Turkey Rental Income Tax Guide 2026
Rental income from property in Turkey is taxed at the progressive income tax rates of 15% to 40%. For homes, the first 58,000 TL of rent earned in 2026 is exempt (47,000 TL for 2025). Most landlords can deduct a flat 15% of the rest instead of listing their expenses. Rent is declared once a year, in March of the following year. The same rules apply to foreign owners, including non-residents.
The return for 2025 rent was due by 31 March 2026. Rent earned in 2026 is declared between 1 and 31 March 2027.
Key figures at a glance
| 2025 income (filed March 2026) | 2026 income (filed March 2027) | |
|---|---|---|
| Residential rent exemption | 47,000 TL | 58,000 TL |
| No exemption if your total income exceeds | 1,200,000 TL | 1,500,000 TL |
| Commercial rent already taxed by withholding: declare if above | 330,000 TL | 400,000 TL |
| Rent not subject to withholding: declare if above | 18,000 TL | 22,000 TL |
| Lump-sum expense deduction | 15% | 15% |
The 2026 amounts were published in Income Tax General Communiqué No. 332, in the Official Gazette of 31 December 2025.
Income tax rates for 2026
Rental income is added to your other declared income and taxed at these rates (2026 tariff for income other than wages):
| Taxable income | Rate |
|---|---|
| Up to 190,000 TL | 15% |
| 190,000 – 400,000 TL | 20% |
| 400,000 – 1,000,000 TL | 27% |
| 1,000,000 – 5,300,000 TL | 35% |
| Above 5,300,000 TL | 40% |
The residential rent exemption
If the rent you earn from homes during the year stays below the exemption amount, you do not need to file a return for it. If it is higher, only the part above the exemption is taxed.
The exemption has conditions:
- It applies once per person, to the total rent from all your homes, not once per property.
- Co-owners (for example, a married couple on the title deed) each use their own exemption on their own share of the rent.
- It does not apply if you must declare business, agricultural or professional income, or if your total income for the year (wages, investment income, rent and so on) is above the limit in the table (1,500,000 TL for 2026).
- If you do not declare rent on time, or declare less than you received, you lose the exemption for that year. The exception is a late return filed before the tax office has started an assessment.
- It covers residential rent only. Commercial rent never benefits from it.
Two ways to deduct expenses
You can reduce taxable rent in one of two ways. The choice applies to all your properties together.
1. The lump-sum method (15%). You deduct 15% of your rent, after the exemption, without any receipts. This is the simplest option and suits most owners of one or two apartments. If you choose it, you cannot switch to actual expenses for two years.
2. The actual-expense method. You deduct documented costs such as repairs and maintenance, insurance premiums, property tax, management fees and depreciation. You must keep the documents for five years. If you also use the residential exemption, you can deduct only the share of expenses that relates to the taxable part of the rent.
New from 2025: interest on a home loan is no longer deductible. Law No. 7566 (Official Gazette of 19 December 2025) removed the deduction of interest on loans used to buy residential property that is rented out. The change applies from 2025 income, so it already affected the returns filed in March 2026. Interest on loans for commercial property can still be deducted.
The flat rate was higher in the past: it was 25% until 2018, when it was cut to 15%. After that change, owners with significant documented costs often pay less tax under the actual-expense method. It is worth comparing both methods each year you are free to choose.
A worked example (2026)
A landlord with no other income rents out an apartment for 30,000 TL a month in 2026 and uses the lump-sum method:
| Step | Amount |
|---|---|
| Rent received (12 × 30,000 TL) | 360,000 TL |
| Less the residential exemption | −58,000 TL |
| Less 15% lump-sum expenses (15% of 302,000 TL) | −45,300 TL |
| Taxable income | 256,700 TL |
| Tax: 15% of 190,000 TL + 20% of 66,700 TL | 41,840 TL |
This is a simplified example. Your own tax depends on your other income, the method you choose and any other deductions.
Commercial property
If you rent a shop or office to a company or another business taxpayer, the tenant withholds 20% of the gross rent and pays it to the tax office for you. For residents, commercial rent that has been fully taxed this way needs a return only above the limit in the table (400,000 TL for 2026). Commercial rent that has not been taxed by withholding must be declared above 22,000 TL for 2026. The residential exemption never applies to commercial rent.
Rent must be paid through a bank
Landlords and tenants must document all rent payments through a bank or PTT (the Turkish post office). This includes short-term lets. Transfers, EFT, cheques and card payments all count, and cash does not. The penalty is 10% of each non-compliant payment, with a minimum amount. Landlords and tenants can both be fined.
How to file and pay
- Where: online through the Revenue Administration's Hazır Beyan (ready-made return) system in the Digital Tax Office, or through its mobile app. The system pre-fills rent data from official records, and you review and approve the return.
- When: 1–31 March of the year after you earned the rent.
- Payment: in two equal instalments, by the end of March and the end of July. For 2025 income these were 31 March and 31 July 2026.
Rules for foreign and non-resident owners
- A non-resident (someone without a home in Turkey who stays in Turkey for six months or less in a calendar year) pays Turkish tax only on income earned in Turkey, including rent.
- Non-residents can use the residential exemption under the same conditions as residents, according to the Revenue Administration's 2026 guide for non-residents.
- Commercial rent that has been fully taxed by withholding does not need a return for a non-resident. Rent that has not been withheld must be declared, however small the amount.
- To register, a non-resident owner opens a tax record at the tax office where their representative in Turkey lives or, if they have none, where the property is. After that, they can use the Hazır Beyan system like any other taxpayer.
- Your home country may also tax rent from Turkey. Check whether a double tax treaty applies and ask a tax adviser in both countries.
What this means for property owners
- Small residential rents may be tax-free. If your yearly rent from homes stays below the exemption (58,000 TL for 2026) and you meet the conditions, you do not need to file a return.
- File on time. A late or incomplete return costs you the exemption and adds penalties and interest.
- Plan your deduction method. The flat 15% is simple. The actual-expense method can lower the tax when you have significant documented costs, but home-loan interest no longer counts.
- Keep everything in the bank. Bank-transferred rent, a written contract (see the e-Devlet rental agreement) and kept receipts make filing easy.
For the wider picture, including rent trends, increase caps and deposits, read our guide to real estate rentals in Turkey. If you live abroad, our property management service can handle tenants, rent collection and coordination with your accountant. Rental management is quoted separately. Questions? Contact us.
This guide gives general information and is not tax advice. The figures change every year, so check with a Turkish tax adviser before you file.
Sources
- Gelir İdaresi Başkanlığı: Rental income guide for non-residents, 2026
- Gelir İdaresi Başkanlığı: Hazır Beyan quick guide to rental income
- Gelir İdaresi Başkanlığı: last day for 2025 income tax returns, 31 March 2026
- KPMG Turkey: 2026 income tax brackets and amounts (General Communiqué No. 332)
- Nazali: Law No. 7566 and rental income
