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2025 Income Tax Brackets in Turkey

Introduction

As of 2025, Turkey’s updated income tax brackets bring changes for both salaried and non-salaried individuals. These adjustments reflect the government’s efforts to adapt to inflationary pressures and economic developments while maintaining a progressive taxation system. Understanding these changes is critical for taxpayers to plan effectively and ensure compliance with the Turkish tax system.

This article provides a detailed explanation of the 2025 income tax brackets, their implications, and practical tips for optimizing tax liabilities in Turkey.

Overview of Turkey’s Income Tax System in 2025

Turkey’s personal income tax system remains progressive in 2025, with higher income levels subjected to higher tax rates. The system differentiates between salary income and non-salary income, ensuring tailored treatment for diverse sources of earnings.

Key Highlights for 2025:

  1. Separate income brackets for salaried and non-salaried taxpayers.
  2. Adjusted thresholds to address inflation.
  3. A top marginal tax rate of 40% for incomes exceeding ₺4,300,000.

2025 Income Tax Brackets for Salary Income

Salaried individuals earning income from employment are subject to the following tax brackets:

  • 15%: Income up to ₺158,000.
  • 20%: Income between ₺158,001 and ₺330,000.
  • 27%: Income between ₺330,001 and ₺1,200,000.
  • 35%: Income between ₺1,200,001 and ₺4,300,000.
  • 40%: Income above ₺4,300,000.

Example Calculation:

If an employee earns a total salary of ₺1,500,000 in 2025:

  1. The first ₺158,000 is taxed at 15% = ₺23,700.
  2. The next ₺172,000 is taxed at 20% = ₺34,400.
  3. The following ₺870,000 is taxed at 27% = ₺234,900.
  4. The remaining ₺300,000 is taxed at 35% = ₺105,000.

Total tax liability: ₺398,000.

2025 Income Tax Brackets for Non-Salary Income

Non-salaried individuals earning from sources such as rent, freelance work, or capital gains are subject to the following brackets:

  • 15%: Income up to ₺158,000.
  • 20%: Income between ₺158,001 and ₺330,000.
  • 27%: Income between ₺330,001 and ₺800,000.
  • 35%: Income between ₺800,001 and ₺4,300,000.
  • 40%: Income above ₺4,300,000.

Example Calculation:

If a non-salaried individual earns ₺950,000 from rental income:

  1. The first ₺158,000 is taxed at 15% = ₺23,700.
  2. The next ₺172,000 is taxed at 20% = ₺34,400.
  3. The following ₺470,000 is taxed at 27% = ₺126,900.
  4. The remaining ₺150,000 is taxed at 35% = ₺52,500.

Total tax liability: ₺237,500.

Implications of the 2025 Tax Updates

For Salaried Individuals

  • The first tax bracket’s upper limit increased to ₺158,000, reducing the tax burden for low and middle-income earners.
  • The adjusted thresholds provide a more balanced progression across income levels.

For Non-Salaried Individuals

  • The increased upper limit for the 27% bracket (₺800,000) reflects efforts to align taxation with inflation and rising income levels.
  • Non-salaried individuals with incomes below ₺158,000 benefit from the lowest tax rate of 15%.

For High-Income Earners

  • Income above ₺4,300,000 continues to be taxed at the top rate of 40%, maintaining a progressive taxation approach.

Tax Planning Strategies for 2025

1. Maximize Deductions and Allowances

Taxpayers should take advantage of deductions available for education expenses, medical costs, and charitable contributions. For businesses, professional expenses can also reduce taxable income.

2. Optimize Rental Income Management

Non-salaried individuals earning rental income can benefit from allowable expense deductions, such as property maintenance and management fees.

3. Plan Income Distribution

Taxpayers with multiple income sources (e.g., salary and freelance work) can strategically allocate income streams to minimize their overall tax liability.

4. Utilize Exemptions

Certain incomes, such as rental income up to specific thresholds or capital gains within limits, may qualify for exemptions under Turkish tax law.

5. Seek Professional Assistance

Navigating the complexities of Turkey’s progressive tax system can be challenging. Consulting a tax advisor ensures compliance and helps identify opportunities to optimize tax positions.

How Invest CPA Can Help

Invest CPA provides expert tax advisory services tailored to individuals and businesses operating in Turkey. Our services include:

1. Income Tax Compliance

  • Ensuring accurate tax filings aligned with the 2025 income tax brackets.
  • Managing deadlines and reporting obligations to avoid penalties.

2. Personalized Tax Planning

  • Identifying deductions, exemptions, and allowances to minimize tax liabilities.
  • Structuring multi-source income for optimal tax efficiency.

3. Advisory for High-Income Earners

  • Offering tailored strategies to mitigate the impact of the 40% tax rate.
  • Assisting in structuring investments to reduce taxable income.

4. Compliance for Non-Salaried Individuals

  • Providing guidance on rental income management and allowable expense deductions.
  • Ensuring accurate capital gains reporting and compliance.

With Invest CPA, you can focus on growing your wealth while we handle the complexities of Turkey’s tax system.

Conclusion

The 2025 income tax brackets in Turkey reflect the government’s efforts to adapt to economic realities while maintaining a progressive tax structure. By understanding these brackets and planning effectively, taxpayers can optimize their financial positions while ensuring compliance.

For expert assistance with tax planning and compliance in Turkey, contact Invest CPA today. Our experienced team is here to help you navigate the 2025 income tax landscape with confidence.