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How did the Ottoman tax-farming system work?
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Ottoman Empire
Map showing the expansion of the Ottoman Empire from about 1300 to 1700. The empire reached its greatest extent between 1683 and 1699.
The Ottoman tax-farming system, known as iltizām, was a method of collecting public revenue where the state auctioned taxation rights to the highest bidder, called a mültazim.1
This system functioned through the following mechanisms:
- Revenue Collection: The mültazim was responsible for collecting state taxes from the population. They were required to remit a portion of these collections to the imperial treasury in fixed installments while retaining the remainder as their own profit.12
- Incentive Structure: By allowing the mültazim to keep a share of the collected taxes instead of receiving a fixed salary, the state aimed to incentivize efficiency in revenue collection.2
- Scope: The system was applied broadly, covering land and urban taxes, the production of specific goods (such as salt or wine), and the provision of various services.1
- Administrative Context: Iltizām was a type of mukâṭaʿa (a unit of state revenue). It combined elements of the timar (a fief-like grant) and the emanet (a trusteeship where all proceeds went to the state).2
While the system began under Sultan Mehmed II, it eventually faced challenges, including corruption and the exploitation of holdings for short-term gain during periods of economic decline. The system was officially abolished in 1856, though various forms persisted until the early 20th century.13