Gross to Net Salary Calculation 2026: Income Tax Brackets and Sample Calculations
2026 gross to net and net to gross salary calculation guide. Understand your payslip with income tax brackets, social security deductions, and worked examples.
Gross to Net Salary Calculation 2026: Income Tax Brackets, Social Security Deductions and Practical Guide
The salary you receive each month is determined by various deductions made from your gross salary. Social security premiums, income tax, stamp duty and similar items are deducted from the gross salary to arrive at your net salary. So how are these deductions calculated? What are the 2026 income tax brackets? How do you convert from net to gross?
In this guide, we cover in detail the steps for calculating gross to net and net to gross salary with the current 2026 tax rates and deduction items. You can use our Salary Calculator to make your calculations easier.
What Are Gross and Net Salary?
Gross Salary
Gross salary is the total remuneration that the employer commits to paying the employee. This amount represents the salary before any legal deductions are made. Job listings and contracts typically state the gross salary.
Gross salary includes:
- The net amount the employee will receive
- Employee social security contribution
- Employee unemployment insurance contribution
- Income tax
- Stamp duty
Net Salary
Net salary is the amount deposited into the employee's bank account after all legal deductions have been made. In other words, it is the amount remaining after social security premiums, unemployment insurance, income tax and stamp duty are deducted from the gross salary.
You can quickly find out your net salary by entering your gross salary in the Salary Calculator.
What Is Income Tax?
Income tax is a tax paid to the government on the wage income earned by employees. In Turkey, income tax is applied on a progressive (graduated) basis. This means that as your salary increases, you move into a higher tax bracket.
Income tax is calculated on the amount remaining after social security and unemployment insurance premiums are deducted from the gross salary. As your cumulative tax base increases during the year, your tax rate may also rise.
2026 Income Tax Brackets Table
The income tax brackets effective for 2026 are as follows:
| Income Bracket (Annual Cumulative) | Tax Rate |
|---|---|
| 0 - 190,000 TL | 15% |
| 190,001 - 400,000 TL | 20% |
| 400,001 - 1,500,000 TL | 27% |
| 1,500,001 - 5,300,000 TL | 35% |
| 5,300,001 TL and above | 40% |
This table applies to total wage income earned throughout the 2026 calendar year. Tax starts at 15% at the beginning of the year and moves to higher brackets as the cumulative base increases. You can see your deductions in detail with the SGK Premium Calculator.
Steps for Gross to Net Salary Calculation
Follow these steps to calculate from gross to net salary:
Step 1: Calculate Employee Social Security Contribution
A 14% social security premium is deducted from the gross salary.
- Employee SSI Contribution = Gross Salary x 14%
Step 2: Unemployment Insurance Employee Contribution
A 1% unemployment insurance premium is deducted from the gross salary.
- Unemployment Insurance = Gross Salary x 1%
Step 3: Income Tax Base
The amount remaining after social security and unemployment insurance premiums are deducted is the income tax base.
- Income Tax Base = Gross Salary - SSI Contribution - Unemployment Insurance
Step 4: Income Tax Calculation
The cumulative tax brackets from the table above are applied to the income tax base.
- Income Tax = Income Tax Base x Applicable Tax Rate
Step 5: Stamp Duty
Stamp duty is deducted at a rate of 0.759% of the gross salary.
- Stamp Duty = Gross Salary x 0.759%
Step 6: Net Salary
Net salary is found by deducting all deductions from the gross salary.
- Net Salary = Gross Salary - SSI Contribution - Unemployment Insurance - Income Tax - Stamp Duty
Instead of doing these calculations manually, you can get results in seconds with the Salary Calculator.
Steps for Net to Gross Salary Calculation
When an agreement is made on a net salary basis in job interviews or contracts, a net to gross conversion is needed to calculate the employer's total cost.
Step 1: Determine the Target Net Salary
Determine the net amount you want to receive.
Step 2: Perform Reverse Calculation
The formula for converting from net to gross is:
- Gross Salary = Net Salary / (1 - SSI Rate - Unemployment Rate - Income Tax Rate - Stamp Duty Rate)
Since income tax is progressive, this calculation is done using an iterative method. We recommend using the Salary Calculator for an accurate result.
Step 3: Verification
Verify by calculating from the found gross salary back to net.
Types of Deductions: Social Security, Income Tax, Unemployment Insurance and Stamp Duty
Social Security Premium (SGK)
Social security premium is paid by both the employee and the employer. For detailed information and calculation of SSI premiums, visit our SGK Premium Calculator page.
- Employee contribution: 14% of gross salary
- Employer contribution: 15.5% of gross salary (reduced from 20.5% with the 5-point incentive)
Unemployment Insurance
- Employee contribution: 1% of gross salary
- Employer contribution: 2% of gross salary
Income Tax
Applied progressively between 15% and 40%. The tax rate changes as the cumulative base increases during the year.
Stamp Duty
Deducted at a rate of 0.759% of gross salary. Applies to all wage earners.
Minimum Living Allowance (AGI) - 2026 Update
The AGI application was abolished in 2022. Instead, exemptions were introduced for the minimum wage. In 2026, the exemption of the minimum wage from income tax and stamp duty continues.
