What are the 2025 Freelance Tax Rates in Turkey?

Freelancers in Turkey are subject to progressive income tax rates, with taxes applied based on annual earnings. The 2025 tax brackets for non-salaried individuals, including freelancers, are as follows:

Annual Income (TRY)	Tax Rate
Up to 158,000	15%
158,001 – 330,000	20%
330,001 – 800,000	27%
800,001 – 4,300,000	35%
Over 4,300,000	40%

Example Tax Calculation:

If a freelancer’s annual taxable income is 500,000 TRY, their tax liability is calculated as follows:

First 158,000 TRY at 15%:
158,000 × 0.15 = 23,700 TRY
Next 172,000 TRY (158,001 to 330,000) at 20%:
172,000 × 0.20 = 34,400 TRY
Remaining 170,000 TRY (330,001 to 500,000) at 27%:
170,000 × 0.27 = 45,900 TRY

Total Tax Liability:
23,700 + 34,400 + 45,900 = 104,000 TRY

The 80% Income Exemption for Freelancers

A key tax incentive available to freelancers in Turkey is the 80% income tax exemption, which applies to certain types of services. This exemption was introduced in 2022 and remains valid for 2025. It allows freelancers to exclude up to 80% of their income from taxable earnings, significantly reducing their tax burden.

Eligibility for the 80% Income Exemption:

Freelancers must meet specific criteria to benefit from this exemption:

Service Exportation:
The service must be provided to a client based outside Turkey.
Utilization Abroad:
The service must be used by the foreign client outside Turkey.
Business Scope:
This exemption generally applies to the following sectors:
- Software Development
- Digital Marketing Services
- Design and Creative Services
- Translation Services
- Consulting and Advisory Services
- IT and Technology Services
Tax Registration:
Freelancers must be registered for income tax and maintain accurate financial records.

Example with the 80% Exemption:

If a freelancer earns 500,000 TRY annually and qualifies for the 80% income exemption:

Total Income: 500,000 TRY
Exempt Amount: 500,000 × 0.80 = 400,000 TRY
Taxable Income: 500,000 – 400,000 = 100,000 TRY

New Tax Calculation:

100,000 TRY at 15%:
100,000 × 0.15 = 15,000 TRY

With the exemption, the freelancer's tax liability drops from 104,000 TRY to just 15,000 TRY.

In addition to income tax, freelancers are required to pay Bağ-Kur (self-employed social security) contributions. For 2025, the minimum monthly Bağ-Kur payment is 7,671.38 TRY. However, freelancers under the age of 29 may benefit from a one-year exemption under the young entrepreneur scheme.

Key Tips for Freelancers:

Maintain Accurate Records: Ensure all income and expenses are well-documented.
Utilize Tax Incentives: If you export services, consider taking full advantage of the 80% income exemption.
Consult a Tax Advisor: Professional guidance can help you navigate tax laws and optimize your tax savings.
Leverage Digital Tools: Use e-invoice and e-ledger systems to streamline your tax reporting.

Conclusion

For freelancers in Turkey, understanding the tax landscape is crucial to managing finances effectively. The progressive tax system and incentives like the 80% income exemption can significantly reduce tax liabilities, especially for those in the tech, creative, and export-oriented sectors.

Need assistance with tax compliance or maximizing your benefits? Contact us today to ensure your freelance business thrives in 2025! 🚀

What are the 2025 Freelance Tax Rates in Turkey?