The calculation process has begun for the revaluation rate that will determine the tax, fee, and fine amounts to be applied in 2027. While the rate is expected to fall between 27 percent and 28.5 percent based on current data, the exact figure will become clear after the Turkish Statistical Institute (TURKSTAT) announces the Domestic Producer Price Index (D-PPI) data for October.
Once the rate is finalized, the Ministry of Treasury and Finance will publish the General Communiqué of the Tax Procedure Law in the Official Gazette. The new amounts will serve as the basis for calculating many taxes, fees, and administrative fines starting from January 1, 2027.
HOW WILL THE RATE BE DETERMINED?
The revaluation rate is calculated by taking into account the average price change in the D-PPI as of October, within the scope of the repeated Article 298 of the Tax Procedure Law No. 213. In this calculation, the average index of the last 12 months is compared with the average of the previous 12-month period.
For the 2026 calculation, the period of November 2024-October 2025 will be compared with the period of November 2025-October 2026. While 10 months of data for the period included in the calculation are known, the figures for September and October have not yet been announced. According to TURKSTAT data, the D-PPI increased by 2.57 percent monthly and 27.95 percent annually in August; the increase based on 12-month averages was 27.76 percent.
According to the current outlook, even if the D-PPI does not increase at all in September and October, the revaluation rate is calculated to be at the 27.16 percent level. The fact that monthly increases in recent months have hovered in the 2 to 2.6 percent range highlights a scenario in the 27.8 to 28.1 percent band.
| September and October monthly D-PPI increase | Revaluation rate |
|---|---|
| 0 percent | 27.16 percent |
| 1 percent | 27.51 percent |
| 2 percent | 27.85 percent |
| 2.5 percent | 28.03 percent |
| 3 percent | 28.20 percent |
The revaluation rate affects fixed fees within the scope of the Law on Fees, passport and international departure fees, motor vehicle tax, fixed amounts in stamp duty, and certain real estate tax values. Irregularity fines within the scope of the Tax Procedure Law are also updated by taking this rate into account.
Administrative fines under the Law on Misdemeanors are also increased every year by the revaluation rate. For this reason, traffic fines will also rise with the new rate. The brackets in the income tax tariff as well as certain exemptions and limits are also affected by the calculation.
The President has the authority to determine different increase rates for certain items such as motor vehicle tax, fees, and stamp duty. However, since there is no such authority for administrative fines, the announced rate is applied directly.
The revaluation rate rose to 122.93 percent in 2022, and was set at 58.46 percent in 2023, 43.93 percent in 2024, and 25.49 percent in 2025 in subsequent years. TURKSTAT is expected to announce the October data in the first days of November, followed by the official announcement of the rate via a communiqué.
News Source: 12punto
