Turkey Tax Rates 2026: Income Tax, Corporate Tax, VAT and Capital Gains

Turkey Personal Income Tax Rates - 2026

Turkey applies a progressive income-tax tariff. For 2026 income, the rates range from 15% to 40%. The third-bracket threshold is higher for employment income than for other taxable income.

Employment income is generally subject to withholding by the employer on a cumulative basis. Annual-return requirements depend on the amount and source of income and whether income was received from one or more employers.

Corporate Income Tax Rates in Turkey - 2026

The standard corporate income-tax rate for 2026 accounting periods is 25%. The earlier 20% rate shown on the historical page is no longer the general current rate.

Resident companies are generally taxed on worldwide income, while non-resident companies are generally taxed on Turkish-source income attributable under the limited-taxpayer rules.

VAT Rates in Turkey

The standard Turkish VAT rate is 20%. Reduced rates of 10% and 1% apply to goods and services specifically included in the relevant lists. The applicable rate depends on the legal classification of the supply.

Dividend Withholding Tax

Dividend distributions by Turkish resident companies are generally subject to 15% withholding tax following the applicable Presidential Decision effective from 22 December 2024. For resident individual shareholders, one-half of qualifying dividends from fully liable Turkish corporations is generally exempt from personal income tax, subject to annual-return thresholds and credit for withholding. Tax treaties may reduce withholding for qualifying non-resident recipients.

Non-Resident Taxation in Turkey

Individuals who are limited taxpayers are generally taxable only on income and gains derived in Turkey. The tax treatment depends on the category of Turkish-source income and whether withholding is final or an annual/special return is required.

Non-resident companies with neither legal seat nor business centre in Turkey are generally taxed only on specified Turkish-source income. Applicable double tax agreements may modify domestic-source and withholding rules.

Capital Gains Tax in Turkey

Turkey does not impose a single separate capital-gains tax. Taxable gains are generally dealt with under the individual or corporate income-tax rules.

For individuals, the 2026 exemption for qualifying appreciation gains under Article 80 of the Income Tax Law is TRY 150,000. This annual exemption does not apply to gains from the disposal of securities and other capital-market instruments covered by the statutory exclusion.

Qualifying disposals of certain real property and rights may give rise to taxable appreciation gains when disposed of within the statutory holding period. Property acquired by inheritance or other gratuitous transfer is generally outside the appreciation-gain rules. Cost indexation may apply where the statutory producer-price-index increase condition is satisfied.

Inheritance and Gift Tax Rates in Turkey - 2026

Inheritance and gift tax is progressive. For 2026, the official tariff is:

For 2026, the exemption for inheritance shares passing to each child (including adopted children) and spouse is TRY 2,907,136; where the surviving spouse is the sole heir, the exemption is TRY 5,817,845. The general exemption for qualifying gratuitous transfers is TRY 66,935. The tax is generally paid in six equal instalments over three years, in May and November.

Turkey Tax Return Filing and Payment Deadlines

The tax year for individuals is generally 1 January to 31 December. Income subject to annual declaration is generally reported during March of the following year. For example, 2025 income was required to be declared between 1 and 31 March 2026, with tax payable in two equal instalments by 31 March and 31 July 2026.

For companies using the calendar year, the corporate income-tax return for 2025 was due between 1 and 30 April 2026, with payment by 30 April 2026. Companies with a special accounting period file by the end of the fourth month following the close of that period.

Official Turkey Tax Resources

• Republic of Türkiye Revenue Administration (Gelir İdaresi Başkanlığı)
• Revenue Administration - Employment Income and 2026 Personal Income Tax Tariff
• Revenue Administration - Corporate Income Tax Rates
• Revenue Administration - Appreciation Gains and Other Income
• Revenue Administration - Inheritance and Gift Tax
• Revenue Administration - Tax Calendar
• Revenue Administration - Tax Legislation

This is a general tax-rate overview. For a specific transaction, confirm the current Income Tax Law, Corporate Tax Law, VAT Law, communiqués, Presidential Decisions and any applicable double tax agreement.