Azerbaijan vs Turkey
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฆ๐ฟ Azerbaijan โ Municipal & Local Taxes
Azerbaijan's 67 districts and Baku have limited independent tax powers. The Ministry of Taxes administers all national taxes centrally. Municipalities collect land and property taxes within national frameworks. Oil and gas companies operate under Production Sharing Agreements (PSAs) with the state oil company SOCAR, which have special tax provisions. ASAN (service centres) have modernized tax filing considerably. The Strategic Road Map (2016) targets economic diversification away from oil revenue dependency.
๐น๐ท Turkey โ Municipal & Special Provincial Taxes
Turkey's 81 provinces and 1,389 municipalities levy Real Estate Tax (Emlak Vergisi) at 0.1%โ0.6% of assessed value (doubled in metro areas). Municipalities levy Environmental Cleansing Tax (รงevre temizlik vergisi) and Advertisement Tax. The Communication Tax and BSMV (banking and insurance transactions tax) are national. Municipalities receive shares of central tax revenues. High inflation has significantly eroded real tax burden but required frequent bracket adjustments.
Azerbaijan vs Turkey: Key Tax Differences (2026)
๐ฐ Income Tax: ๐น๐ท Turkey has a higher top income tax rate (14โ25% vs 15โ40%). ๐ฆ๐ฟ Azerbaijan is more favourable for high earners.
๐ VAT/Sales Tax: Turkey has a higher consumption tax (18% vs 1โ20%).
๐ข Corporate Tax: ๐ฆ๐ฟ Azerbaijan offers a lower corporate rate (20% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ฆ๐ฟ Azerbaijan taxes investment gains at a lower rate (20% vs 40%), benefiting investors.