The revaluation rate for 2025 has reached one of the highest levels in recent years at 43.93%. This significant increase brings comprehensive changes to our tax system.
We will see substantial increases in many areas, from income tax brackets to property taxes, traffic fines to meal and transportation allowance exemptions. Additionally, the 3.30% rate to be applied in the first temporary tax period is noteworthy. The submission of the 2025 first quarter (January-March) temporary tax return and tax payment will be made on Tuesday, May 20, 2025.
As Antalya Development, in this article, we will examine in detail how the 2025 revaluation rate is determined, which taxes it affects, and its implications on our daily lives.
What Is The 2025 Revaluation Rate And How Is It Determined?
The revaluation rate, an essential part of our tax system, directly affects our financial obligations in many areas. Understanding how this rate is determined and what it means for 2025 is crucial for our financial planning.
Definition of Revaluation Rate
The revaluation rate is an official measure calculated according to Article 298 of the Tax Procedure Law and used in updating values. This rate reflects inflation between two different periods, ensuring assets and liabilities reflect their current economic values.
Fundamentally, the revaluation rate (RR) serves as a critical reference point for updating various taxes, fees, and penalty amounts. The Ministry of Finance announces it annually in the Official Gazette in October, determining the increase rates for taxes and fees to be implemented at the beginning of the following year.
How Was the 2025 Rate Calculated?
The revaluation rate for 2025 has been announced as 43.93%. This rate is calculated based on the average price increase rate in the Domestic Producer Price Index (D-PPI) announced by the Turkish Statistical Institute compared to the same period of the previous year in October (including October).
The calculation method follows this formula:
[(End Period PPI – Beginning Period PPI) / Beginning Period PPI] x 100 = Revaluation Rate
According to this formula, the producer inflation rate based on twelve-month averages from October to October was determined as 43.93%.
Notably, this rate represents the second-highest figure in the last 25 years, with the third-highest rate recorded in 2024.
Difference Between Temporary Tax Period Rate and Annual Rate
Besides the annual calculation of the revaluation rate, separate rates are determined for temporary tax periods. The revaluation rate to be applied in the first temporary tax period of 2025 has been set at 3.30% (three point thirty percent).
Moreover, a temporary tax period represents a timeframe within a calendar year when tax bases are estimated in advance for provisional tax payments. Investment allowance amounts under the Abolished Additional Articles 1 to 6 of the Income Tax Law can be utilized with a 3.30% increase in the first temporary tax period of 2025.
When examining recent revaluation rates, we observe particularly high rates, with 122.93% in 2022 and 58.46% in 2023. These fluctuations demonstrate how economic indicators directly influence the revaluation rate.
Which Taxes Are Affected by the 2025 Revaluation Rate?
The increase in the revaluation rate will directly impact numerous tax and fee amounts in 2025. Let’s examine in detail how this 43.93% increase will reflect on our tax system.
Income Tax Brackets and Exemptions
Significant changes are evident in income tax brackets. For 2025, the income tax tariff is:
- 15% for up to 158,000 TL
- 20% for amounts up to 330,000 TL
- 22% for amounts up to 800,000 TL (1,200,000 TL for wage income)
- 35% for amounts up to 4,300,000 TL
- 40% for amounts above
The housing rental income exemption amount has been increased from 33,000 lira in 2024 to 47,000 lira in 2025. Additionally, the declaration threshold for movable and immovable capital gains subject to withholding tax has been raised from 230,000 lira to 330,000 lira, while the declaration limit for income not subject to withholding tax or exemptions, such as foreign bank interest income, has increased from 13,000 lira to 18,000 lira.
Property Tax and Valuable Housing Tax
There’s a notable development in property tax; an increase of half the revaluation rate (21.965%) will be applied. Furthermore, the threshold value for valuable housing tax in 2025 has been set at 15,709,000 TL. The tax brackets for properties exceeding this amount are as follows:
- 0.3% for values between 15,709,000 TL and 23,564,000 TL
- 0.6% for values between 23,564,000 TL and 31,421,000 TL
- 1.0% for values above 31,421,000 TL
Motor Vehicle Tax and Traffic Fines
Motor vehicle tax will increase by the revaluation rate (43.93%). Accordingly, the lowest MVT will rise from 347 lira to 499.44 lira, while the highest MVT will increase from 160,285 lira to 230,698.20 lira.
Traffic fines will see the same rate of increase. For instance, running a red light will cost 2,167 TL, driving in the wrong direction 9,267 TL, and emergency lane violations 9,267 TL. For drunk driving, the first offense will incur a 9,267 TL fine, while the second offense will result in an 11,622 TL penalty.
Stamp Duty and Fees
Stamp duty amounts and fees will also increase in line with the revaluation rate. The upper limit for stamp duty to be collected from each document has been set at 24,477,478.90 TL. The fee for mobile phones imported from abroad has increased from 31,692 TL to 45,614 TL.
Revaluation Rate 2025 Calculation Examples
First, examining how the revaluation rate impacts calculations through concrete examples is crucial for taxpayers to understand their fiscal obligations for 2025. Sample calculations demonstrate the increases across various tax items.
Property Tax Calculation Example
Property tax is calculated with an increase of half the revaluation rate (21.965%). For instance, a residential property with a 2024 tax value of 700,000 TL will be calculated for 2025 as follows:
- 2024 property tax value: 700,000 TL
- Increase rate for 2025: 21.965% (half of the revaluation rate)
- 2025 property tax value: 700,000 + (700,000 × 0.21965) = 853,755 TL
However, fractions up to 1,000 TL are not considered, so the property tax value for assessment will be 853,000 TL.
Passenger Vehicle Expense Limit Example
The limits for passenger vehicle expenses have been significantly increased for 2025. These limits directly affect businesses’ tax base calculations.
- Monthly rental expense limit: Increased from 26,000 TL to 37,000 TL
- Total VAT and SCT that can be expensed on initial passenger vehicle purchase: Raised from 690,000 TL to 990,000 TL
- Upper limit for depreciation (excluding VAT and SCT): Increased from 790,000 TL to 1,100,000 TL
- Depreciation limit when VAT and SCT are added to cost: Elevated from 1,500,000 TL to 2,100,000 TL
Additionally, the deductible portion of passenger vehicle expenses (such as fuel, repairs, and maintenance) will continue to be applied at 70%.
Rental Income Exemption Example
The exemption amount for residential rental income has increased from 33,000 TL to 47,000 TL in 2025. For example:
A taxpayer earning monthly rental income of 5,000 TL (annual 60,000 TL) paid tax on 27,000 TL (60,000 – 33,000) in 2024, while in 2025, they will pay tax on 13,000 TL (60,000 – 47,000).
Important note: This exemption applies only to residential rental income. Commercial property rental income is not eligible for this exemption.
2025 Tax Planning: Changing Rates and New Regulations
The 43.93% increase in the revaluation rate for 2025 brings comprehensive changes to our tax system. This increase will significantly impact a wide range of financial obligations, from income tax brackets to property taxes, and from motor vehicle taxes to traffic penalties.
Furthermore, the President’s authority to modify certain tax rates indicates the possibility of adjustments in specific areas throughout the year. Additionally, the 3.30% rate applied during the provisional tax period plays a crucial role in planning annual payments.
It is essential for taxpayers to consider these changes while making their financial plans for 2025 and prepare accordingly in advance.
