Turkey income tax brackets 2026 and their effect on payroll

What are the income tax brackets in Turkey for 2026?

Wage income in Turkey is taxed under a progressive scale. The rate depends on the employee's cumulative income tax base, which accumulates from January to December. For foreign companies used to flat monthly withholding tables, this is the single most important difference in Turkish payroll. The 2026 brackets for wage income are:

The last column gives a quick way to find annual calculated tax. For example, an employee with an annual cumulative base of TRY 612,000 has calculated tax of 70,500 + (612,000 - 400,000) x 27% = TRY 127,740. The minimum wage exemption applied during the year is then deducted from this amount.

The brackets and other payroll values are also listed on our payroll parameters page.

What is the cumulative tax base and how is it calculated?

The income tax base equals gross pay minus the employee share of SGK (Sosyal Güvenlik Kurumu, the Social Security Institution) contributions (14%) and the employee unemployment insurance share (1%). Each month's base is added to the previous months; it starts at zero in January and reaches the annual total in December. Tax for each month is calculated by checking which bracket that month's base falls into within the cumulative total.

A single month's base can span two brackets. In that case the part below the threshold is taxed at the old rate and the part above at the new rate. This split is where payroll software most often goes wrong.

Example: how is tax split when crossing a bracket?

An employee on TRY 60,000 gross has a monthly base of TRY 51,000. At the end of March the cumulative base is TRY 153,000. In April it rises to TRY 204,000, crossing the TRY 190,000 threshold:

How does the minimum wage exemption interact with the brackets?

Earnings equal to the minimum wage are exempt from income tax for every employee in Turkey. In practice, the tax that would be due on the minimum wage that month is deducted from each employee's calculated tax. Because the minimum wage's own cumulative base also moves into a higher bracket during the year, the exemption amount is not fixed:

The total income tax exemption over the year is TRY 57,881.23. The stamp tax exemption is TRY 250.70 per month. For minimum wage employees the exemption equals the calculated tax, so income tax payable is zero every month.

How does the tax bracket affect net pay?

For an employee on the same gross salary, net pay falls as the cumulative base crosses bracket thresholds. The table shows monthly tax and net pay through 2026 for an employee on TRY 60,000 gross:

Stamp tax of TRY 204.70 is also withheld each month. The difference between January and September net pay is TRY 4,716.23. Employees often ask why net pay falls while salary stays the same, so explaining bracket changes in advance matters, especially for expatriates.

Net pay through the year for a TRY 100,000 gross salary

At higher salaries, bracket changes happen earlier in the year. An employee on TRY 100,000 gross has a monthly base of TRY 85,000 and net pay changes as follows:

In June the cumulative base reaches TRY 510,000 and the whole monthly base falls into the 27% bracket. The small increase in July and August again comes from the rising minimum wage exemption.

In which month do different salaries enter a new bracket?

The month of the bracket change depends on gross pay. Assuming pay stays the same all year with no extra payments:

Income tax paid over the full year (after exemptions) is TRY 42,318.77 for TRY 50,000 gross, TRY 69,858.77 for TRY 60,000 gross and TRY 180,018.77 for TRY 100,000 gross. For every calculation step see our guide to calculating payroll in Turkey.

How do bonuses and premiums affect the bracket?

A one off payment increases that month's base and moves the employee into a higher bracket earlier. An employee receiving a large bonus early in the year may enter the 20% or 27% bracket in the first quarter. Total annual tax is largely unaffected by the month of payment; what changes is how the tax burden is spread across months. Bonus timing therefore affects the employee's monthly cash flow while changing the annual total only slightly.

• Calculate the cumulative base for the bonus month in advance.
• Tell the employee both the bonus net and the change in net pay for the following months.
• For bonuses promised net, gross up using that month's bracket.

How is the bracket calculated for a mid year hire?

When someone who worked for another employer earlier in the same year joins, their cumulative base from the previous employer must be carried into the new payroll. Otherwise the employee restarts at 15% and too little tax is withheld during the year. The figure is taken from the previous employer's payslip. Adding this document to the hiring paperwork makes the check easier, particularly for international hires moving between group entities in Turkey.

When do high earners reach the 35% and 40% brackets?

The rate rises to 35% when the cumulative base passes TRY 1,500,000 and to 40% above TRY 5,300,000. Only senior executives or employees receiving large premiums, bonuses or share based payments during the year reach these thresholds. Two points matter for them. First, because SGK contributions are capped at the TRY 297,270 ceiling, the tax base makes up a larger share of gross pay above the ceiling. Second, monthly withholding rises noticeably towards year end, so the drop in net pay is sharper. Giving these employees an annual net pay projection helps manage expectations, especially where packages are benchmarked against other countries.

How are the income tax brackets updated each year?

Bracket thresholds are updated every year based on the revaluation rate and are usually announced by the Revenue Administration (Gelir İdaresi Başkanlığı) in a communiqué published in December. Rates are set by law and stay the same unless separately amended. New brackets apply from January payroll. Do not enter estimated values in your payroll system before the new amounts are announced; confirm them from official sources once published.

Wage income and non wage income (for example rent or self employment) have separate tariffs with different thresholds. The values in this guide apply to wage income only. For non wage income, confirm the current tariff from official sources.

What should the payroll team check for brackets?

• Are the four thresholds (TRY 190,000, 400,000, 1,500,000, 5,300,000) and five rates (15%, 20%, 27%, 35%, 40%) set correctly?
• Does the cumulative base reset in January?
• Is the base split correctly in months that span two brackets?
• Is the minimum wage income tax exemption applied with the right amount each month?
• Has the base from the previous employer been entered for mid year hires?
• Is gross up for bonus months done using that month's bracket?
• Are employees told about bracket changes in advance?

For updating brackets and other values at year start see our new year payroll checklist, and for employer cost see our minimum wage employer cost guide.

Do income tax brackets affect employer cost?

For employees on a gross salary, income tax is borne by the employee; the employer's SGK and unemployment contributions do not depend on the bracket. For TRY 60,000 gross, employer cost is TRY 73,050.00 every month of the year for a non-manufacturing employer (19.75% employer SGK after the Treasury discount plus 2% unemployment insurance). In manufacturing the 5 point discount gives 16.75% and a cost of TRY 71,250.00; without the discount it is TRY 74,250.00. If pay was agreed in net terms, however, gross pay must rise as the bracket rises to keep the same net, and employer cost increases during the year. Employers that commit to net pay should therefore budget using the gross amount for the last months of the year. For quick comparisons use the employer cost calculator.