🇮🇩 Indonesia Income Tax Calculator 2026

5 tax brackets from 5% to 35%

Indonesia's hidden benefit: SMEs under Rp 4.8 billion revenue pay just 0.5% final tax on turnover—incredibly low. Regular rates run 5-35%. PTKP gives Rp 54 million tax-free. A Rp 200 million earner pays ~Rp 14 million (~7%). BPJS social security ~5% employee. Non-residents: 20% flat withholding. The 35% bracket only hits Rp 5 billion+ earners.

📊 Indonesia Tax Quick Facts (2026)

Indonesia reformed its tax system in 2022 with 5 brackets from 5% to 35%. The PTKP (Penghasilan Tidak Kena Pajak) provides Rp 54 million/year (~$3,400) tax-free allowance, plus Rp 4.5 million per dependent. But Indonesia's standout feature is the 0.5% final tax for SMEs with revenue under Rp 4.8 billion/year—extremely attractive for small business owners. BPJS social security runs ~5% employee for health and employment. A Rp 200 million earner (~$12,700) pays roughly Rp 14 million income tax (~7%). Indonesia taxes worldwide income for residents (183+ days). Non-residents pay 20% withholding on Indonesian-source income. Tax amnesty programs have been popular. Filing deadline is March 31 for individuals. Use our calculator to estimate your Indonesian tax liability.

2026 Tax Brackets

Taxable Income Tax Rate
Rp 0 - Rp 60,000,000 5%
Rp 60,000,000 - Rp 250,000,000 15%
Rp 250,000,000 - Rp 500,000,000 25%
Rp 500,000,000 - Rp 5,000,000,000 30%
Over Rp 5,000,000,000 35%

Note: These are marginal rates - you only pay the higher rate on income within each bracket.

Source: Directorate General of Taxes

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Frequently Asked Questions

Q: What are Indonesia's income tax brackets for 2026?

Indonesia has 5 brackets (post-2022 reform): 5% on Rp 0-60 million, 15% on Rp 60-250 million, 25% on Rp 250-500 million, 30% on Rp 500 million-5 billion, and 35% above Rp 5 billion. The PTKP (non-taxable income) of Rp 54 million means effective rates are lower. A Rp 100 million earner with no dependents pays ~Rp 2.3 million (~2.3%).

Q: What is PTKP and how does it work?

PTKP (Penghasilan Tidak Kena Pajak) is your tax-free allowance: Rp 54 million/year for individuals, plus Rp 4.5 million for spouse (if not working), and Rp 4.5 million per dependent (up to 3). A married person with 3 children gets Rp 72 million tax-free. PTKP is subtracted from gross income before calculating tax.

Q: What is the 0.5% final tax for SMEs?

Businesses with annual revenue under Rp 4.8 billion can opt for PP 55 final tax at just 0.5% of gross revenue—no expense deductions needed. This applies to sole proprietors and certain entities. Extremely simple and low-cost for small businesses and freelancers. You must elect this regime; default is regular progressive taxation.

Q: How does BPJS social security work?

BPJS Kesehatan (health) requires 5% contribution (4% employer, 1% employee) capped on Rp 12 million monthly salary. BPJS Ketenagakerjaan (employment) includes: JKK (accident) 0.24-1.74%, JKM (death) 0.3%, JHT (old age) 5.7% (3.7% employer, 2% employee), JP (pension) 3% (2% employer, 1% employee). Total employee burden ~4%.

Q: How are foreigners taxed in Indonesia?

Residents (183+ days in Indonesia) pay progressive rates on worldwide income. Non-residents pay 20% flat withholding on Indonesian-source income only—no filing required if only withholding income. Indonesia has tax treaties with 70+ countries allowing reduced rates. KITAS/KITAP holders are typically considered residents from day one.

Last Updated: March 2026