Income Tax Calculator (Philippines)

How Philippine income tax works

Individual income tax in the Philippines follows the graduated rates set by the TRAIN law. Tax is charged on your taxable income — your gross compensation minus your mandatory SSS, PhilHealth, and Pag-IBIG contributions. This calculator applies the brackets to either a monthly or annual figure and shows your estimated tax, income after tax, and effective rate.

The TRAIN law brackets

These annual rates have applied since 2023:

• ₱0 – ₱250,000: 0% — the first ₱250,000 is tax-exempt
• Over ₱250,000 – ₱400,000: 15% of the excess over ₱250,000
• Over ₱400,000 – ₱800,000: ₱22,500 + 20% of the excess over ₱400,000
• Over ₱800,000 – ₱2,000,000: ₱102,500 + 25% of the excess over ₱800,000
• Over ₱2,000,000 – ₱8,000,000: ₱402,500 + 30% of the excess over ₱2,000,000
• Over ₱8,000,000: ₱2,202,500 + 35% of the excess over ₱8,000,000

Monthly vs. annual

Income tax is fundamentally an annual figure. When you choose "per month," the calculator annualises your income (×12), computes the annual tax from the brackets, then divides back by 12. This estimates your monthly withholding. Your employer may instead use the BIR's semi-monthly or monthly withholding tables, which can differ by small amounts.

Why the first ₱250,000 matters

Because ₱250,000 of annual taxable income is exempt, employees earning roughly ₱20,000 a month or less typically owe little or no income tax once their contributions are deducted. This is the single biggest reason a net-pay figure can be higher than people expect.

This is an estimate

Enter your taxable income (after mandatory contributions), not your gross. The brackets here are the current TRAIN schedule. This tool doesn't model bonuses beyond the ₱90,000 exemption, business income, or other special cases — confirm anything important with the BIR or a tax professional.

FAQ

Is my 13th month pay taxed?

13th month pay and other benefits are exempt up to ₱90,000; only the excess is taxable.

What about the 8% optional tax?

Self-employed individuals and professionals below the VAT threshold may opt for a flat 8% rate instead of the graduated table. This calculator covers the graduated rates for employees.

Should I enter gross or taxable income?

Enter your taxable income — that's your gross pay minus your mandatory SSS, PhilHealth, and Pag-IBIG contributions. Entering gross pay would overstate the tax, since those contributions are deducted before the brackets apply.

Why might my payslip tax differ from this estimate?

This tool annualises your income and divides the result by 12, while employers often use the BIR withholding tables, which round differently per pay period. Bonuses, mid-year raises, and the ₱90,000 benefit exemption can also shift the actual withholding, so small differences are normal.

Is this calculator free and private?

Yes — it's free with no sign-up, and your income figures are computed in your browser and never sent to a server. It also works on any phone browser. Treat the result as an estimate, not official tax advice — confirm anything important with the BIR or a tax professional.