Sample Calculations
Example 1: 50,000 TL Gross to Net (First Month of the Year, Single)
| Item | Amount |
|---|---|
| Gross Salary | 50,000.00 TL |
| SSI Employee Contribution (14%) | -7,000.00 TL |
| Unemployment Insurance (1%) | -500.00 TL |
| Income Tax Base | 42,500.00 TL |
| Income Tax (15%) | -6,375.00 TL |
| Stamp Duty (0.759%) | -379.50 TL |
| Net Salary | 35,745.50 TL |
Example 2: 80,000 TL Gross to Net (First Month of the Year, Single)
| Item | Amount |
|---|---|
| Gross Salary | 80,000.00 TL |
| SSI Employee Contribution (14%) | -11,200.00 TL |
| Unemployment Insurance (1%) | -800.00 TL |
| Income Tax Base | 68,000.00 TL |
| Income Tax (15%) | -10,200.00 TL |
| Stamp Duty (0.759%) | -607.20 TL |
| Net Salary | 57,192.80 TL |
Example 3: 35,000 TL Net to Gross (Approximate)
For an employee who wants to receive 35,000 TL net salary, the gross salary would be approximately 49,000-50,000 TL. For an exact calculation, you can use the Salary Calculator.
Employer Cost
The employer's total cost is calculated by adding the employer's SSI contribution and unemployment insurance to the gross salary:
- Employer Cost = Gross Salary + (Gross Salary x 15.5%) + (Gross Salary x 2%)
- For a 50,000 TL gross salary, the employer cost would be approximately 58,750 TL.
In the event of leaving your job, you can calculate your severance rights with the Severance Pay Calculator.
Tips for Understanding Your Payslip
- Know your gross salary: Note down the gross salary stated in your employment contract
- Track the cumulative tax base: As the year progresses, your tax bracket may change, causing your monthly net salary to decrease
- Check the SSI ceiling: In 2026, the earnings ceiling for SSI premiums is limited to a specific amount. If your gross salary exceeds this ceiling, SSI premiums are calculated on the ceiling amount
- Check additional payments: Bonuses and incentive payments are taxed separately
- Review your payslip monthly: Incorrect deductions can occur, so review your payslip regularly
- Verify the minimum wage exemption: The portion up to the minimum wage is exempt from income tax and stamp duty
You can use the SGK Premium Calculator to check SSI premiums on your payslip in detail.
Common Salary Calculation Mistakes
- Assuming income tax is a flat rate: Tax is progressive; the rate changes during the year
- Ignoring the SSI ceiling: For high salaries, SSI premiums are calculated on the ceiling amount
- Thinking the AGI still applies: AGI was abolished in 2022
- Not calculating the cumulative base: Each month's tax is determined based on the total base for the year to date
- Confusing net and gross salary: Always clarify which amount is being discussed in job interviews
Frequently Asked Questions (FAQ)
What is the difference between gross and net salary?
Gross salary is the total remuneration before any deductions are made. Net salary is the amount the employee receives after legal deductions such as social security premiums, income tax and stamp duty.
What are the income tax brackets in 2026?
In 2026, income tax brackets consist of five levels: 15%, 20%, 27%, 35% and 40%. The first bracket is 15% up to 190,000 TL, and the highest bracket is 40% for amounts above 5,300,001 TL.
How is a net to gross calculation done?
A reverse calculation is performed to go from net salary to gross salary. Since income tax is progressive, this calculation can be complex. The most practical way is to use the Salary Calculator.
How much does the social security deduction reduce my salary?
The employee's SSI contribution is 14% of gross salary. The employee unemployment insurance contribution is 1%. In total, 15% of your gross salary is deducted as social security and unemployment insurance. For detailed calculations, use the SGK Premium Calculator.
Is the Minimum Living Allowance (AGI) applied in 2026?
No, the Minimum Living Allowance (AGI) has been abolished since 2022. Instead, an exemption of the minimum wage from income tax and stamp duty has been introduced.
Why does my net salary decrease during the year?
Since income tax is progressive, as your cumulative tax base moves into higher brackets during the year, the income tax rate increases. This can cause the net salary to decrease, especially in the second half of the year.
Is severance pay calculated based on gross salary?
Yes, severance pay is calculated based on gross salary and supplements. One month's gross salary is paid for each full year of service. For detailed calculations, use the Severance Pay Calculator.
What is the employer cost and how is it calculated?
Employer cost is calculated by adding the employer's SSI contribution (15.5% with incentive) and unemployment insurance employer contribution (2%) to the gross salary. For a 50,000 TL gross salary, the employer cost is approximately 58,750 TL.
Conclusion
Gross to net salary calculation is an important topic that requires evaluating many variables together. Knowing the 2026 income tax brackets, social security deductions and stamp duty rates helps you read your payslip correctly and plan your finances.
To make your calculations quickly and accurately:
- Calculate gross to net or net to gross with the Salary Calculator
- View your social security deductions in detail with the SGK Premium Calculator
- Learn about your severance rights with the Severance Pay Calculator
These tools work with the current 2026 tax rates and legal regulations. If you have any doubts about your salary calculation, we recommend consulting your financial advisor.
