Rental Withholding Tax Calculator
Calculate rental withholding tax from net rent, gross rent or withholding amount. Supports 20% and 10% rates.
Withholding Rate
Current rate (as of 2023): %20
Mode
NOTE: Net rent is what the tenant pays the landlord. Gross rent is the sum of withholding tax paid to the state plus the net rent.
Commercial Rent Withholding: Net or Gross?
The question "net or gross?" in rent payments directly affects both the tenant and the landlord. The tenant deducts 20% withholding from the gross rent and pays it to the government; only the remaining net amount is transferred to the landlord. This calculator supports three different input modes so both parties can clarify their figures.
What Is Rent Withholding Tax and Who Pays It?
Under Article 94 of the Income Tax Law, the tenant is obligated to deduct withholding tax at the time of payment for commercial property rentals. The applicable rate as of 2026 is 20%. The deducted withholding is remitted to the tax office by the tenant via a withholding declaration; the landlord offsets this withholding against income tax.
Residential rental income is outside this scope; withholding applies only to commercial property rentals.
What Is the Difference Between the 3 Modes?
Calculate by Entering Net Rent
Use this mode when you know the amount that will actually be paid to the landlord. Formula: Gross = Net ÷ (1 − Rate). For example, for a 5,000 ₺ net rent: gross = 5,000 ÷ 0.80 = 6,250 ₺, withholding = 1,250 ₺.
Calculate by Entering Gross Rent
Use this mode if the lease agreement states the gross amount. Formula: Withholding = Gross × Rate. From a 6,250 ₺ gross rent, 1,250 ₺ withholding is deducted and 5,000 ₺ net is paid to the landlord.
Calculate by Entering Withholding Amount
Use this mode if you know the withholding amount to be paid to the government and want to calculate the gross/net rents from it. Formula: Gross = Withholding ÷ Rate.
Example Calculations
| Mode | Input Amount | Withholding | Gross Rent | Net Rent |
|---|---|---|---|---|
| Net rent → Withholding | 5,000 ₺ (net) | 1,250 ₺ | 6,250 ₺ | 5,000 ₺ |
| Gross rent → Withholding | 6,250 ₺ (gross) | 1,250 ₺ | 6,250 ₺ | 5,000 ₺ |
| Net rent → Withholding (10%) | 5,000 ₺ (net) | 555.56 ₺ | 5,555.56 ₺ | 5,000 ₺ |
This tool is for informational purposes only. Consult a financial advisor or accountant for your tax obligations.
When Was the 10% Rate in Effect?
By presidential decree, the rent withholding rate was temporarily reduced to 10% for the period 31.07.2020 – 30.09.2021. If you are making retrospective corrections for this period, you can apply the 10% rate by checking the relevant box in the tool.
Tips for Accurate Results
- If your lease says 'net rent', use the 'Calculate by entering net rent' mode; the withholding to be paid to the government is added on top of this amount.
- The withholding amount to be declared on the withholding declaration is the value in the 'Withholding' row, not the gross rent.
- If there is a rent increase or a rate change mid-period, perform a separate calculation for each month.
- If the landlord is a corporate taxpayer, the withholding rate may differ; consult your financial advisor.