Income Tax Calculator (Philippines)
Updated November 2026 · Free · No sign-up
Calculate Philippine income tax — the TRAIN Law’s 2023+ schedule: 0% on the first ₱250,000, then 15/20/25/30% bands to 35% above ₱8M of taxable income, after SSS/PhilHealth/Pag-IBIG deductions and the ₱90,000 bonus exemption.
Quick answer: TRAIN brackets (2023 onward): ₱0-250k: 0%; 250-400k: 15%; 400-800k: 20%; 800k-2M: 25%; 2M-8M: 30%; 8M+: 35% — of TAXABLE income (gross − mandatory contributions − the ₱90k-exempt 13th month/bonuses). A ₱30,000/month earner pays ~₱1,300/month in withholding.
The TRAIN Schedule (2023+)
| Annual taxable income | Rate |
|---|---|
| ≤ ₱250,000 | 0% |
| ₱250,001 - 400,000 | 15% of excess over 250k |
| ₱400,001 - 800,000 | ₱22,500 + 20% over 400k |
| ₱800,001 - 2,000,000 | ₱102,500 + 25% over 800k |
| ₱2,000,001 - 8,000,000 | ₱402,500 + 30% over 2M |
| ₱8,000,000+ | ₱2,202,500 + 35% over 8M |
Taxable income = gross compensation − mandatory contributions (SSS, PhilHealth, Pag-IBIG) − the ₱90,000 exemption on 13th-month pay and bonuses − de minimis benefits within caps. Minimum wage earners: fully exempt including OT/holiday pay.
Worked Example
₱30,000/month + ₱30,000 13th month: contributions ~₱2,025/month; annual taxable ≈ 360,000 − 24,300 = ₱335,700 (bonus fully inside the ₱90k exemption) → tax = 15% × 85,700 = ₱12,855/year (~₱1,071/month). Effective rate: 3.3% — TRAIN’s design keeps modest earners nearly tax-free.
Withholding vs Annual
Employers withhold monthly per the BIR table and run year-end annualization (the December true-up); substituted filing means most single-employer workers never file a return. Job-changers mid-year: the new employer’s annualization needs your 2316 from the old one — the missing-2316 December tax shock is the classic PH payroll story.
Side Income
Freelance/mixed-income earners: the 8% gross-receipts option (in lieu of graduated rates + percentage tax) below ₱3M revenue — often cheaper above ~₱500k of profit margin math; registered via BIR 1901. Not tax advice — verify current BIR issuances. The full paycheck view: net-pay calculator.
Frequently Asked Questions
What are the Philippine tax brackets?
TRAIN 2023+: 0% to ₱250k, 15% to 400k, 20% to 800k, 25% to 2M, 30% to 8M, 35% above — on taxable income after mandatory contributions.
Is 13th-month pay taxable?
Exempt up to ₱90,000 combined with other bonuses — only the excess is taxed.
Are minimum wage earners taxed?
No — statutory minimum wage earners are income-tax-exempt, including their holiday/OT/night-differential pay.
Why did my December pay change?
Year-end annualization trues up the year’s withholding against actual liability — refunds or catch-up deductions land in December; missing a prior employer’s 2316 causes the big catch-ups.
Do most employees file tax returns?
No — substituted filing covers single-employer compensation earners; the employer’s 2316 IS the return.
✓ Formula verified • Last updated: November 3, 2026