Philippines Income Tax Calculator
Estimate your annual income tax for compensation income earners using the progressive rates under the TRAIN law (2023 onward rates).
How to use this income tax calculator in the Philippines
If you want to quickly estimate your withholding tax and take-home pay, this tool gives you a practical annualized view. Just enter your salary, taxable monthly earnings, annual bonus, and common government contributions. The calculator then applies Philippine graduated income tax rates and shows your estimated annual tax due.
This calculator is focused on compensation income and is best for employees who want a quick estimate. It does not replace payroll systems, BIR forms, or professional tax advice, but it helps you plan your budget with confidence.
Philippines income tax brackets (TRAIN law, 2023 onward)
The Philippines uses a progressive income tax system. This means the higher your taxable income, the higher the tax rate on the next portion of income.
| Taxable Annual Income | Income Tax Due |
|---|---|
| Not over ₱250,000 | 0% |
| