Income Tax Philippines
Philippine income tax calculator using BIR TRAIN progressive brackets. Enter salary and SSS/PhilHealth/Pag-IBIG to compute taxable income, withholding tax, net pay, and effective rate.
About This Calculator
The Income Tax Calculator (Philippines) helps you compute your withholding tax liability under the Bureau of Internal Revenue (BIR) graduated tax table as prescribed by the TRAIN Law (Republic Act No. 10963). Simply enter your annual gross income and your monthly SSS, PhilHealth, and Pag-IBIG contributions to instantly see your taxable income, income tax due, net pay after tax, net pay after all deductions, and effective tax rate.
The calculator applies the BIR's progressive tax brackets: the first ₱250,000 of taxable income is tax-exempt at 0%. Income between ₱250,001 and ₱400,000 is taxed at 15%; ₱400,001 to ₱800,000 at 20%; ₱800,001 to ₱2,000,000 at 25%; ₱2,000,001 to ₱8,000,000 at 30%; and anything above ₱8,000,000 at 35%. The formula used is: tax = fixed tax + rate × (taxable income − compensation level), where each bracket has a precomputed fixed tax that accounts for the lower brackets' burden.
Results include a detailed breakdown showing which bracket applies to your income, two interactive chart views (a pie chart of income distribution and a bar chart comparing gross income, tax, and net pay), and a step-by-step breakdown table. The shareable URL feature preserves your inputs so you can bookmark or share results with your accountant or HR department.
Country Notes
This calculator is specific to the Philippines and uses the BIR revised withholding tax table effective 2023 onward. SSS, PhilHealth, and Pag-IBIG contribution defaults are based on typical 2025 rates for employed individuals earning ₱40,000/month. Self-employed individuals, professionals, and voluntary contributors have different contribution schedules — adjust the contribution fields accordingly for your situation. The 8% optional tax on gross receipts (available to self-employed individuals with gross sales under ₱3 million) is not covered by this calculator; it computes tax under the graduated rates only.
Frequently Asked Questions
How is income tax calculated in the Philippines?
Philippine income tax is calculated using the BIR's graduated withholding tax table. First, subtract your total annual SSS, PhilHealth, and Pag-IBIG contributions from your gross annual income to get your taxable income. Then apply the progressive tax rates: 0% on the first ₱250,000, 15% on ₱250,001-₱400,000, 20% on ₱400,001-₱800,000, 25% on ₱800,001-₱2,000,000, 30% on ₱2,000,001-₱8,000,000, and 35% on any amount above ₱8,000,000. The formula is tax = fixed tax + rate x (taxable income - compensation level).
Is ₱20,000 monthly income taxable in the Philippines?
No, a monthly income of ₱20,000 is not taxable in the Philippines. After deducting monthly contributions of around ₱2,200 (SSS ₱1,350, PhilHealth ₱750, Pag-IBIG ₱100), your taxable income drops to about ₱17,800, which is well below the ₱20,833 monthly threshold (₱250,000 annual exemption).
How much tax do I pay on ₱30,000 monthly salary in the Philippines?
For a monthly salary of ₱30,000, after deducting total contributions of approximately ₱2,200, your taxable income is ₱27,800. Using the BIR table, this falls in the 15% bracket over ₱20,833, resulting in a monthly withholding tax of ₱1,045.05 (15% of ₱6,967).
What are SSS, PhilHealth, and Pag-IBIG contributions?
SSS (Social Security System) provides insurance benefits for sickness, disability, maternity, and retirement. PhilHealth (Philippine Health Insurance Corporation) covers medical and hospitalization expenses. Pag-IBIG Fund (Home Development Mutual Fund) helps members save and access housing loans. These are mandatory monthly contributions for employed individuals, deducted from gross salary before computing taxable income.
What is the tax rate for ₱250,000 annual taxable income in the Philippines?
In the Philippines, the first ₱250,000 of annual taxable income is tax-exempt. You pay 0% tax on this amount. A taxable income of exactly ₱250,000 means zero income tax. Only income above ₱250,000 is subject to the progressive tax brackets under the TRAIN Law.
How do I compute my taxable income in the Philippines?
To compute taxable income, start with your gross annual income. Subtract your total annual contributions (SSS + PhilHealth + Pag-IBIG x 12 months). The result is your taxable income. Then apply the BIR progressive withholding tax table to determine your income tax liability.
Is the Philippine income tax calculator free to use?
Yes, this Philippine income tax calculator is completely free to use with no registration required. You can save and share your calculation results via the URL, which preserves all your input values.