Rental Income Tax in Turkey 2026: Exemption, Rates, Filing
How rental income tax works for foreign owners in Turkey: the 58,000 TL exemption, 2026 brackets, a worked example and the March filing deadline.
Rental income tax in Turkey is not a single flat rate. An owner, Iranian or of any other nationality, first deducts the residential exemption from a year's rent, then a 15% flat expense allowance (götürü gider), and pays tax on the remainder at progressive rates of 15% to 40%. For rental income earned in 2026 the residential exemption is 58,000 TL, and the return is due between 1 and 31 March 2027.
Most Persian-language content on this topic is out of date; one widely found page was last updated in 2020 and lists brackets that no longer exist. This article puts the 2026 figures, a worked example at three rent levels and a step-by-step checklist in one place.
Who has to pay rental income tax in Turkey?
The tax does not depend on the owner's nationality; anyone who rents out property in Turkey is taxed on that income. The difference is the type of taxpayer:
- Resident taxpayer (tam mükellef): someone who stays in Turkey for more than six months in a year. They are taxed on income from Turkey and abroad.
- Non-resident taxpayer (dar mükellef): everyone else. They are taxed only on income earned in Turkey, for example the rent from an apartment in Istanbul.
The residential exemption applies to both groups. If your annual rent does not exceed the exemption, no return is needed. Everything is calculated per owner, so if two people co-own a property each has their own exemption.
You need a tax number to file; the step-by-step guide is in What is a Turkish tax number (vergi numarası) and how do you get one?
Income tax brackets for 2026
Rental income counts as non-wage income and is taxed on a progressive scale. The figures below apply to income earned in 2026 (Income Tax Communiqué No. 332, published in the Official Gazette on 31 December 2025):
| Bracket | Taxable income (TL) | Rate |
|---|---|---|
| 1st | up to 190,000 | 15% |
| 2nd | 190,000 to 400,000 | 20% |
| 3rd | 400,000 to 1,000,000 | 27% |
| 4th | 1,000,000 to 5,300,000 | 35% |
| 5th | above 5,300,000 | 40% |
*Source: KPMG Türkiye and PwC Türkiye, January 2026. Rates are updated every year.*
Important: a higher rate applies only to the part of income above the previous bracket's ceiling, not to the whole amount.
The residential exemption and expenses: what comes off the rent?
Calculating tax on a home (not a shop or office) works like this:
- Add up the gross rent for the year.
- Deduct the 2026 residential exemption: 58,000 TL (it was 47,000 TL in 2025).
- Choose one of two expense methods for the remainder: a 15% flat allowance without receipts, or documented actual expenses (repairs, insurance, property tax, depreciation).
- Tax the remainder using the brackets above.
If you choose actual expenses, you cannot return to the 15% method for two years. The exemption covers residential rent only, not shops or offices. If you fail to file, or file incompletely, when your rent exceeds the exemption, you lose the exemption for that year.
Worked example: monthly rent of 15,000, 25,000 and 40,000 TL
The table below is a simple calculation using the 2026 brackets. It assumes the owner has no other income on the same return and has chosen the 15% method. The figures are illustrations, not the rent of any particular property.
| Line | 15,000 TL a month | 25,000 TL a month | 40,000 TL a month |
|---|---|---|---|
| Annual rent | 180,000 | 300,000 | 480,000 |
| Less exemption of 58,000 | 122,000 | 242,000 | 422,000 |
| Less 15% expenses | 18,300 | 36,300 | 63,300 |
| Tax base | 103,700 | 205,700 | 358,700 |
| Tax | 15,555 | 31,640 | 62,240 |
| Tax as a share of gross rent | about 8.6% | about 10.5% | about 13.0% |
In the middle column, the first 190,000 TL at 15% is 28,500 TL and the remaining 15,700 TL at 20% is 3,140 TL, a total of 31,640 TL. If you have wage or other income as well, it is added to the same base and your tax will be higher.
The rule that rent must be paid through a bank
Since 17 October 2024, home rent must be paid and received through a bank or the post office (PTT), with no minimum amount. Cash payment can lead to separate fines for both tenant and landlord. Ask the tenant to transfer the rent to your account every month and keep the receipts; you need them for the return, and for any later sale of the property.
Short-term tourist rentals (under 100 days) fall under a separate law, No. 7464, and need a permit; see Short-term rentals in Turkey: Law 7464, permit, costs and fines.
Shops and offices: tax withheld at source
When the tenant is a company or someone renting for business, the tenant usually withholds 20% of the rent (tevkifat) and pays it to the tax office. That amount is credited against the tax on your return. For a non-resident owner with only commercial property, this withholding is often the main part of the process, but you should confirm the details with a licensed accountant.
Step-by-step checklist for the rental return
- Through the year, keep the lease and the bank receipt for every month.
- If you have no tax number, get one before March and activate your Interactive Tax Office password.
- Add up the year's gross rent and see whether it exceeds the 58,000 TL exemption.
- Choose the expense method: 15% flat or actual expenses.
- File between 1 and 31 March of the following year, through the Hazır Beyan system or a licensed accountant.
- Pay the tax in two equal instalments: end of March and end of July.
Common mistakes by foreign owners
- Not filing because they live abroad: a non-resident owner also pays tax on rent from Turkish property.
- Taking rent in cash: besides the fine, you have no document to prove income and expenses.
- Claiming the exemption twice: if you own several homes, the exemption applies once to the total residential rent.
- Forgetting other income: other income in Turkey is added to the same base and triggers a higher bracket.
- Ignoring tax in the net yield: work out the yield after tax and costs before buying to let; see How much rent can you earn from a flat in Istanbul? and Annual running costs of an Istanbul apartment.
You can also estimate purchase costs, title-deed tax and fees with the Turkey property buying cost calculator. For lease terms, deposits and rent increase caps, read Renting a home in Turkey 2026, and for tax when you sell, Selling property in Turkey as a foreigner.
Frequently asked questions
What percentage is rental income tax in Turkey for foreigners?
There is no single rate. After the exemption and expenses, income is taxed at 15%, 20%, 27%, 35% and 40% by bracket. In the example above, tax was roughly 8.6% to 13% of gross rent.
Do I need to file if my annual rent is below 58,000 TL?
For residential rent below the exemption, no return is needed. If you go above it, you must file.
Does a non-resident owner get the exemption too?
Yes. The residential exemption applies to residents and non-residents, provided you file on time.
What are the filing and payment deadlines?
The return for 2026 income is due between 1 and 31 March 2027. Tax is paid in two equal instalments, at the end of March and the end of July.
Can I take the rent in cash?
No. Residential rent must be paid through a bank or PTT, and cash payment attracts fines.
Are the figures in this article valid forever?
No. The exemption, brackets and deadlines are updated every year. Check with a licensed accountant or ALO TURKEY's consultants before filing.
Free consultation with ALO TURKEY
Tax rules change and every owner's situation is different. If you are planning to buy a property to let, or want to review the tax position of one you already own, talk to our consultants on WhatsApp or through our contact page.
Sources: Income Tax Communiqué No. 332 (Official Gazette of Türkiye, 31 December 2025), KPMG Türkiye (January 2026), PwC Türkiye (2026), EY Türkiye (rental tax guide), Verginet and TEKCE (updated October 2026). Figures refer to income earned in 2026.