2026 North Cyprus Income Tax Guide
This guide brings together the 2026 income tax brackets, personal allowances, deductible expenses and filing calendar of the Turkish Republic of Northern Cyprus on a single page. All amounts are in Turkish Lira and reflect the officially announced 2026 values compiled from public sources.
Income tax in North Cyprus is progressive: as income rises, each portion falling into a higher bracket is taxed at a higher rate. The taxable base is what remains of gross income after social insurance contributions, the personal allowance and other deductions.
Annual income tax brackets
| Income range (₺) | Rate | Tax in bracket (₺) | Cumulative tax (₺) |
|---|---|---|---|
| 0 to 45,000 | 10% | 4,500 | 4,500 |
| 45,001 to 90,000 | 20% | 9,000 | 13,500 |
| 90,001 to 210,000 | 25% | 30,000 | 43,500 |
| 210,001 to 400,000 | 30% | 57,000 | 100,500 |
| Above 400,000 | 37% |
The annual personal allowance for 2026 is 655,000 ₺.
Monthly scales
For salaried employees the monthly scale is the annual brackets divided by the number of salaries. The monthly personal allowance is 54,583.33 ₺ on a 12 salary basis and 50,384.62 ₺ on a 13 salary basis.
12 salary basis
| Income range (₺) | Rate | Tax in bracket (₺) | Cumulative tax (₺) |
|---|---|---|---|
| 0 to 3,750 | 10% | 375 | 375 |
| 3,751 to 7,500 | 20% | 750 | 1,125 |
| 7,501 to 17,500 | 25% | 2,500 | 3,625 |
| 17,501 to 33,333.33 | 30% | 4,750 | 8,375 |
| Above 33,333.33 | 37% |
13 salary basis
| Income range (₺) | Rate | Tax in bracket (₺) | Cumulative tax (₺) |
|---|---|---|---|
| 0 to 3,461.54 | 10% | 346.15 | 346.15 |
| 3,461.55 to 6,923.08 | 20% | 692.31 | 1,038.46 |
| 6,923.09 to 16,153.85 | 25% | 2,307.69 | 3,346.15 |
| 16,153.86 to 30,769.23 | 30% | 4,384.61 | 7,730.77 |
| Above 30,769.23 | 37% |
Personal and family allowances
The allowances below reduce the taxable base after insurance contributions. Percentages are calculated on the annual personal allowance. Where both spouses earn income, child allowances are shared equally between them.
| Allowance | Rate | Annual amount (₺) | Condition |
|---|---|---|---|
| Personal allowance | Fixed | 655,000 | Applied automatically to every taxpayer |
| Special deduction | 10% | For salaried employees and flat rate taxpayers, on the taxable base | |
| Spouse allowance | 8% | 52,400 | For a spouse living in the same household |
| Spouse allowance (alimony) | 4% | 26,200 | For a former spouse receiving alimony |
| Child allowance | 6% | 39,300 | Child under 16, unmarried and without income |
| Child allowance (secondary education) | 8% | 52,400 | Child under 20 in secondary education, in military service, or under 18 studying abroad |
| Child allowance (higher education) | 11% | 72,050 | Child aged 18 to 27 in higher education |
| Third child | 15% | Additional allowance for the third child | |
| Further children | 5% | Additional allowance for the fourth and each further child | |
| Disability allowance | 15% | 98,250 | Loss of working capacity of 50% or more |
| Disability allowance (full) | 30% | 196,500 | Loss of working capacity of 100% |
| Age allowance | 5% | 32,750 | Taxpayers aged 65 and over |
Insurance and other deductions
| Deduction | Rate | Note |
|---|---|---|
| Social insurance (employee share) | 13% | Withheld from gross salary and deducted from the taxable base |
| Social insurance (employer share) | 19% | An employer cost; does not affect the employee’s taxable base |
| Municipal occupational tax | Amount paid | The amount actually paid during the year is deductible |
Deductible business expenses
The following expenses can be deducted within set limits when determining business profit:
| Expense | Limit | Note |
|---|---|---|
| Donations and aid | 10% of net profit | To state institutions and approved foundations; education, health, culture, sport and science purposes |
| Representation and entertainment | 4% in manufacturing and export, 2% in other sectors | Business related representation costs |
| Depreciation | Tax Procedure Law rates | Machinery, equipment and vehicles; a 1600cc limit applies to passenger cars |
| Operating expenses | Full actual amount | Rent, electricity, water, phone, internet and insurance; business use only |
| Personnel expenses | In full | Salaries, social insurance and provident fund contributions, meal and travel allowances; documentation required |
| Financing expenses | Interest on business loans | Stock purchases, equipment financing and working capital loans |
Personal spending, salaries paid to family members who do not actually work in the business, commuting between home and work, and personal housing rent cannot be deducted.
Types of taxable income
North Cyprus income tax law groups taxable income into eight main categories:
- Wages: salary, bonuses and severance payments
- Business profit: sales of goods and services, including online commerce
- Professional income: independent professionals such as lawyers, doctors and software developers
- Agricultural income: farming and livestock
- Real estate rental income: rent and concession rights
- Gains on real estate sales: subject to special exemptions
- Securities income: interest, dividends and repo income
- Other income: compensation payments and licence fees
Tax calendar
| Item | Deadline |
|---|---|
| Annual return (previous year income) | 30 April |
| Return for a special accounting period | Within 4 months after the period ends |
| Return before leaving the country | 1 month before departure |
| Income tax, 1st instalment | 31 July |
| Income tax, 2nd instalment | 30 November |
| Monthly payment plan deadline | 31 December |
| Balance of a disputed assessment | Within 1 month after it becomes final |
Worked example: single employee
For a single employee with a gross annual income of 1,000,000 ₺ the calculation runs as follows:
| Step | Amount (₺) |
|---|---|
| Gross income | 1,000,000 |
| Social insurance contribution (13%) | 130,000 |
| Income after contributions | 870,000 |
| Personal allowance | 655,000 |
| Special deduction (10%) | 87,000 |
| Taxable base | 128,000 |
The tax works out as 10% on the first 45,000 ₺ (4,500 ₺), 20% on the next 45,000 ₺ (9,000 ₺) and 25% on the remaining 38,000 ₺ (9,500 ₺), giving a total annual income tax of 23,000 ₺.
Worked example: married with two children
A taxpayer with the same 1,000,000 ₺ gross income, a spouse without income and two children reaches total allowances of 918,850 ₺: the personal allowance of 655,000 ₺, the spouse allowance of 52,400 ₺, 52,400 ₺ for the first child, 72,050 ₺ for the second child and the special deduction of 87,000 ₺. Because the allowances exceed the 870,000 ₺ income after contributions, the taxable base is zero and no income tax is due.
The figures in this guide apply to the 2026 tax year and were compiled from publicly available sources. Legislation can change during the year; we recommend confirming the current values with us before acting.