Regarding the Fixed Thresholds and Amounts Applicable in 2026

As of 2025 calendar year, the main changes regarding the lump sum rates and amounts to be applied are as follows

  1. Income Tax Tariff for 2026 Incomes

Income subject to income tax in 2026 will be taxed as follows:

  • Up to 190.000 TL: 15%
  • For the portion exceeding 190.000 TL up to 400.000 TL: 28.500 TL for the first 190.000 TL, and 20% on the excess
  • For the portion exceeding 400.000 TL up to 1.000.000 TL: 70.500 TL for the first 400.000 TL (for wage incomes, 70.500 TL for the first 400.000 TL of incomes up to 1,500,000 TL), and 27% on the excess
  • For the portion exceeding 1.000.000 TL up to 5.300.000 TL: 232.000 TL for the first 1.000.000 TL (367.000 TL for the first 1.500,000 TL of incomes up to 5.300,000 TL), and 35% on the excess
  • Over 5.300.000 TL: 1.737.000 TL for the first 5.300.000 TL (1.697.000 TL for wages), and 40% on the excess
  1. Exemption Amount for Residential Rental Income

The exemption amount for residential properties rented out in 2026 has been set at 58.000 TL.

  1. Exemptions for Meals and Transportation Provided to Employees

Meal Allowance: For meals provided outside the workplace by the employer, the daily exemption amount is 300 TL (excluding VAT).

Transportation Allowance: For daily transportation expenses provided to employees by the employer, the daily exemption amount is 158 TL (excluding VAT).

  1. Limitations on Car Expenses

Rental Expenses: The maximum allowable monthly rental expense for passenger vehicles is 46.000 TL.

Depreciation: In the case of purchased cars:

o Up to 1.200.000 TL of the total SCT (Special Consumption Tax) and VAT

o Up to 1.380.000 TL of the vehicle cost excluding SCT and VAT

o Up to 2.600.000 TL of the total cost (including SCT and VAT) or second-hand purchase cost

can be treated as deductible from the tax base. Amounts exceeding these thresholds will be treated as non-deductible expenses (NDE).

  1. Tax Discount for Tax-Compliant Taxpayers

The maximum discount amount for tax-compliant taxpayers has been updated to 12.000.000 TL for 2026.

  1. Exemptions for Capital Gains and Occasional Income

As of 2026:

Capital gains exemption limit is identified as: 150.000 TL

Occasional income exemption is identified as: 350.000 TL

  1. Declaration Threshold for Capital and Real Estate Income

The declaration threshold for capital income not subject to withholding tax or exemptions has been set at 22.000 TL for 2026.

  1. Minimum Invoice Threshold

The minimum invoice issuance threshold for 2026 has been updated to 12.000 TL. Sales below this amount can be documented with retail sale receipts (cash register slips, retail sale invoices, etc.). However, if the customer’s requests, invoices must be issued for amounts below this threshold.

  1. Direct Expense Recognition Threshold for Tangible Assets

The threshold for direct expense recognition of tools, equipment, and fixtures has been set at 12.000 TL for 2026.

For intangible assets, amortization is required regardless of the amount.

  1. Threshold for Receivables Not Worth Litigation or Enforcement

Receivables not exceeding 26.000 TL can be considered doubtful receivables, and can be written off as a deductible expense without the need for litigation or enforcement as of 2026.

  1. Minimum and Maximum Earnings Subject to Social Security Premiums

Under Article 82 of the Social Insurance and General Health Insurance Law No. 5510, the lower limit for daily earnings is one-thirtieth of the minimum wage, and the upper limit is 9 times this amount. Accordingly, the monthly lower and upper earnings limits for 2025 are:

Period  01.01.2026 – 31.12.2026

Monthly Lower Limit  33.030,00 TL

Monthly Upper Limit  297.270,40 TL

Daily Lower Limit  1.101,00 TL

Daily Upper Limit  9.909,00 TL

  1. Gross Minimum Wage and Employer Costs for 2026

The daily gross minimum wage for the period 01.01.2026 – 31.12.2026 has been set at 1.101 TL. Monthly minimum wage details are as follows:

Minimum Wage Components  Amount (TL/Month)

Gross Minimum Wage                               33.030,00

Social Security Premium (14%)              4.624,20

Unemployment Insurance Premium (1%)  330,30

Monthly Income Tax  –

Stamp Tax  –

Total Deductions                                         4.954,50

Net Minimum Wage  28.075,50

Employer Cost:

Minimum Wage Components  Amount (TL/Month)

Gross Minimum Wage:  33.030,00

Social Security Premium (Employer Share) 15.75% (*)  5.532,53

Social Security Premium (Employer Share) 16.75% (**)  6.523,43

Unemployment Insurance Premium (Employer Share) 2%  660,60

Total Cost (*)  39.223,13

Total Cost ()**  40.214,03

(*) A 5-point discount in the employer’s social security premium rate for manufacturing sector has been considered in the calculation. According to Article 81, paragraph (ı) of Law No. 5510, employers who meet the specified conditions are eligible for a 5-point discount in the employer’s social security premium rate.

(**) A 2-point discount is applied to the employer’s social security premium rate for private sector employers. In the manufacturing sector, the 5-point discount will continue for 2025 and 2026. For employers who do not meet the necessary conditions, the employer’s social security premium rate will be applied as 21.75%.

  1. Stamp Duty Cap

As of 2026, the upper limit of stamp duty for each document has been set at 29.115.961,10 TL

  1. Other Significant Changes
  • Inheritance and gift tax exemption amount applied for spouse and children: 2.907.138 TL
  • Exemption amount applied to gratuitous transfers and lotteries: 66.935 TL
  • Bookkeeping limit in balance sheet basis: 2.500.000 TL (purchase), 3.500.000 TL (sales)
  • Charge amount for cell phones brought by passengers who visit abroad: 54.258 TL