Property Taxes in 2026: What Has Changed and What Has Not
Indonesia's property transaction tax structure has been stable for several years, but 2026 brings one significant incentive: the PPN DTP (Pajak Pertambahan Nilai Ditanggung Pemerintah) program under PMK No. 90/2025. This changes the VAT calculation for properties priced up to Rp 5 billion significantly. This guide covers the full tax picture for both buyers and sellers.
Seller's Tax: PPh Final 2.5%
The seller (penjual) is liable for income tax on the transaction value under the final income tax (PPh Final) regime. The rate is 2.5% of the transaction value or NJOP (Nilai Jual Objek Pajak — government tax value), whichever is higher.
This rate is established by PP No. 34/2016 and has not changed. Payment is made at the PPAT (Pejabat Pembuat Akta Tanah) office before signing the AJB (Akta Jual Beli).
Example: Selling a home for Rp 1,200,000,000 (Rp 1.2 billion).
PPh Final = Rp 1,200,000,000 × 2.5% = Rp 30,000,000
Buyer's Tax: BPHTB 5%
The buyer (pembeli) pays BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan — land and building acquisition duty) at the rate of 5% of the transaction value minus the NPOPTKP (tax-free threshold), as established by UU No. 28/2009.
The NPOPTKP varies by local government regulation. In Kabupaten Bogor, the NPOPTKP is Rp 60,000,000. In Kota Bogor, it is typically higher. Check the current NPOPTKP with your local BPRD (Badan Pendapatan Regional Daerah) or PPAT.
Example: Buying a property at Rp 1,200,000,000, NPOPTKP Rp 60,000,000.
Taxable base = Rp 1,200,000,000 − Rp 60,000,000 = Rp 1,140,000,000
BPHTB = Rp 1,140,000,000 × 5% = Rp 57,000,000
VAT (PPN): The Big Change for 2026
Under normal circumstances, selling a new property (rumah baru dari developer) triggers VAT (Pajak Pertambahan Nilai / PPN) at 11%. However, the Indonesian government has implemented a PPN DTP (Ditanggung Pemerintah — Borne by Government) incentive program under PMK No. 90/2025, effective January 1, 2026 through December 31, 2026.
PPN DTP rules:
- Properties priced ≤ Rp 2,000,000,000 (Rp 2 billion): PPN DTP 100% — you pay zero VAT
- Properties priced Rp 2 billion – Rp 5 billion: PPN DTP applies only to the first Rp 2 billion portion. You pay PPN on the excess above Rp 2 billion.
- Properties priced above Rp 5 billion: No PPN DTP. Full 11% PPN applies.
- Applies to new residential properties from developers (not secondary market sales)
Example 1 — Property at Rp 1.5 billion (below the Rp 2B threshold):
Normal PPN = Rp 1,500,000,000 × 11% = Rp 165,000,000
With DTP: Rp 0 (100% free)
Saving: Rp 165,000,000
Example 2 — Property at Rp 3.5 billion:
DTP applies to the first Rp 2 billion → Rp 2,000,000,000 × 11% = Rp 220,000,000 covered by government
PPN on excess: (Rp 3,500,000,000 − Rp 2,000,000,000) × 11% = Rp 1,500,000,000 × 11% = Rp 165,000,000 (paid by buyer)
Total PPN saving: Rp 220,000,000
PPAT Fee
The PPAT's fee for preparing and signing the AJB is a maximum of 1% of the transaction value, per PP No. 24/2016. In practice, most PPAT charge 0.5%–1%. This is negotiable, especially for high-value transactions.
Summary Table: All Transaction Costs
| Tax/Fee | Who Pays | Rate | On What Value |
|---|---|---|---|
| PPh Final | Seller | 2.5% | Transaction value or NJOP (whichever higher) |
| BPHTB | Buyer | 5% | Transaction value minus NPOPTKP |
| PPN (new property) | Buyer | 11% (or 0% with DTP 2026) | Transaction value (see DTP rules above) |
| PPAT fee | Typically split | Max 1% | Transaction value |
What the PPN DTP Means for Buyers in 2026
The DTP program is a direct-to-consumer subsidy that reduces the acquisition cost of new developer homes by up to 11% of price. For a Rp 1.5 billion new house, this is a Rp 165 million saving — real money that would otherwise have to come from your down payment or be rolled into the KPR loan. This incentive expires December 31, 2026 and has not been confirmed for renewal beyond that date.