Buying a home is not only about the unit price. Several property taxes come up at each stage in Indonesia, from buying and owning to renting out and selling. Who pays, and how much, differs at each stage.
This article summarises the types of property tax in Indonesia by stage, with their legal basis, example calculations, and the incentives available in 2026.
PPN (Value Added Tax)
Buying a new home from a developer registered as a taxable entrepreneur (PKP) is subject to PPN. The PPN rate is 12%, but for most homes PPN is calculated on a tax base of 11/12 of the sale price, so the effective rate is 11%. For a Rp 1 billion home, the PPN is Rp 110 million.
Buying a resale home from an individual who is not a PKP is generally not subject to PPN.
2026 PPN DTP Incentive
Under Minister of Finance Regulation (PMK) Number 90 of 2025, the government covers 100% of the PPN on the portion of the sale price up to Rp 2 billion, for landed houses or apartment units priced at no more than Rp 5 billion. Key conditions include:
BPHTB (Land and Building Rights Acquisition Duty)
BPHTB is a regional tax paid by the buyer when acquiring rights to land and/or buildings. The formula is:
BPHTB = 5% × (NPOP − NPOPTKP)
The NPOP is generally the transaction price, and each region sets its NPOPTKP, with a minimum of Rp 80 million. Estimate it with the BPHTB Calculator.
PBB-P2 (Rural and Urban Land and Building Tax) is paid every year to the regency or city government. Under Law Number 1 of 2022 (UU HKPD):
Besides paying PBB, homeowners with a tax number (NPWP) also need to list the home as an asset in their annual tax return.
Income from renting out land and/or buildings is subject to final income tax of 10% of the gross rent, under Government Regulation Number 34 of 2017.
The seller pays final income tax on the transfer of land and/or buildings of 2.5% of the gross transfer value, under Government Regulation Number 34 of 2016. For a home sold at Rp 1 billion, the tax is Rp 25 million.
There are some exemptions, including:
In a home sale, generally the seller pays income tax and the buyer pays BPHTB, both before the Deed of Sale and Purchase is signed before the PPAT. The process is explained in PPJB vs AJB and Title Transfer Costs in 2026.
Assuming an NPOPTKP of Rp 80 million and a 5% BPHTB rate:
Besides government incentives, some developers offer promotions that cover the buyer's taxes. One example is the Feia cluster in Segara City, Bekasi, with Free PPN and Free BPHTB, plus no down payment. Promotion terms may change at any time, so please confirm the latest details with the marketing team.
What taxes apply when buying a home?
For a new home from a developer, the buyer pays PPN and BPHTB. For a resale home from an individual, generally only BPHTB.
What is the PPN on a home purchase in 2026?
The effective rate is 11%. However, under PMK Number 90 of 2025, the government covers 100% of the PPN on the portion of the price up to Rp 2 billion for eligible new homes handed over in 2026.
Who pays tax in a home sale?
Generally the seller pays 2.5% income tax, while the buyer pays BPHTB.
What is the PBB rate for a home?
The PBB-P2 rate is at most 0.5% under UU HKPD. The exact rate and NJOPTKP are set by each region.
Is rental income from a home taxed?
Yes. Rental income is subject to final income tax of 10% of the gross rent.
This article is general information and not tax advice. Tax rules may change, so consult a tax adviser, PPAT, or your local tax office about your situation.
For more information about Damai Putra Group homes, contact the Damai Putra Group Marketing Gallery via WhatsApp Official 0811 4466 888 or visit www.damaiputra.com.
This article summarises the types of property tax in Indonesia by stage, with their legal basis, example calculations, and the incentives available in 2026.
Property Taxes by Stage at a Glance
- When buying a new home: PPN (VAT) and BPHTB, paid by the buyer.
- While owning a home: PBB (land and building tax), paid by the owner or the party in control.
- When renting out a home: final income tax on rent, paid by the owner.
- When selling a home: final income tax on the transfer, paid by the seller. The buyer pays BPHTB.
1. Taxes When Buying a Home
PPN (Value Added Tax)
Buying a new home from a developer registered as a taxable entrepreneur (PKP) is subject to PPN. The PPN rate is 12%, but for most homes PPN is calculated on a tax base of 11/12 of the sale price, so the effective rate is 11%. For a Rp 1 billion home, the PPN is Rp 110 million.
