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Indonesia Tax Guide Hub 2026: Income Tax, Rates & Calculator

KEY INSIGHT
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 ~4% employee (JHT 2% + JP 1% + BPJS Kesehatan 1%). Non-residents: 20% flat withholding. The 35% bracket only hits Rp 5 billion+ earners.
At a glance

Key Facts

Tax Rate Range
5-35%
Tax Type
Progressive - rate increases with income
Filing Deadline
March 31 (individuals; October 31 with tax preparer)
Introduction

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 ~4% employee (JHT 2% + JP 1% + BPJS Kesehatan 1%). 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.

This hub links to every Indonesia tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.

Section 01

Indonesia Tax Guides

Detailed Indonesia tax guides on CountryTaxCalc:

Section 02

Indonesia Income Tax Calculator

Indonesia's income tax uses 5 tax brackets from 5% to 35%. Use the calculator to estimate your take-home pay after income tax:

IncomeRate
Rp 0 - Rp 60,000,0005%
Rp 60,000,000 - Rp 250,000,00015%
Rp 250,000,000 - Rp 500,000,00025%
Rp 500,000,000 - Rp 5,000,000,00030%
Over Rp 5,000,000,00035%
Section 03

Related Hubs

Indonesia tax connects with these hubs on CountryTaxCalc:

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FAQ

Frequently Asked Questions

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%).

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.

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.

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%.
Disclaimer:This hub provides general information about Indonesia taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official Indonesia tax authority or a qualified local tax adviser. This is not tax or legal advice.
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