Latest Progressive Tax Rates 2024 Types & Examples

Knowing the latest progressive tax rates for 2023 is very important, especially for those of you who are looking to add a new vehicle. This way, you can calculate and manage your finances wisely. For more details, please pay attention to the following review.

Overview of Progressive Tax Rates

The progressive tax rate is a tax rate that must be paid by every Indonesian citizen. Especially for taxpayers personally or as motor vehicle owners. The percentage of the tax rate depends on the number of motor vehicles purchased or owned by an individual. The more motor vehicles collected, the higher the tax rate imposed.

Types of Progressive Tax Rates and Their Examples

As previously explained, the progressive tax rate does not only apply to motor vehicle owners. To help you understand better, let's recognize the types of progressive tax rates below.

1. Progressive-Progressive Tax Rate

The first type is the progressive-progressive tax rate, which is usually applied to calculate personal income tax. The percentage of the tax rate imposed is directly proportional to the size of the tax object. Here is the calculation.

An individual with an income of Rp50 million must pay a tax rate of 5%, which is Rp2,500,000.
An individual with an income of Rp50 million to Rp250 million must pay a tax rate of 15%, which is around Rp7,500,000 to Rp37,500,000.
An individual with an income of Rp250 million to Rp500 million must pay a rate of 25%, which is around Rp62,500,000 to Rp125,000,000.
An individual with an income above Rp500 million must pay a tax rate of 30% or around Rp150,000,000.

2. Proportional Progressive Tax Rate

This type of tax rate will experience a fixed tax increase, such as stamp duty which previously was Rp6,000 becoming Rp10,000.

3. Degressive Tax Rate

The next type is the degressive tax rate. This tax rate decreases over time from the tax object. For example, if you own an older motor vehicle (for example, from the 80s). The amount of tax paid is different from the tax rate for newer motor vehicles.

How to Calculate Progressive Car Tax Rates

After you know some types of progressive tax rates, you need to know how to calculate them. To avoid confusion, let’s look at the implementation of progressive tax rate calculations on cars below.

The percentage increase in progressive tax rates in the DKI Jakarta area based on the number of motor vehicles owned:

First Ownership: 2% (two percent)
Second Ownership: 3% (three percent)
Third Ownership: 4% (four percent)
Fourth Ownership: 5% (five percent)
Fifth Ownership and Beyond: 6% (six percent)

The percentage increase in progressive tax rates in the West Java area based on the number of motor vehicles owned:

First Ownership: 1.75% (one point seven five percent)
Second Ownership: 2.25% (two point two five percent)
Third Ownership: 2.75% (two point seven five percent)
Fourth Ownership: 3.25% (three point two five percent)
Fifth Ownership and Beyond: 3.75% (three point seven five percent)

After you know the percentage increase in progressive tax rates, you can calculate the selling value of the motor vehicle or NJKB. For those of you who are confused about how to calculate it, please pay attention to the following method.

Example:

Formula: NJKB = (PKB:2) x 100

If the PKB on your car's STNK is Rp2,000,000, then your NJKB is Rp100 million. This result is obtained from the following calculation NJKB = (2,000,000 : 2) x 100 = Rp100,000,000.

For example, if you have two Daihatsu cars in Jakarta with the same type and year of manufacture. To calculate the progressive tax, you need to use the following formula NJKB x percentage.

Example:

Tax for your first car

PKB = (Rp100,000,000 x 2%) = Rp2,000,000.

SWDKLLJ = Rp200,000

Total = Rp2,200,000.

Progressive tax for the second car

PKB = (Rp100,000,000 x 3%) = Rp3,000,000

SWDKLLJ = Rp200,000

Total = Rp3,200,000

So, if you have two cars, the progressive tax rate you must pay is Rp5,400,000.

How about that, isn’t it easy to calculate?