Rental Income Tax in Turkey 2026: Guide for Property Owners

Real estate investment is one of the most common ways to generate income in Turkey. However, property owners who earn rental income may be required to pay rental income tax under Turkish tax regulations.

In 2026, many property owners are wondering about tax exemptions, tax brackets, and how rental income tax is calculated.

In this guide, you will learn:

Rental income tax is the tax applied to income earned from renting out real estate.

Under Turkish tax law, this type of income is called:

Real Estate Capital Income (Gayrimenkul Sermaye İradı).

Rental income tax applies to the following types of properties:

Residential rentals
Offices
Commercial properties
Shops and stores
Land or warehouses

However, the government provides a tax exemption for residential rental income to support small property investors.

Table of Contents

Rental Income Tax Exemption for 2026

For 2026, the residential rental income exemption is expected to be approximately 47,000 TL annually.

This means:

If a property owner’s annual rental income is below this amount, they do not need to pay rental income tax.

Example

Annual rental income:

36,000 TL

Since this amount is below the exemption threshold:

No tax is paid
No tax declaration is required

How Is Rental Income Tax Calculated?

Rental income tax is calculated in four steps.

1️⃣ Calculate total annual rental income

2️⃣ Subtract the residential rental exemption

3️⃣ Apply an expense deduction method

4️⃣ Apply the income tax brackets

Example of Rental Income Tax Calculation (2026)

Assume a property owner earns:

Monthly rent: 20,000 TL
Annual rental income: 240,000 TL

Step 1 – Subtract the exemption

Description	Amount
Annual rental income	240,000 TL
Exemption	-47,000 TL
Taxable income	193,000 TL

Step 2 – Apply the Lump-Sum Expense Method

Most property owners prefer the lump-sum expense method, where 15% of income is automatically considered an expense.

Description	Amount
Taxable income	193,000 TL
Lump-sum expense (15%)	-28,950 TL
Net taxable income	164,050 TL

Step 3 – Apply Income Tax Brackets

The 2026 income tax brackets are:

Income Range	Tax Rate
0 – 110,000 TL	15%
110,000 – 230,000 TL	20%
230,000 – 870,000 TL	27%
870,000 -3,000,000 TL	35%
Over 3,000,000 TL	40%

Example tax calculation:

Tax Bracket	Tax Amount
First 110,000 TL	16,500 TL
Remaining 54,050 TL	10,810 TL
Total tax	27,310 TL

Estimated Rental Income Tax Table (2026)

The following table gives property owners a quick idea of possible tax amounts.

Monthly Rent	Annual Income	Estimated Tax
10,000 TL	120,000 TL	9,000 -10,000 TL
15,000 TL	180,000 TL	18,000 -20,000 TL
20,000 TL	240,000 TL	26,000 -28,000 TL
25,000 TL	300,000 TL	35,000 – 40,000 TL
30,000 TL	360,000 TL	50,000 -55,000 TL

Note: These are approximate calculations based on the lump-sum expense method.

Lump-Sum Expense vs Real Expense Method

Property owners can choose between two different deduction methods.

Lump-Sum Expense Method

In this method, 15% of rental income is automatically considered an expense.

Advantages:

No invoices required
Simple calculation
Commonly used by property owners

Real Expense Method

In the real expense method, property owners can deduct actual expenses related to the property.

Eligible expenses include:

Maintenance and repair costs
Building management fees
Insurance expenses
Property tax
Mortgage interest payments
Property management services
Rental service fees

However, all expenses must be documented with invoices.

Rental Income Tax for Commercial Properties

Commercial rentals operate slightly differently.

If the tenant is a company:

20% withholding tax is applied
The tenant pays this tax directly to the government.

Example:

Description	Amount
Monthly rent	30,000 TL
Withholding tax (20%)	6,000 TL
Net payment to landlord	24,000 TL

At the end of the year, the property owner can deduct the withholding tax from their annual tax liability.

When Must Rental Income Be Declared?

Property owners who earn rental income must submit a tax declaration every year in March.

Process	Date
Tax declaration period	March 1 – March 31
First payment installment	March
Second payment installment	July

Declarations can be submitted online via the Revenue Administration’s Ready Declaration System.

Do You Have Rental Property in Istanbul?

How RentRovi Helps Property Owners

Managing rental properties can be time-consuming for many landlords.

Common challenges include:

Finding reliable tenants
Managing rental payments
Handling maintenance requests
Managing property operations

RentRovi provides fully furnished rental and property management services in Istanbul, helping property owners manage their properties more efficiently.

With RentRovi, property owners can: