PPh 21 for Expats in Indonesia 2026: Income Tax Rates, Calculation & Payslip
PPh 21 is the income tax withheld from your salary by your employer. If you work in Indonesia, this is your primary tax obligation.
Key Takeaways
TL;DR: PPh 21 is income tax withheld by your Indonesian employer. Progressive rates: 5% (up to IDR 60M), 15% (60-250M), 25% (250-500M), 30% (500M-5B), 35% (above 5B). PTKP personal allowance: IDR 54M/year (single). Since 2024, employers may use the simplified TER method. Monthly withholding is reported by employer — you reconcile in annual SPT.
2026 Tax Rates
Indonesia uses progressive tax rates:
PPh 21 Tax Brackets
Progressive rates for annual taxable income
| Feature | Bracket 1 | Bracket 2 | Bracket 3 | Bracket 4 | Bracket 5 |
|---|---|---|---|---|---|
| Income Range | IDR 0 - 60M | IDR 60M - 250M | IDR 250M - 500M | IDR 500M - 5B | Over IDR 5B |
| Tax Rate | 5% | 15% | 25% | 30% | 35% |
| Max Tax | IDR 3M | IDR 28.5M | IDR 62.5M | IDR 1.35B | Unlimited |
Tax Calculator
PPh 21 Calculator
Estimate your annual income tax
Default Inputs
- Monthly Gross Salary
- 50,000,000 IDR
- Monthly Allowances
- 10,000,000 IDR
- Annual Bonus (months)
- 1 month
- Marital Status (PTKP)
- Single (TK/0)
- Have NPWP?
- Yes
Estimated Result
Estimated total
Effective rate: 20.6%
Rp 158.800.000
PTKP (Tax-Free Allowance)
PTKP is the amount of income exempt from tax:
| Status | Code | Annual PTKP |
|---|---|---|
| Single | TK/0 | IDR 54,000,000 |
| Married, no kids | K/0 | IDR 58,500,000 |
| Married + 1 child | K/1 | IDR 63,000,000 |
| Married + 2 children | K/2 | IDR 67,500,000 |
| Married + 3 children | K/3 | IDR 72,000,000 |
- Register dependents properly with HR - Maximum 3 dependents (children) - Dependents must live with you - Spouse only counts if not working
What's Taxable?
Included in PPh 21:
- Base salary
- Allowances (housing, transport, meals)
- Bonuses and THR
- Benefits in kind (some)
- Stock options (when exercised)
Exempt:
- BPJS employer contributions
- Certain work tools/equipment
- Some business travel reimbursements
No NPWP = Higher Tax
If you don't have NPWP, your employer withholds 20% more tax. This adds up quickly:
- With NPWP: IDR 50M tax
- Without NPWP: IDR 60M tax
Get your NPWP to avoid this penalty.
Common Questions
Ask Zantara
AI-powered answers from our knowledge base
Suggested questions:
Related Articles
Topics
Zantara AI
AI Tax Advisor
Questions about how this applies to your case?
Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsApp