Property Tax Indonesia 2026: PBB, BPHTB & Rental Tax

Q: How much is the annual property tax (PBB) in Indonesia?

PBB (Pajak Bumi dan Bangunan) is calculated based on NJOP (government-assessed property value) at rates of 0.1-0.3% depending on the local government. The effective rate is applied to the NJOP minus a non-taxable threshold (NJOPTKP) which varies by region. For a property with NJOP of IDR 2 billion in Bali, annual PBB is typically IDR 2-6 million.

Q: What is BPHTB and when do you pay it?

BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) is a 5% transfer tax paid by the buyer when acquiring property rights. It is calculated on the transaction value or NJOP, whichever is higher, minus the NPOPTKP threshold (typically IDR 60-80 million depending on the region). BPHTB must be paid before the title transfer is processed.

Q: How is rental income taxed for property owners in Indonesia?

Rental income from property in Indonesia is subject to 10% PPh Final (final income tax). The tax is withheld by the tenant if they are a corporate entity, or self-reported by the landlord for individual tenants. As a final tax, it cannot be credited against other income tax obligations. This applies to both Indonesian and foreign property owners.

Zantara AI

Property Tax Indonesia 2026: Complete Guide

Property ownership in Indonesia comes with tax obligations. Here's everything you need to know.

Property Taxes Overview

Property Tax Types

When each applies

Feature	PBB Annual land/building tax	BPHTB Transfer/acquisition tax	PPh Final Seller's income tax	Rental Income Tax on rent received
When	Every year	On purchase	On sale	On rental income
Rate	~0.1-0.5% of NJOP	5% of value	2.5% of value	10% final
Paid by	Owner	Buyer	Seller	Owner
Due	End of August	Before transfer	Before transfer	Monthly/annually

Annual Property Tax (PBB)

What is PBB?

Pajak Bumi dan Bangunan

PBB (Land and Building Tax) is:

Annual tax on property ownership
Based on government-assessed value (NJOP)
Paid by property owner
Due by August each year

All landowners and building owners must pay PBB.

PBB Calculation

Component	Explanation
NJOP	Government assessed value
NJOPTKP	Tax-free threshold (varies by region)
Taxable value	NJOP minus NJOPTKP
Tax rate	0.1-0.5% (varies by region and value)

PBB Calculator

PBB Estimate

Estimate your annual property tax

Default Inputs

NJOP Value (IDR): 500,000,000
Region: Bali

Estimated Result

NJOP ValueRp 500.000.000

NJOPTKP (threshold)Rp 50.000.000

Taxable valueRp 450.000.000

Effective rateRp 0.10%

Annual PBBRp 450.000

Estimated total

Actual tax may vary based on local regulations

Rp 450.000

Paying PBB

Method	Details
Bank	BCA, Mandiri, BNI, etc.
Online	Various payment apps
Post Office	In person
Village office	Local payment point

Keep your SPPT (tax notice) as payment reference.

Transfer/Acquisition Tax (BPHTB)

What Buyers Pay

BPHTB - 5% Transfer Tax

BPHTB applies when you acquire property:

Purchase
Gift
Inheritance
Exchange

Rate: 5% of transfer value minus NJOPTKP Paid by: Buyer/recipient When: Before title transfer

BPHTB Calculation

Element	Calculation
Transaction value	Higher of price or NJOP
Minus NJOPTKP	Tax-free threshold
Tax base	Result
BPHTB	5% of tax base

Example

Item	Amount
Purchase price	IDR 2,000,000,000
NJOP	IDR 1,500,000,000
Use higher value	IDR 2,000,000,000
NJOPTKP	IDR 60,000,000
Tax base	IDR 1,940,000,000
BPHTB (5%)	IDR 97,000,000

Seller's Tax (PPh Final)

What Sellers Pay

Transaction	Tax Rate
Property sale	2.5% of transaction value
Land sale	2.5% of transaction value

Seller Tax

PPh Final 2.5% is: - Paid by seller - Based on transaction value (or NJOP if higher) - Due before title transfer - Final (no further income tax on gain)

Total Transfer Costs

Property Transfer Costs

Buyer and seller obligations

0 of 6 completed0/5 required

buyer

seller

Total Cost Summary

Party	Approximate Cost
Buyer	6-7% of value (BPHTB + notary + fees)
Seller	2.5-5% of value (PPh + agent if any)

Rental Income Tax

Tax on Rent Received

10% Final Tax

Rental income from property is subject to:

10% Final PPh on gross rental income

Applies to land and buildings
No deductions for expenses
Final (not added to other income)
Should be withheld by corporate tenants

Who Withholds?

