Tax & Payslip Guide

Understanding your taxes in Turkey — tax year Calendar year (1 January – 31 December).

📅

Tax Year

Calendar year (1 January – 31 December)

⏰

Filing Deadline

Salaried employees: employer withholds tax monthly (stopaj) and no individual return is usually needed if employed by a single employer with no other income. Self-employed, multiple income sources, or foreign income: annual income tax return (Yıllık Gelir Vergisi Beyannamesi) must be filed by 31 March for the previous calendar year. Tax can be paid in two equal instalments: 31 March and 31 July. File via e-Beyanname (online system at gib.gov.tr) with VKN and e-Devlet access.

🧾

VAT (Standard)

20% (standard KDV — Katma Değer Vergisi — increased from 18% in 2023)

📊 Income Tax Brackets

Income from	Income to	Rate	Notes
0	190,000	15%	First bracket: annual income up to TRY 190,000 (2026, per Income Tax General Communiqué No. 332, 31 December 2025). Rate is 15%. Note: TRY tax bands are re-indexed to inflation annually — with Turkey's ~20–25% adjustment for 2026, bands shifted significantly from 2025 values. Always verify current bands at gib.gov.tr.
190,001	400,000	20%	Second bracket: TRY 190,001 to TRY 400,000 annual income (2026 bands). Rate is 20%.
400,001	1,500,000	27%	Third bracket: TRY 400,001 to TRY 1,500,000 annual income (2026). Rate is 27%.
1,500,001	5,300,000	35%	Fourth bracket: TRY 1,500,001 to TRY 5,300,000 annual income (2026). Rate is 35%.
5,300,001	∞	40%	Top bracket: above TRY 5,300,000 annual income (2026). Maximum rate is 40%. Tax bands are re-indexed annually for inflation — always verify current year thresholds at gib.gov.tr.

🏛️ Social Contributions

SGK Prim — Emeklilik (Pension Contribution)

Employee: 9% of gross salary (employee)

Employer: 12% of gross salary (employer — raised from 11% effective 1 January 2026 under Law No. 7566)

Social Security Institution (SGK) pension insurance contribution. Employee pays 9%, employer pays 12% of gross salary (2026). Calculated on the monthly premium base (prime esas kazanç). There is a contribution ceiling (upper earnings limit — tavan) adjusted monthly. These contributions accrue pension rights in the Turkish state pension system (SGK Emeklilik).

SGK Prim — Sağlık (Health Insurance — GSS)

Employee: 5% of gross salary (employee)

Employer: 7.5% of gross salary (employer)

Genel Sağlık Sigortası (GSS — General Health Insurance) contribution. Employee pays 5%, employer pays 7.5% of gross salary. Provides access to the Turkish public healthcare system for the employee and dependents. Without GSS, access to public hospitals requires out-of-pocket payment or private insurance.

SGK Prim — İşsizlik (Unemployment Insurance)

Employee: 1% of gross salary (employee)

Employer: 2% of gross salary (employer)

İşsizlik Sigortası (Unemployment Insurance) contribution. Employee 1%, employer 2%. Managed by İŞKUR (Turkish Employment Agency). After qualifying period (600 days premium payment), unemployed workers receive İşsizlik Ödeneği (unemployment benefit) at 40% of average daily earnings for 8 months.

Damga Vergisi (Stamp Duty on Employment Contracts)

Employee: 0.759% of gross monthly salary

Employer: N/A

Stamp duty (damga vergisi) is deducted from employee salary on employment contracts. Rate: 0.759% of gross monthly earnings. A small but notable deduction that appears on Turkish payslips.

🛒 VAT Rates

20% (standard KDV — Katma Değer Vergisi — increased from 18% in 2023)

Standard

10% reduced rate applies to: food (some categories), accommodation, restaurant services, agricultural products, passenger transport, medical services and equipment, cinema/theatre tickets

Reduced

1% super-reduced rate applies to basic food staples: bread, flour, sugar, milk, eggs, fresh fruit and vegetables (unprocessed), and some agricultural inputs

Super reduced

Turkey increased its standard VAT rate from 18% to 20% in July 2023 as part of fiscal tightening. KDV is always included in displayed prices (KDV dahil). VAT returns filed monthly or quarterly depending on business size. KDV threshold for mandatory registration: TRY 500,000+ annual turnover (adjusted periodically). All prices shown to consumers must be KDV-inclusive.

🧾 Sample Payslip Decoder

Gross Salary TRY 50,000/month

Brüt Maaş (Gross salary) + TRY 50,000

SGK İşçi Payı - Emeklilik (9%) - -TRY 4,500

SGK İşçi Payı - Sağlık/GSS (5%) - -TRY 2,500

İşsizlik Sigortası İşçi Payı (1%) - -TRY 500

Damga Vergisi (Stamp duty 0.759%) - -TRY 379.50

Gelir Vergisi (Income tax — cumulative bracket) - -TRY 8,500

Net Salary (Take-home) TRY 33,621/month

Note: TRY purchasing power changes rapidly — TRY 50,000 gross in 2026 is equivalent to approximately €1,400 but this changes monthly with exchange rate movements. Turkey's minimum wage (asgari ücret) is approximately TRY 22,000–23,000 net/month in 2026 (adjusted semi-annually). Employer total cost on TRY 50,000 gross: additionally pays SGK employer portion 20.5% (≈TRY 10,250) + employer unemployment 2% (≈TRY 1,000), making total employer cost approximately TRY 61,250/month. Income tax calculated cumulatively through the year — higher rates apply in later months of year as cumulative income crosses brackets. TRY amounts must be considered with exchange rate context — always verify current rates.

🌍 Special Expat Tax Rules

Turkey offers a significant tax advantage for expats with foreign-source income: if you receive income from abroad (e.g., remote work for a foreign employer, foreign investments, foreign rental income) AND you do NOT bring that income into Turkey (i.e., it stays in foreign bank accounts), it is generally not subject to Turkish income tax. This makes Turkey highly attractive for digital nomads and remote workers. The 183-day rule applies for tax residency: residing in Turkey for more than 183 days in a calendar year makes you a Turkish tax resident liable on worldwide income — but the foreign-source income exemption remains where income is kept abroad. Additionally, Turkey has signed double taxation treaties (Çifte Vergilendirmeyi Önleme Anlaşması) with over 80 countries. There is no wealth tax, no inheritance tax threshold equivalent to Western Europe, and stamp duty is minimal. Consult a Turkish tax advisor (mali müşavir) for your specific situation.

📋 Double Tax Treaties

Turkey has bilateral double taxation agreements with over 80 countries including: Germany, UK, Netherlands, France, USA (limited treaty), Russia, China, Saudi Arabia, UAE, Japan, South Korea, Canada, Australia, India, Italy, Spain, and all EU member states. Turkey uses the OECD model convention. For expats: the key provision is that foreign employment income is often exempt from Turkish tax if tax is paid in the source country. Dividend, interest, and royalty withholding tax rates vary by treaty (typically 10–15%). Check gib.gov.tr for the complete list.

Gelir İdaresi Başkanlığı (GİB — Revenue Administration)

https://www.gib.gov.tr

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