Income tax brackets for the new year have been announced: Has the disability tax deduction increased?

With the communiqué published by the Ministry of Treasury and Finance, the income tax tariff and exemption amounts for 2025 have been determined. Accordingly, the first income bracket has been increased from 110 thousand liras to 158 thousand liras, the second bracket from 230 thousand liras to 330 thousand liras, and the third bracket from 580 thousand liras to 800 thousand liras. The top bracket has been raised from 3 million liras to 4 million 300 thousand liras.

While the third bracket for those earning wage income has been raised from 870 thousand liras to 1 million 200 thousand liras, the new rates allow taxpayers to pay tax at higher brackets at a later stage.

ATTENTION THOSE RECEIVING GROSS SALARY: HOW MUCH WILL BE DEDUCTED FROM YOUR SALARY?

Accordingly, those with an income of up to 158 thousand liras will pay 15 percent income tax, those between 158 thousand and 330 thousand liras will pay 20 percent income tax, those between 330 thousand and 1 million 200 thousand liras will pay 27 percent income tax, those between 1 million 200 thousand and 4 million 300 thousand will pay 35 percent income tax, and those with an income of 4 million 300 thousand and above will pay 40 percent income tax.

TAX ADVANTAGE FOR MINIMUM WAGE EARNERS

The 30 percent increase in the minimum wage has also increased the income and stamp tax exemption. Throughout 2025, all wage earners will not pay a total of 47 thousand 519.79 TL in income and stamp tax.

In addition, the daily meal allowance exemption amount has been raised from 170 TL to 240 TL, and the travel allowance exemption amount has been raised from 88 TL to 126 TL. Thus, the total monthly meal and travel allowance that can be paid to employees will be exempt from tax.

TAX DEDUCTION FOR DISABLED CITIZENS

The income tax deduction amounts benefited from by disabled citizens have been increased at the revaluation rate. Monthly deduction amounts according to the degree of disability have been updated as follows:

1st Degree: 2 thousand 400 TL (previously 1700 TL)

2nd Degree: 5 thousand 700 TL (previously 4 thousand TL)

3rd Degree: 9 thousand 900 TL (previously 6 thousand 900 TL)

The SCT (Special Consumption Tax) exemption amount applied to vehicles used by disabled individuals has been increased to 2 million 290 thousand 200 TL as of January 1, 2025.

Exemptions for rental, incidental, and capital gains

The exemption amount for rental income, which was 33 thousand TL, has been raised to 47 thousand TL.

Exemption amount for capital gains: 120 thousand TL (previously 87 thousand TL)

Exemption amount for incidental gains: 280 thousand TL (previously 200 thousand TL)

Declaration filing limit: 18 thousand TL

CHANGES IN PASSENGER VEHICLE EXPENSES

Expense and depreciation amounts related to passenger cars have also been updated according to the revaluation rate.

Monthly rental fee: 37 thousand TL (previously 26 thousand TL)

Limit that can be expensed through depreciation: 2 million 100 thousand TL (previously 1 million 500 thousand TL)

INHERITANCE, TRANSFER, AND TRADESMAN TAX EXEMPTION AMOUNTS

With the regulations made, the scope of tax-exempt tradesmanship was expanded, and those who sell products they manufacture at home on the internet and similar platforms were also included in the scope of the exemption.

The exemption limit of 1 million 100 thousand liras was increased at the revaluation rate to 1 million 580 thousand liras. In this context, income earned up to 1 million 580 thousand liras will be within the scope of the exemption. The earnings of taxpayers subject to the simple method had been exempt from income tax since 2021.

Some limits and amounts, such as annual rental amounts and annual purchase, sale, and business revenue, which are among the conditions for being subject to the simple method, have also been updated.

While compliant taxpayers among income and corporate tax payers who file their declarations on time and pay their taxes benefit from a 5-point tax deduction, the upper limit of the amount for which the tax deduction can be applied was also increased at the revaluation rate from 6.9 million liras to 9.9 million liras.

Exemption amounts in Inheritance and Transfer Tax have increased and the tax tariff has been updated.

The exemption amount applied for spouses and children in transfers through inheritance has increased from 1 million 609 thousand liras to 2 million 316 thousand liras, and the exemption amount applied to gratuitous transfers and bonuses has increased from 37 thousand 59 liras to 53 thousand 339 liras.