Pasal 17 rates for resident individuals
Indonesia taxes resident individuals on worldwide income at progressive rates set by Article 17 of the Income Tax Law, as amended by the Tax Harmonisation Law (UU HPP) in 2021. The 5% band was widened from Rp50 million to Rp60 million and a new 35% top band added from tax year 2022. The rates are unchanged for 2026.
| Annual taxable income (PKP) | Rate | Tax on the full band | Cumulative tax at top of band |
|---|---|---|---|
| Rp0 – Rp60,000,000 | 5% | Rp3,000,000 | Rp3,000,000 |
| Rp60,000,001 – Rp250,000,000 | 15% | Rp28,500,000 | Rp31,500,000 |
| Rp250,000,001 – Rp500,000,000 | 25% | Rp62,500,000 | Rp94,000,000 |
| Rp500,000,001 – Rp5,000,000,000 | 30% | Rp1,350,000,000 | Rp1,444,000,000 |
| Above Rp5,000,000,000 | 35% | — | — |
Taxable income (Penghasilan Kena Pajak, PKP) is net income minus PTKP, rounded down to the nearest thousand rupiah. For employees, net income is gross pay minus biaya jabatan (5%, up to Rp6 million a year) and their own pension contributions.
Run your own numbers with these brackets.
Income Tax Calculator →PTKP — non-taxable income
PTKP is set by PMK 101/2016 and has not changed since. It is determined by your situation on 1 January of the tax year, so a marriage or child later in the year counts from the next year.
| Status | Situation | PTKP | TER category |
|---|---|---|---|
| TK/0 | Single, no dependants | Rp54,000,000 | A |
| TK/1 | Single, 1 dependant | Rp58,500,000 | A |
| TK/2 | Single, 2 dependants | Rp63,000,000 | B |
| TK/3 | Single, 3 dependants | Rp67,500,000 | B |
| K/0 | Married, no dependants | Rp58,500,000 | A |
| K/1 | Married, 1 dependant | Rp63,000,000 | B |
| K/2 | Married, 2 dependants | Rp67,500,000 | B |
| K/3 | Married, 3 dependants | Rp72,000,000 | C |
Each addition is Rp4,500,000: one for being married and one for each dependant — a blood relative or relative by marriage in a direct line (children, parents, in-laws) or an adopted child who is fully supported — up to three. In 2025 the government said it was studying an increase in PTKP, but no change has been made for 2026.
Married couples. Indonesia treats a family as one tax unit by default. The husband claims the K status; a working wife's employer withholds as if she were TK/0, and her salary is reported as final-taxed in the husband's return. Couples who agree to file separately (PH) or who are legally separated (HB) are taxed on combined income split proportionally.
Final taxes on specific income
Some income is taxed at a flat final rate when paid and is not added to your progressive income. Common examples:
| Income | Rate |
|---|---|
| Bank deposit and savings interest | 20% |
| Government and corporate bond interest (residents) | 10% |
| Dividends from Indonesian companies (not reinvested) | 10% |
| Rent of land and buildings | 10% of gross rent |
| Sale of land and buildings | 2.5% of gross price |
| Sale of shares on the Indonesia Stock Exchange | 0.1% of sale value (plus 0.5% for founder shares) |
| Lottery and gambling prizes | 25% |
| Severance pay | 0% – 25% layered |
| UMKM business turnover | 0.5% of gross |
| Honoraria for civil servants paid from state budget | 0% – 15% by rank |
Residents, non-residents and expatriates
You are a tax resident if you are in Indonesia for more than 183 days in any 12-month period, or are in Indonesia during the tax year intending to reside here. Residents are taxed on worldwide income at Pasal 17 rates.
Non-residents pay a flat 20% PPh 26 on Indonesian-source income such as employment income for work in Indonesia, fees and royalties, with no PTKP. A tax treaty may reduce or remove this.
Since the Job Creation Law, foreign nationals with certain skills who become Indonesian residents are taxed only on Indonesian-source income for their first four years, provided they are not using a treaty to avoid tax elsewhere. Indonesian citizens living abroad for more than 183 days who meet the conditions can stop being Indonesian tax residents.
If you have no NPWP
Withholding agents apply a 20% higher PPh 21 rate and a 100% higher PPh 23 rate to payees without a tax number. For Indonesian citizens this rarely bites now: since mid-2024 the 16-digit NIK on your ID card works as your NPWP once it is validated with DJP. See the NPWP guide.
Rates summarised from UU PPh as amended by UU HPP and implementing regulations, current as of 2 Oct 2026. Check DJP for your specific situation.