Turkey announces 2026 income tax brackets and July tax payment deadline

Turkey’s Ministry of Finance released the 2026 personal income‑tax brackets, introducing five progressive rates ranging from 15% to 40% across six cumulative‑income thresholds: up to 190,000 TL (15%), 190,001‑400,000 TL (20%), 400,001‑1,500,000 TL (27%), 1,500,001‑5,300,000 TL (35%) and above 5,300,000 TL (40%). Tax is calculated on the cumulative taxable amount for the calendar year, and taxpayers can verify their current bracket through the e‑Devlet portal.

Separately, pension‑plan participants were warned that filing retirement applications before 31 December 2026 may yield higher monthly benefits because the 2026 pension coefficient (projected around 1.30) applies a combined 32% increase from early‑year inflation and growth adjustments. Applicants submitting in 2027 would use a lower coefficient unless it exceeds 1.32, potentially making 2027 less advantageous.

The tax authority also announced that the second installment of the motor‑vehicle tax (MTV) for 2026 and the second installment of the 2025 income‑tax are due by 31 July 2026. Payments missed after this date will incur interest and result in a suspension of vehicle inspections until all tax arrears are cleared.