Pursuant to the published Income Tax General Communiqué No. 332, the income tax brackets applicable to employees in 2026, as well as certain exemption amounts and declaration thresholds related to some types of income of individuals, have been determined.
Below mentioned tax brackets will be applied for 2026 employment income and other types of income:
| Tax brackets for employment income | Tax rate |
| Up to TRY 190.000 | 15% |
| Up to TRY 400.000; TRY 28.500 for the first TRY 190.000, any amount exceeding | 20% |
| Up to TRY 1.500.000; TRY 70.500 for the first TRY 400.000, any amount exceeding | 27% |
| Up to TRY 5.300.000; TRY 367.500 for the first TRY 1.500.000, any amount exceeding | 35% |
| **Above TRY 5.300.000; TRY 1.697.500 for the first TRY 5.300.000, any amount exceeding | 40% |
| Tax brackets for other types of incomes | Tax rate |
| Up to TRY 190.000 | 15% |
| Up to TRY 400.000; TRY 28.500 for the first TRY 190.000, any amount exceeding | 20% |
| Up to TRY 1.000.000; TRY 70.500 for the first TRY 400.000, any amount exceeding | 27% |
| Up to TRY 5.300.000; TRY 232.500 for the first TRY 1.000.000, any amount exceeding | 35% |
| **Above TRY 5.300.000; TRY 1.737.500 for the first TRY 5.300.000, any amount exceeding | 40% |
Exemption for rental income
TRY 58.000 rents of housing rental income to be obtained in 2026 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 3rd tax bracket (1.500.000 TRY). Otherwise, the total amount of the rental income would be taxable.
Exemption for food allowance
The portion of the allowance provided to employees in cash, ticket, or voucher, which does not exceed TRY 300 is exempted from income tax. Any amount above this threshold will be subject to taxation.
Exemption for transportation allowance
The daily exemption amount for the benefits provided by the employers for the transportation to go to and from the workplace is TRY 158.
Declaration threshold for income from movable assets
The declaration threshold for income from movable assets that are not subject to withholding or exempted is TRY 22.000.
Declaration threshold for employment income subject to withholding
The declaration threshold for employment income subject to withholding is updated to TRY 5.300.000.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Cumhur Dülger
Partner
Ezgi Mugla Ozel
Manager
Erkan Bulut
Senior Consultant
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Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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