How is Rental Income Tax Calculated?

What is Rental Income Tax?

Rental income tax, which is evaluated within the scope of Article 70 of the Income Tax Law, is a type of subject tax. This article, which states that the income obtained in the case of renting out real estate is subject to income tax under certain conditions, is of great interest to property owners.

To put it clearly, this tax is the tax that the property owner is obliged to pay on the income obtained from the rental. The amount paid by the tenant is subject to tax and this amount is declared to the tax office without interruption. This type of tax, which is valid in many countries, is regulated within the scope of the laws determined in our country and penal sanctions are applied in case of non-payment. Although the rate varies within the scope of income and tax brackets, there is a directly proportional application. In other words, high rental incomes are taxed at high rates. Therefore, whether in Ankara orIstanbul rental apartments , the amount of rental income determines the tax amount. In this process, Endeksa supports you with effective regional analyses for your home search regarding homes for sale and rental in Turkey. You can also learn the annual income of the home you are considering buying through Endeksa. You can also contact us to get information about the process.

Who Must Declare Rental Income?

The most important issue that homeowners wonder about when paying rental income tax is who must declare their rental income. According to the 2024 regulation, those who must declare rental income within a calendar year can be explained as follows:

Property owners whose residential rental income exceeds 21,000 TL,
Those whose workplace rental income gross amount, completely withheld, has exceeded the declaration limit of 150,000 TL,
Those whose total real estate capital income, excluding withholding and exemption application, exceeds the limit of 8,400 TL,

All property owners who comply with these listed items should carefully follow the payment dates and conditions.

Who Does Not Pay Rental Income Tax?

Another issue of curiosity is who is exempt from paying income tax for rent. There is an exception valid under this type of tax and only covers residential rents. However, this exception is revised and its scope is determined every year. As a result of the regulation made for 2024, if the rental income from a residence is less than 21,000 TL, the homeowner is not required to pay rental income tax. On the other hand, if the annual rental income exceeds this amount, a tax return must be filed. In cases where a person or institution earns income from two or more residences, the exemption cannot be used separately for each residence.

How to Fill Out Rental Income Tax Return?

Homeowners can perform transactions such as filling out rental income tax returns very quickly and easily over the internet. The e-government platform or the Revenue Administration website can be preferred for transactions. When you want to make a transaction via e-Government, you can follow these steps:

Log in to the e-Government system and type the word GIB into the search bar.
Click on the “Prepared Declaration System Editing” tab among the options in the search results. This tab will direct you to the relevant web page of the Revenue Administration.
On the newly opened page, select the year you want to file a declaration for and click on the “Fill Declaration” option.
Fill in the information requested from you completely and correctly.
Finally, you can complete the transaction by writing the amount obtained from capital and rental income for the real estate to be declared into the declaration.

If you complete all these steps carefully, you can create your tax return without any problems.

How Much is the Rental Income Tax for 2024?

Rental income tax for those who rent their homes has been regulated at certain rates within the scope of 2024. Therefore, in order to make the correct calculation, it is necessary to examine the 2024 data and to process them. On the other hand, this tax return is given annually and the stamp duty payment should also be taken into account. When all these issues are taken into consideration, "2024 How much is the tax payment for the year? The answer to the question is as follows:

15% for properties up to 70,000 TL,
10,500 TL for 70,000 TL of 150,000 TL, 20% for more,
26,500 TL for 150,000 TL of 370,000 TL, 27% for more,
85,900 TL for 370,000 TL of 1,900,000 TL, 35% for more,
For up to 1,900,000 TL 621,400 TL, 40% payment must be made for more.

Every property owner whose annual rental income is above the determined amount must make calculations according to tax rates and make payments regularly without missing payment dates. On the other hand, these regulations cover all cities, whether it is Houses for rent in Ankara or houses for rent in Istanbul.

Calculation of Rental Income Tax

Another important issue that concerns property owners will be the calculation of rental income tax. Before making the calculation, you need to know the initial rental amount. Afterwards, you can calculate by following these steps:

Determine the annual rental income. This income is the total of the rental fees you receive from your tenant or tenants and is calculated annually.
Then, you can deduct expenses such as insurance premiums or maintenance costs from your annual rental income. However, do not forget that these expenses must be documented. When you deduct the expenses, you will also calculate the tax base. In other words:

Let's say your rental income is 50,000 TL per year.
Let's say your expenses are 10,000 TL.
The tax base is the result you reach when you subtract your expenses from your income. 50,000 – 10,000 = 40,000 TL

Determine the tax rate. For this, you should review the rates regulated within the scope of 2024.
Then, you can calculate the tax amount you need to pay by multiplying the tax base and tax rate.

We calculated the tax base as 40,000 TL.
Let's say 10% for the tax rate.
In this case, the tax amount to be paid will be 40,000 x 10% = 4,000 TL.

The rental income tax calculation steps may seem complicated to many people who are not familiar with the subject. For this reason, it would be beneficial to get help from a real estate appraiser or consultant. Moreover, you can make payments in accordance with tax laws and correctly by getting professional help.

When is Housing Rental Income Tax Paid?

Knowing when income tax will be paid for rent is at least as important as making the correct calculation. The time when the rental income declaration must be filed has been determined as March 1 - April 1, 2024. In addition, the months in which the rental tax will be paid have been selected as March and July, and property owners have been provided with the convenience of paying in two equal installments.

How to Pay Rental Income Tax?

In order to pay rental income tax, property owners must apply to the tax office affiliated to their address of residence, an authorized bank branch or the institution's mobile application. You can also use the Revenue Administration Presidency's Interactive Tax Office platform. You can get faster results in payments made over the internet and complete your transactions in a practical way.