Buying a resale home from an individual who is not a PKP is generally not subject to PPN.
2026 PPN DTP Incentive
Under Minister of Finance Regulation (PMK) Number 90 of 2025, the government covers 100% of the PPN on the portion of the sale price up to Rp 2 billion, for landed houses or apartment units priced at no more than Rp 5 billion. Key conditions include:
- A new, ready-to-occupy home delivered for the first time by a PKP developer.
- A house identity code registered in the government system.
- Handover (BAST) between 1 January and 31 December 2026.
- One person may use it for one landed house or one apartment unit.
BPHTB (Land and Building Rights Acquisition Duty)
BPHTB is a regional tax paid by the buyer when acquiring rights to land and/or buildings. The formula is:
BPHTB = 5% × (NPOP − NPOPTKP)
The NPOP is generally the transaction price, and each region sets its NPOPTKP, with a minimum of Rp 80 million. Estimate it with the BPHTB Calculator.
2. Taxes While Owning a Home: PBB
PBB-P2 (Rural and Urban Land and Building Tax) is paid every year to the regency or city government. Under Law Number 1 of 2022 (UU HKPD):
- The PBB-P2 rate is at most 0.5%.
- The NJOPTKP (non-taxable value) is at least Rp 10 million per taxpayer, and applies to only one property in each regency or city.
- The tax base is a percentage of the NJOP, between 20% and 100%, set by the region.
Besides paying PBB, homeowners with a tax number (NPWP) also need to list the home as an asset in their annual tax return.
3. Taxes When Renting Out a Home
Income from renting out land and/or buildings is subject to final income tax of 10% of the gross rent, under Government Regulation Number 34 of 2017.
- If the tenant is a business acting as a tax withholder, the tax is usually withheld by the tenant.
- If not, the owner pays it directly.
4. Taxes When Selling a Home
The seller pays final income tax on the transfer of land and/or buildings of 2.5% of the gross transfer value, under Government Regulation Number 34 of 2016. For a home sold at Rp 1 billion, the tax is Rp 25 million.
There are some exemptions, including:
- Transfers through inheritance.
- Individuals earning below the non-taxable income threshold who transfer property worth less than Rp 60 million.
In a home sale, generally the seller pays income tax and the buyer pays BPHTB, both before the Deed of Sale and Purchase is signed before the PPAT. The process is explained in PPJB vs AJB and Title Transfer Costs in 2026.
Tax Simulation for a Rp 1 Billion New Home
Assuming an NPOPTKP of Rp 80 million and a 5% BPHTB rate:
- Without incentives: PPN of Rp 110 million and BPHTB of Rp 46 million, a total of about Rp 156 million.
- With the 2026 PPN DTP: PPN of Rp 0 and BPHTB of Rp 46 million, a total of about Rp 46 million.
Promotions That Ease the Buyer's Tax Burden
Besides government incentives, some developers offer promotions that cover the buyer's taxes. One example is the Feia cluster in Segara City, Bekasi, with Free PPN and Free BPHTB, plus no down payment. Promotion terms may change at any time, so please confirm the latest details with the marketing team.
Frequently Asked Questions
What taxes apply when buying a home?
For a new home from a developer, the buyer pays PPN and BPHTB. For a resale home from an individual, generally only BPHTB.
What is the PPN on a home purchase in 2026?
The effective rate is 11%. However, under PMK Number 90 of 2025, the government covers 100% of the PPN on the portion of the price up to Rp 2 billion for eligible new homes handed over in 2026.
Who pays tax in a home sale?
Generally the seller pays 2.5% income tax, while the buyer pays BPHTB.
What is the PBB rate for a home?
The PBB-P2 rate is at most 0.5% under UU HKPD. The exact rate and NJOPTKP are set by each region.
Is rental income from a home taxed?
Yes. Rental income is subject to final income tax of 10% of the gross rent.
This article is general information and not tax advice. Tax rules may change, so consult a tax adviser, PPAT, or your local tax office about your situation.
For more information about Damai Putra Group homes, contact the Damai Putra Group Marketing Gallery via WhatsApp Official 0811 4466 888 or visit www.damaiputra.com.
