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.