Employment Tax

Türkiye | Tax updates for 2025: key thresholds and tax bracket updates

Summary

Several important updates regarding tax thresholds and brackets have been announced for 2025.

The detail

Tax brackets for 2025

The tax brackets below will be applied for 2025 employment income and other types of income.

Tax Brackets for Employment Income	Tax Rate
Up to TRY 158.000	15%
Up to TRY 330.000; TRY 23.700 for the first TRY 158.000, any amount exceeding	20%
Up to TRY 1.200.000; TRY 58.100 for the first TRY 330.000, any amount exceeding	27%
Up to TRY 4.300.000; TRY 293.000 for the first TRY 1.200.000, any amount exceeding	35%
**Above TRY 4.300.000; TRY 1.378.000 for the first TRY 4.300.000, any amount exceeding	40%
Tax Brackets for Other Types of Incomes	Tax Rate
Up to TRY 158.000	15%
Up to TRY 330.000; TRY 23.700 for the first TRY 158.000, any amount exceeding	20%
Up to TRY 800.000; TRY 58.100 for the first TRY 330.000, any amount exceeding	27%
Up to TRY 4.300.000; TRY 185.000 for the first TRY 800.000, any amount exceeding	35%
**Above TRY 4.300.000; TRY 1.410.000 for the first TRY 4.300.000, any amount exceeding	40%

Updates on various exemptions and declaration thresholds

1. Exemption for Rental IncomeTRY 47.000 rents of housing rental income to be obtained in 2025 is exempt from income tax. However, the exemption will be applicable if the sum of all revenues (employment income, rents, interest, dividends etc.) earned during the year is not exceeds the 3 rd tax bracket (800.000 TRY). Otherwise, the total amount of the rental income would be taxable.

2. Exemption for Food AllowanceThe portion of the allowance provided to employees in cash, ticket, or voucher, which does not exceed TRY 240, is exempted from income tax. Any amount above this threshold will be subject to taxation.

3. Exemption for Transportation AllowanceThe exemption amount for the benefits provided by the employers for the transportation to go to and from the workplace is TRY 126.

4. Declaration threshold for income from movable assetsThe declaration threshold for income from movable assets that are not subject to withholding or exempted is TRY 18.000.

5. Declaration threshold for employment income subject to withholdingThe declaration threshold for employment income subject to withholding is updated to TRY 4.300.000.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Cumhur Dülger
Partner

Münevver Gaynetullah
Senior Consultant

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