Tenant Type	Tax Treatment
Corporate tenant	Must withhold 10%
Individual tenant	Landlord self-assesses

Reporting

Situation	Action
Corporate tenant	They issue bukti potong
Individual tenant	You report and pay
Mixed	Declare all in annual SPT

NJOP Explained

What is NJOP?

Government Assessed Value

NJOP (Nilai Jual Objek Pajak) is:

Government-assessed property value
Used for tax calculations
Usually lower than market value
Updated periodically

Find your NJOP on your SPPT (tax notice) or check at local tax office.

NJOP vs Market Value

Aspect	NJOP	Market Value
Set by	Government	Market
Typical level	50-80% of market	100%
Update frequency	Periodic	Real-time
Used for	Taxes	Transactions

Tax Planning Tips

Legal Ways to Minimize

Strategy	How It Works
Time acquisition	Year-end may allow planning
Structure ownership	PT PMA vs personal
Use NJOPTKP	Ensure threshold applied
Clear PBB on time	Avoid penalties
Document expenses	For future sale basis

Tax Compliance

Don't:

Under-report transaction values
Hide property ownership
Fail to pay PBB
Ignore rental income

Tax authorities cross-reference with BPN and notary records. Non-compliance creates problems when you want to sell.

Property via PT PMA

Different Treatment

Aspect	Personal	PT PMA
PBB	Same	Same
BPHTB	Same	Same
Sale PPh	2.5% final	Company income tax
Rental income	10% final	Company income tax
Depreciation	None	Yes, for buildings

Common Questions

Ask Zantara

AI-powered answers from our knowledge base

Property Tax Indonesia 2026: Complete Guide

Property ownership in Indonesia comes with tax obligations. Here's everything you need to know.

Property Taxes Overview

Property Tax Types

When each applies

Feature	PBB Annual land/building tax	BPHTB Transfer/acquisition tax	PPh Final Seller's income tax	Rental Income Tax on rent received
When	Every year	On purchase	On sale	On rental income
Rate	~0.1-0.5% of NJOP	5% of value	2.5% of value	10% final
Paid by	Owner	Buyer	Seller	Owner
Due	End of August	Before transfer	Before transfer	Monthly/annually

Annual Property Tax (PBB)

What is PBB?

Pajak Bumi dan Bangunan

PBB (Land and Building Tax) is:

Annual tax on property ownership
Based on government-assessed value (NJOP)
Paid by property owner
Due by August each year

All landowners and building owners must pay PBB.

PBB Calculation

Component	Explanation
NJOP	Government assessed value
NJOPTKP	Tax-free threshold (varies by region)
Taxable value	NJOP minus NJOPTKP
Tax rate	0.1-0.5% (varies by region and value)

PBB Calculator

PBB Estimate

Estimate your annual property tax

Default Inputs

NJOP Value (IDR): 500,000,000
Region: Bali

Estimated Result

NJOP ValueRp 500.000.000

NJOPTKP (threshold)Rp 50.000.000

Taxable valueRp 450.000.000

Effective rateRp 0.10%

Annual PBBRp 450.000

Estimated total

Actual tax may vary based on local regulations

Rp 450.000

Paying PBB

Method	Details
Bank	BCA, Mandiri, BNI, etc.
Online	Various payment apps
Post Office	In person
Village office	Local payment point

Keep your SPPT (tax notice) as payment reference.

Transfer/Acquisition Tax (BPHTB)

What Buyers Pay

BPHTB - 5% Transfer Tax

BPHTB applies when you acquire property:

Purchase
Gift
Inheritance
Exchange

Rate: 5% of transfer value minus NJOPTKP Paid by: Buyer/recipient When: Before title transfer

BPHTB Calculation

Element	Calculation
Transaction value	Higher of price or NJOP
Minus NJOPTKP	Tax-free threshold
Tax base	Result
BPHTB	5% of tax base

Example

Item	Amount
Purchase price	IDR 2,000,000,000
NJOP	IDR 1,500,000,000
Use higher value	IDR 2,000,000,000
NJOPTKP	IDR 60,000,000
Tax base	IDR 1,940,000,000
BPHTB (5%)	IDR 97,000,000

