13th-Month & Bonus Tax Calculator (Philippines)

Is your 13th-month pay taxed?

In the Philippines, your 13th-month pay and other bonuses are tax-exempt up to ₱90,000 per year under the TRAIN law. Only the portion above ₱90,000 is taxable, and it's taxed at your marginal income-tax rate — the rate that applies to the top slice of your annual income. So if your 13th-month pay alone is under ₱90,000, it usually arrives completely tax-free.

What counts toward the ₱90,000 cap

The ₱90,000 ceiling covers your 13th-month pay plus other benefits added together, including:

• 14th-month pay and other Christmas or anniversary bonuses
• Productivity and performance bonuses
• The excess of "de minimis" benefits over their own separate limits

Add all of these into the two fields. Once the running total passes ₱90,000, everything beyond it is taxable.

How the tax on the excess is worked out

The taxable excess is added to your regular income and taxed at your marginal rate. The TRAIN brackets (2023 onward) are 0% up to ₱250,000 of annual taxable income, then 15%, 20%, 25%, 30%, and 35% for higher bands. Pick the bracket that matches your annual income, and the calculator estimates the tax on the excess. Because it uses your top marginal rate, treat it as a close estimate rather than an exact payroll figure.

FAQ

Was the exemption always ₱90,000?

No. It was ₱82,000 before the TRAIN law raised it to ₱90,000 effective 2018. The ₱90,000 figure is current.

Are de minimis benefits separate from this?

Yes. De minimis benefits (like a rice allowance or uniform allowance) have their own specific limits and are tax-exempt within them. Only the amount exceeding those limits gets added to the ₱90,000 bonus cap.

Does my employer withhold this automatically?

Usually yes — employers factor the taxable excess into your withholding. This tool helps you check the figure or plan ahead before bonuses are released.