Is there an inheritance tax in Indonesia?

No. Indonesia has no inheritance tax or estate duty. An inheritance received by an heir is excluded from taxable income under UU PPh Pasal 4(3)(b), provided the inherited assets were properly reported. The headline tax on receiving a bequest is therefore zero.

So why does inheriting property cost money?

When inherited land or a building is re-titled into the heir's name, BPHTB (acquisition duty) applies, just like a purchase. The rate is 5% of the value above the inheritance threshold. Many regions grant a higher non-taxable threshold for inheritance and a 50% reduction on the duty, but it is rarely zero, and notary and name-transfer fees apply on top.

What is the inheritance NPOPTKP threshold?

The non-taxable threshold for inheritance and grant transfers (NPOPTKP waris/hibah) is set by each regency or city and is typically higher than for an ordinary purchase, commonly up to Rp 300,000,000. Only the value above that threshold is subject to the 5% BPHTB. The calculator lets you set your region's figure.

Do all heirs get the 50% BPHTB reduction?

Many regions grant a 50% reduction on BPHTB for inheritance transfers, but it is a local policy, not a national guarantee. Some regions offer a different reduction or none. Check with your local Bapenda (regional revenue office) or PPAT, and set the relief percentage in the tool to match.

What other costs come with re-titling inherited property?

Beyond BPHTB you will pay notary/PPAT fees to handle the inheritance deed and the balik nama (name transfer) at the land office (BPN), plus certificate and registration fees. You also typically need the death certificate, a certificate of inheritance, and the heirs' agreement. Budget a couple of percent of the property value for these.

Indonesia Inheritance Tax Calculator

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The Indonesia inheritance tax calculator clears up a common misconception: Indonesia has no inheritance tax. What it does have is BPHTB acquisition duty when inherited property is re-titled. This tool confirms the zero income tax and computes the real cost of transferring an inherited home.

How it works

Two things happen when you inherit:

Inheritance income tax = Rp 0. Under UU PPh Pasal 4(3)(b), an inheritance is excluded from the heir’s taxable income, provided the assets were properly reported.
BPHTB on re-titling property. When land or a building is transferred into the heir’s name, BPHTB applies at 5% of the value above the inheritance threshold, often with a regional reduction:

taxable           = property value - inheritance threshold
BPHTB before relief = taxable x 5%
BPHTB after relief  = BPHTB before relief x (1 - relief%)

Notary and name-transfer fees are added on top.

Worked example

Inheriting a Rp 1,500,000,000 house with a Rp 300,000,000 inheritance threshold leaves Rp 1,200,000,000 taxable. BPHTB at 5% is Rp 60,000,000 before relief; a common 50% reduction cuts it to Rp 30,000,000. Add roughly 1.5% (Rp 22,500,000) in notary and transfer fees, and the total cost to re-title is about Rp 52,500,000 — with zero inheritance income tax.

Tips and notes

The inheritance threshold and any BPHTB reduction are local policies that vary by regency or city — confirm yours.
Keep the death certificate, certificate of inheritance, and heirs’ agreement ready for the notary and land office.
All figures are calculated in your browser. Nothing is uploaded or stored.