What is the Indonesia Income Tax?
Indonesia's PPh 21 is a progressive income tax from 5% to 35%. Before the brackets apply, three deductions reduce income: an occupational cost allowance of 5% (capped at Rp6 million), JHT pension contributions, and the PTKP non-taxable income allowance.
PTKP depends on marital status and dependants, ranging from Rp54 million for a single person to Rp72 million for a married person with three children.
Formula & worked example
PPh 21 = 5% to Rp60m, 15% to Rp250m, 25% to Rp500m, 30% to Rp5bn, 35% above
Worked example: Rp20,000,000 a month is Rp240,000,000 a year. After the Rp6,000,000 occupational cost, Rp4,800,000 JHT and the Rp54,000,000 PTKP for a single person, taxable income is Rp175,200,000. PPh 21 comes to about Rp20,280,000, leaving net annual pay near Rp214,920,000.
How to use this indonesia income tax calculator
- Enter your monthly gross salary in rupiah.
- Select your PTKP status based on marriage and dependants.
- The 5% occupational cost deduction is applied automatically, capped at Rp6 million.
- Note that the taxable base is rounded down to the nearest thousand rupiah.
Smart tips
- Update your PTKP status after marriage or a new child — each dependant adds Rp4.5 million of allowance.
- The occupational cost deduction caps at Rp6 million a year, so it matters most at lower salaries.
- BPJS Kesehatan health contributions are separate and partly employer-funded.
- Employers usually withhold PPh 21 monthly, but an annual return (SPT) is still required.
- Bonuses and THR religious holiday allowance are taxable and can push you into a higher bracket.
Frequently asked questions
What are Indonesian income tax rates?
Progressive PPh 21 rates of 5%, 15%, 25%, 30% and 35% applied to taxable income after PTKP and other deductions.
What is PTKP?
Penghasilan Tidak Kena Pajak — the non-taxable income allowance, from Rp54 million for a single person up to Rp72 million with three dependants.
Is THR taxable?
Yes. The religious holiday allowance is taxable income and is included in the annual PPh 21 calculation.
Do I need to file a tax return in Indonesia?
Yes. Even with employer withholding, an annual SPT return must be filed, generally by 31 March.
Want the theory behind the numbers? Browse the Money Blog for worked guides.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 8 Sep 2026. How we check these numbers.