The residential rent exemption is TL 47,000 for 2025 and TL 58,000 for 2026. Who must file, the expense methods and the mortgage interest change are covered here.
For those who rent out their holiday home or second home, the most frequently asked question is when and how to declare rental income. This guide is based on the Revenue Administration's (GİB) 2026 information note and Income Tax General Communiqué No. 332, published in the Official Gazette dated 31.12.2025. Because the amounts are updated every year, we have stated separately which year they relate to.
First, the calendar: which year's income is declared, and when?
Rental income is declared in March of the year following the year in which it was earned. According to GİB, the return for 2025 rental income was filed between 1–31 March 2026 through the Ready Declaration (Hazır Beyan) system (intvrg.gib.gov.tr/hazirbeyan); the tax was paid in two instalments, on 31 March and 31 July. Rental income earned in 2026 will be declared in March 2027 under the same arrangement.
Residential rental income exemption
- For 2025 income: TL 47,000 (GİB 2026 information note).
- For 2026 income: TL 58,000 (Communiqué No. 332, Income Tax Law (GVK) Article 21).
The exemption applies only to real estate rented out as a residence; it does not apply to workplace rent. If rent is received from more than one residence, the exemption is applied once to the total of the rental income. If a residence has more than one co-owner, the exemption is applied to each co-owner separately. A person whose residential rental income stays below the exemption does not file a return for this income.
Who cannot benefit from the exemption
According to GİB's information note, the following persons cannot benefit from the exemption:
- Those who, as a result of the administration's determination, did not declare rental income on time or declared it incompletely,
- Those who are required to declare commercial, agricultural or professional income,
- Those whose gross total of wages, income from movable capital, income from real estate capital and other income and receipts exceeds the amount set for the relevant year (TL 1,200,000 for 2025).
Who files a return?
The cases listed by GİB for 2025 are: those who exceed the residential rental income exemption amount; those whose total rental income not subject to withholding and not covered by the exemption exceeds the declaration threshold of TL 18,000; and those whose gross workplace rental income subject to withholding exceeds TL 330,000. For 2026 income, Communiqué No. 332 sets the declaration threshold for income not subject to withholding and not covered by the exemption, under GVK Article 86, at TL 22,000.
Expense methods
Flat-rate expense
15% of the amount remaining after deducting the exemption amount from the rental income is deducted as expense. It is not necessary to collect documents. According to GİB, a taxpayer who chooses the flat-rate expense method cannot switch to the actual expense method until two years have passed.
Actual expense
The expenses listed in Article 74 of the Income Tax Law are deducted with documentation. These include lighting, heating, water and elevator expenses paid by the lessor; insurance expenses; taxes, duties and fees paid for the rented property; depreciation; and repair, maintenance and upkeep expenses. The article also allows, for one real estate rented out as a residence, 5% of the acquisition cost to be deducted from that residence's rental revenue for five years starting from the year of acquisition.
There is an important change in this method: with Law No. 7566, published in the Official Gazette dated 19.12.2025, the wording “Property and rights that are rented out” in the sub-paragraph on interest expense in Article 74 was changed to “Property and rights that are rented out, excluding residences”. As a result, the interest on debts used for a rented residence can no longer be deducted as an actual expense. The change applies to returns for income of periods starting from 1 January 2025.
2026 tax schedule
According to Communiqué No. 332, in the schedule applicable to 2026 income the first bracket is 15% up to TL 190,000; the brackets continue as 20%, 27%, 35% and 40%. For those who also have wage income apart from rent, the brackets are calculated with different amounts; therefore the safest course is to check the total tax against the Ready Declaration system's calculation.
Annual checklist for lessors
- Keep the rental contract and the records showing that the rent was paid through a bank.
- Add up all residential rents you received during the year; compare them with the exemption.
- Check whether the total of your wages and other income exceeds the exemption limit.
- Decide between flat-rate and actual expense; do not forget the two-year binding period.
- If you choose actual expense, accumulate documents throughout the year; take into account that mortgage interest can no longer be deducted.
- In March, log in to the Ready Declaration system and compare the suggested return with your own records.
Conclusion
The most common mistake in rental income declarations is using the amounts of the wrong year: in the March 2026 declaration a TL 47,000 exemption applies, and in the March 2027 declaration a TL 58,000 exemption applies. In complex situations (more than one type of income, co-owned property, workplace rent) we recommend getting support from a certified public accountant. Aktif Emlak can help with steps such as finding tenants and preparing the rental contract in the Edremit Gulf.
