The main objective of this investigation was to evaluate the response of red pepper grown in a subhumid climate to different irrigation and nitrogen levels. Open-field trials were conducted in the Marmara Region, Turkey. Plants were subjected to three water levels [full irrigation (FI)=100% crop evapotranspiration (ETc) and two deficit irrigations (DIs)=66 and 33% ETc restoration] and four levels of N (0, 80, 160, and 240kgNha(-1)) during the 2012, 2013, and 2014 growing seasons. A split-plot experimental design was used. The highest values of biomass and marketable yield (MY) were observed under FI. DI significantly increased the fruit soluble solids content. The biomass yield, MY, and fruit weight significantly improved with increasing nitrogen levels. The 240kgNha(-1) treatment under FI provided the maximum net income. Increasing N supply under DI conditions enhanced the water-use efficiency based on both biomass yield and MY. These results indicate that with respect to the yield, the net income, and the water productivity of red pepper, the FI with a nitrogen supply of 160-240kgha(-1) is recommended for drip irrigated and N-fertigated red pepper under subhumid climate conditions.