Seller's Tax (PPh Final)

What Sellers Pay

Transaction	Tax Rate
Property sale	2.5% of transaction value
Land sale	2.5% of transaction value

Seller Tax

PPh Final 2.5% is: - Paid by seller - Based on transaction value (or NJOP if higher) - Due before title transfer - Final (no further income tax on gain)

Total Transfer Costs

Property Transfer Costs

Buyer and seller obligations

0 of 6 completed0/5 required

buyer

seller

Total Cost Summary

Party	Approximate Cost
Buyer	6-7% of value (BPHTB + notary + fees)
Seller	2.5-5% of value (PPh + agent if any)

Rental Income Tax

Tax on Rent Received

10% Final Tax

Rental income from property is subject to:

10% Final PPh on gross rental income

Applies to land and buildings
No deductions for expenses
Final (not added to other income)
Should be withheld by corporate tenants

Who Withholds?

Tenant Type	Tax Treatment
Corporate tenant	Must withhold 10%
Individual tenant	Landlord self-assesses

Reporting

Situation	Action
Corporate tenant	They issue bukti potong
Individual tenant	You report and pay
Mixed	Declare all in annual SPT

NJOP Explained

What is NJOP?

Government Assessed Value

NJOP (Nilai Jual Objek Pajak) is:

Government-assessed property value
Used for tax calculations
Usually lower than market value
Updated periodically

Find your NJOP on your SPPT (tax notice) or check at local tax office.

NJOP vs Market Value

Aspect	NJOP	Market Value
Set by	Government	Market
Typical level	50-80% of market	100%
Update frequency	Periodic	Real-time
Used for	Taxes	Transactions

Tax Planning Tips

Legal Ways to Minimize

Strategy	How It Works
Time acquisition	Year-end may allow planning
Structure ownership	PT PMA vs personal
Use NJOPTKP	Ensure threshold applied
Clear PBB on time	Avoid penalties
Document expenses	For future sale basis

Tax Compliance

Don't:

Under-report transaction values
Hide property ownership
Fail to pay PBB
Ignore rental income

Tax authorities cross-reference with BPN and notary records. Non-compliance creates problems when you want to sell.

Property via PT PMA

Different Treatment

Aspect	Personal	PT PMA
PBB	Same	Same
BPHTB	Same	Same
Sale PPh	2.5% final	Company income tax
Rental income	10% final	Company income tax
Depreciation	None	Yes, for buildings

Common Questions

Ask Zantara

AI-powered answers from our knowledge base

Property Tax Indonesia 2026: Complete Guide

Property Tax Indonesia 2026: Complete Guide

Property Taxes Overview

Property Tax Types

Annual Property Tax (PBB)

What is PBB?

PBB Calculation

PBB Calculator

PBB Estimate

Default Inputs

Estimated Result

Paying PBB

Transfer/Acquisition Tax (BPHTB)

What Buyers Pay

BPHTB Calculation

Example

Seller's Tax (PPh Final)

What Sellers Pay

Total Transfer Costs

Property Transfer Costs

buyer

seller

Total Cost Summary

Rental Income Tax

Tax on Rent Received

Who Withholds?

Reporting

NJOP Explained

What is NJOP?

NJOP vs Market Value

Tax Planning Tips

Legal Ways to Minimize

Property via PT PMA

Different Treatment

Common Questions

Ask Zantara

Related Articles

Questions about how this applies to your case?

Property Tax Indonesia 2026: Complete Guide

Property Tax Indonesia 2026: Complete Guide

Property Taxes Overview

Property Tax Types

Annual Property Tax (PBB)

What is PBB?

PBB Calculation

PBB Calculator

PBB Estimate

Default Inputs

Estimated Result

Paying PBB

Transfer/Acquisition Tax (BPHTB)

What Buyers Pay

BPHTB Calculation

Example

Seller's Tax (PPh Final)

What Sellers Pay

Total Transfer Costs

Property Transfer Costs

buyer

seller

Total Cost Summary

Rental Income Tax

Tax on Rent Received

Who Withholds?

Reporting

NJOP Explained

What is NJOP?

NJOP vs Market Value

Tax Planning Tips

Legal Ways to Minimize

Property via PT PMA

Different Treatment

Common Questions

Ask Zantara

Related Articles

Questions about how this applies to your case?