Turkey taxes its residents on their worldwide income, whereas non-residents are taxed on Turkish-source earnings only. Income tax is levied on taxable income at progressive rates after certain deductions and allowances.
There is no special tax regime for expatriates.
Personal income tax rates
The following rates apply to employment income from 1 January 2023 (numbers in parentheses represent rates and brackets applicable to non-employment income):
|Taxable income (TRY*)||Tax on column 1 (TRY)||Tax on excess (%)|
|(370,000) 550,000||1,900,000||(85,900) 134,500||35|
* Turkish lira
Taxation of certain income from certain financial instruments (as explained in the Income determination section) are carried out by withholding tax (WHT), and the rates are 0%, 3%, 5%, 7%, 10%, 12%, 13%, 15%, 18%, or 20%, depending on the type of income and instruments.
Local income taxes
There are no local taxes on personal income in Turkey.