In Turkey, income tax rates are applied progressively by taking into consideration the yearly cumulative income tax base. As a result, income tax rate may vary from month to month during the year.
There are 4 different income sections (tax brackets) to which different tax rates are applied. Also, these sections may be different for the wages (salaries) and other types of income.
As per Income Tax General Communique Serial No. 35 issued in Official Gazette on 31 January 2018 taxable income brackets and the rates are as below:
TAXABLE INCOME TAX RATE
Up to ₺18,000 15%
For the ₺18,000 of ₺40,000, the tax is 2,700 TRY in excess 20%
For the ₺40,000 of ₺148,000, the tax is ₺7,100,
(For the ₺40,000 of ₺98,000 in other incomes ₺7,100 in excess 27%
For the ₺148,000 of income over ₺148,000, the tax is ₺36,260,
(For the ₺98,000 TRY of income over ₺98,000, the tax is 22,760 in excess 35%
We can simply show the tax rates applied to employee’s income (salary) in the table below:
1st Income Bracket 15% |
0 – ₺18,000 |
2nd Income Bracket 20% |
₺18,000 – ₺40,000 |
3rd Income Bracket 27% |
₺40,000 – ₺148,000 |
4th Income Bracket 35% |
₺148,000+ |
INCOME TAX OF MINIMUM WAGE
As the income tax rates are progressive and yearly cumulative income is taken as a base, after September, minimum wage earner’s net base monthly salary may get lower than the one announced as ₺2020,91, due to the shift into the upper section (%20). In order to prevent this decrease, minimum wage earners will get ML (Minimum Living Allowance) support to maintain the net amount they are receiving.
An employee may have additional payments such as meal allowance, transportation pay, bonus etc. and their payments can be over ₺2020,91 (Base salary + Additional payments). In the application of MLA support additional payments are not taken into consideration and only the employees’ base salary (₺2020,91) is protected.