How is income tax calculated in Indonesia?
Indonesia taxes residents at 5% up to IDR 60 million, then 15%, 25%, 30%, and 35% above IDR 5 billion. A single taxpayer gets personal relief of IDR 54 million a year.
Employees deduct occupational expenses of 5% of gross income (at most IDR 6 million a year), their 2% old-age saving contribution and their 1% pension contribution, which is capped at IDR 110,863 a month.
Employees also pay 1% for healthcare, on monthly pay up to IDR 12 million; this is not listed as deductible.
What is the income tax rate in Indonesia?
| Taxable income | Rate |
|---|---|
| IDR 0 – IDR 60,000,000 | 5% |
| IDR 60,000,000 – IDR 250,000,000 | 15% |
| IDR 250,000,000 – IDR 500,000,000 | 25% |
| IDR 500,000,000 – IDR 5,000,000,000 | 30% |
| Over IDR 5,000,000,000 | 35% |
What mandatory salary deductions apply?
- Old age saving, BPJS Ketenagakerjaan (employee): 2% of pay.
- Pension, BPJS Ketenagakerjaan (employee): 1% of pay, on up to 11,086,300 a month.
- Healthcare, BPJS Kesehatan (employee): 1% of pay, on up to 12,000,000 a month.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: IDR 54,000,000 a month
An employee earning 54,000,000 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | IDR 54,000,000 | IDR 648,000,000 |
| Income tax | IDR 9,676,074 | IDR 116,112,893 |
| Compulsory contributions | IDR 1,310,863 | IDR 15,730,356 |
| Take-home pay | IDR 43,013,063 | IDR 516,156,751 |
Effective income tax rate 17.9%; all deductions 20.3%.
Frequently asked questions
How much is tax-free in Indonesia?
A single taxpayer gets IDR 54 million personal relief, plus the occupational expense and contribution deductions.
What social security does an employee pay?
2% old-age saving, 1% pension (up to IDR 110,863 a month) and 1% healthcare (on pay up to IDR 12 million a month).
What is the top rate?
35% on taxable income above IDR 5 billion.
Official sources
- PwC Worldwide Tax Summaries (reviewed 11 June 2026): Indonesia - Individual - Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 11 June 2026): Indonesia - Individual - Deductions. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 11 June 2026): Indonesia - Individual - Other taxes. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
← Compare Indonesia with other countries in the worldwide income tax calculator