This Indonesia personal income tax calculator helps you estimate PPh 21 based on the applicable TER (Tarif Efektif Rata-Rata) scheme. Input your salary details to see your estimated tax and take-home pay. 

How to Use the Personal Income Tax Calculator (Step-by-Step) 

  • Enter your gross income. 
  • Select your marital status and tax category. 
  • Review the estimated PPh 21 calculations based on the TER scheme. 
  • Use the result as a reference for payroll withholding or tax planning.

Once completed, the calculator displays an estimate based on the tax regulations in Indonesia

What is Personal Income Tax

Personal income tax is imposed on individuals based on income earned or received within a tax year. In Indonesia, taxable income includes any increase in economic capacity, whether from domestic or overseas sources — a requirement often overlooked in personal income tax reporting.  
In addition to recognizing foreign-sourced income, taxes paid overseas may be credited in the Indonesian annual tax return under Article 24 of the Income Tax mechanism.

Personal Income Tax Rates (PPh 21) in Indonesia

Indonesia applies progressive personal income tax rates under PPh 21. This means taxable income is divided into brackets, and each bracket is taxed at a different rate. Only the income within each bracket is taxed at that specific rate. 
In addition to recognizing foreign-sourced income, taxes paid overseas may be credited in the Indonesian annual tax return under Article 24 of the Income Tax mechanism.

Annual Taxable IncomeRate
IDR 0 – 60 million5%
Above IDR 60 million – 250 million15%
Above IDR 250 million – 500 million25%
Above IDR 500 million – 5 billion30%
Above IDR 5 billion35%

How is Personal Income Tax Calculated? 

Under the current tax framework, personal income tax is calculated in three main steps: 

Determine Gross Income

This includes salary, allowances, bonuses, and other taxable compensation.

Apply Allowable Deductions and Exemptions

Gross income is reduced by allowable deductions (such as job expense deductions and pension contributions) and the non-taxable income threshold (PTKP). The remaining amount is referred to as taxable income (Penghasilan Kena Pajak / PKP).

Apply Progressive Tax Rates or TER Scheme

The annual tax is calculated using progressive tax brackets. 

For employees, monthly PPh 21 withholding is generally calculated using the TER scheme, which applies effective rates based on income range and marital status to simplify payroll calculations. 

At year-end, total tax withheld must align with the annual progressive tax calculation.

Are Dividends Subject to Personal Income Tax?

Dividends received by individual taxpayers may be exempt from income tax if reinvested in Indonesia in accordance with prevailing regulations.

To qualify for the exemption
  • Dividends must be reinvested no later than the end of the third month following the tax year in which they are received. 
  • The investment must be maintained for at least three tax years. 
  • The reinvestment must be reported in the annual tax return. 

If these requirements are not met, the dividend is subject to 10% final income tax. 

For non-residents, dividends are generally subject to withholding tax. 
  • If the individual does not have an NPWP, the withholding rate is 20%.
  • If the individual has an NPWP, the rate is 10%; otherwise, it is 0% if the reinvestment requirements are met. 

Personal Income Tax in Indonesia for Expats and Non-Residents

Residents
  • Residents must report income from Indonesia and from abroad.
Non-residents
  • Non-residents are taxed only on income derived from Indonesia.

Non-residents without an NPWP are generally subject to 20% withholding tax on certain Indonesian-sourced income and are not required to file an annual tax return in Indonesia. 

Recent Regulatory and Policy Updates

Below are key regulatory developments affecting personal income tax administration and compliance in Indonesia.

Frequently Asked Questions

What is the difference between gross and gross-up salary?

Gross salary means the employer pays the employee’s income tax (PPh 21) without adding a tax allowance to the salary. Gross-up salary means the employer provides a tax allowance equal to the PPh 21 due, so the tax is calculated and deducted from the total income, resulting in a neutral impact on the employee’s take-home pay.

Who pays the PPh 21 tax under the gross method?

Under the gross method, the employer bears the employee’s PPh 21 liability. The tax is not deducted from the employee’s salary, and the employer pays it directly to the tax authority.

How does the gross-up tax calculation work?

Under the gross-up method, the employer adds a tax allowance to the employee’s salary equal to the PPh 21 payable. The tax is then calculated on the total income, including the allowance. The allowance effectively covers the tax deduction, so the employee’s net income remains unchanged.

Is gross-up better than gross salary for employees?

From the employee’s perspective, both methods can result in the same take-home pay. However, gross-up is often preferred for transparency because the tax is shown as part of the employee’s income and deduction, which may affect benefits or reporting structures.

Does gross-up increase take-home pay?

No. Gross-up does not increase take-home pay. It increases the reported income by adding a tax allowance, but the same amount is deducted as PPh 21 tax, resulting in no net gain for the employee.

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Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.