Wage taxation in Turkey is regulated under the Income Tax Law No. 193, which outlines how income earned by individuals—including salary, bonuses, and other compensation—is taxed throughout the year.
According to the Income Tax Law No. 193, the income earned by individuals is subject to income tax. The law defines seven types of income: commercial income, agricultural income, wage income, self-employment income, income from immovable property, income from movable property, and other income and earnings.
This guide focuses specifically on the taxation process for individuals earning wage income. It covers the definition and components of wage income, payments considered within the wage scope, deductible items in calculating the tax base, tax-exempt payments, applicable tax brackets, annual tax return requirements, deductible items on the tax return, submission deadlines, and payment dates.
The upcoming sections will include current practices under the Income Tax Law, numerical thresholds for 2024 and 2025, and example calculations.
Definition of Wage Income
Wage is the total of cash and benefits provided by the employer in return for services performed by employees under an employment relationship and a specific workplace. Wage income earned by individuals within a calendar year is subject to income tax.
Wage refers to the gross revenue obtained from the employer in return for physical or intellectual labor. This revenue may consist of cash, goods, or other benefits that can be represented in monetary terms.
The payment of wages under names such as allowances, compensations, fund compensations, allocations, raises, advances, fees, honoraria, bonuses, premiums, or reimbursement of expenses, or the determination of earnings as a percentage of profit (provided there is no partnership relationship), does not change its nature as wage.
How Wage Taxation Works in Turkey
Wage income is generally subject to withholding tax, and the tax is calculated on the net amount of the income. The withholding taxes on wage income are declared and paid by employers through the withholding and premium service return (Muhtasar ve Prim Hizmet Beyannamesi).
If the wage income is not subject to withholding or is only partially withheld, and exceeds the exempt minimum wage threshold, it must be declared by annual tax return.
Also, as of January 1, 2022, the portion of the wage income corresponding to the minimum wage (after deducting employee social security and unemployment insurance contributions) is exempt from income tax.
Net Wage Calculation under Wage Taxation in Turkey
Net wage is calculated by deducting specific items from the total of cash and benefits provided by the employer (gross wage).
Deductible Items
- Pension contributions and social security premiums
- Social security support premiums
- Unemployment insurance premiums
- Life/personal insurance premiums
- Legal deductions made by OYAK and similar public institutions
- Union dues (for labor and civil servant unions)
- Disability allowance
When to File a Tax Return for Wage Taxation in Turkey
Wages from a Single Employer
Wages earned from a single employer that have been subject to withholding tax must be declared if they exceed:
- 3,000,000 TL for the year 2024
- 4,300,000 TL for the year 2025
If the income is below these thresholds, there is no requirement to file an annual return.
Wages from Multiple Employers
If income is earned from more than one employer:
- The total income from second and subsequent employers exceeds:
- 230,000 TL in 2024
- 330,000 TL in 2025
or
- The total wage income exceeds:
- 3,000,000 TL in 2024
- 4,300,000 TL in 2025
then the entire wage income must be declared.
Deductions from Income Declared on Annual Tax Return
Deductions related to the income declared in the annual tax return are regulated under Article 89 of the Income Tax Law and other relevant legislation.
Deductible Items
- Life/personal insurance premiums
- Education and health expenses
- Disability allowance (also applicable for dependents)
- Donations and aid, partially or fully deductible
- Sponsorship expenses
- Donations made to campaigns initiated by the President
- Donations to Turkish Red Crescent and Turkish Green Crescent
- Angel investor deductions
- Donations and aid deductible under other laws
Foreign Wage Income and Taxation in Turkey
Wages received directly from foreign employers and not subject to withholding tax in Turkey must be declared through an annual income tax return.
Tax Exemption Conditions
Such wage income is exempt from income tax if all the following conditions are met:
- The employer has no legal or business center in Turkey
- The employer does not engage in any activity in Turkey that generates commercial income
- The wage is paid in foreign currency
- The wage is paid out of the employer’s foreign-sourced income
- The wage is not recorded as an expense in the employer’s accounts in Turkey
- (If applicable) The employee works within a regional management center authorized by the Ministry of Trade
Income Tax Brackets
2024 Income Tax Brackets
| Income Range (TRY) | Tax Rate / Calculation Description |
|---|---|
| Up to 110,000 | 15% |
| Up to 230,000 | 16,500 TRY for the first 110,000, 20% on the excess |
| Up to 580,000 | 40,500 TRY for the first 230,000, 27% on the excess (For wages: up to 870,000) |
| Up to 3,000,000 | 135,000 TRY for the first 580,000, 35% on the excess (For wages: 213,300 TRY for first 870,000) |
| Over 3,000,000 | 982,000 TRY for the first 3,000,000, 40% on the excess (For wages: 958,800 TRY for first 3,000,000) |
2025 Income Tax Brackets
| Income Range (TRY) | Tax Rate / Calculation Description |
|---|---|
| Up to 158,000 | 15% |
| Up to 330,000 | 23,700 TRY for the first 158,000, 20% on the excess |
| Up to 800,000 | 58,100 TRY for the first 330,000, 27% on the excess (For wages: up to 1,200,000) |
| Up to 4,300,000 | 185,000 TRY for the first 800,000, 35% on the excess (For wages: 293,000 TRY for first 1,200,000) |
| Over 4,300,000 | 1,410,000 TRY for the first 4,300,000, 40% on the excess (For wages: 1,378,000 TRY for first 4,300,000) |
Need Help with Wage Taxation in Turkey?
The taxation of wage income in Turkey is not limited to applying standard tax brackets. The Income Tax Law provides numerous exemptions, deductions, and special provisions. However, to fully benefit from these advantages, a correct interpretation of the legislation and personalized assessment based on individual circumstances is essential.
Your tax liability may change significantly under the following circumstances:
- Wages received in foreign currency from overseas employers may be entirely exempt from income tax if certain conditions are met.
- If you have earned income from multiple employers within the same year or your wage income falls into a higher tax bracket, you may be required to file an annual tax return.
- Expenses related to education, health, life insurance, disability status, or charitable donations may provide substantial deductions from your taxable base.
- If you are eligible for a tax refund, there’s no need to worry about navigating the tax office—we will handle the entire process on your behalf, ensuring that your legal rights are fully exercised with confidence.
Such complex and technical issues can significantly reduce your tax burden when handled professionally—and in some cases, you may even pay no tax at all. Working with an expert advisor is the most effective way to determine the most advantageous and lawful strategy tailored to your situation.
💼 Need support with your income tax filing, special case evaluation, or refund eligibility?
👉 Contact us now for a personalized consultation.
At Metropol Partners, our team of former tax inspectors carefully analyzes each taxpayer’s unique situation and identifies all legal opportunities available. With customized solutions, we help you calculate your tax accurately, fairly, and advantageously.
Additional Information
Since tax regulations are subject to change, you may refer to the official website of the Turkish Revenue Administration (GİB) for the most up-to-date information:
👉 https://www.gib.gov.tr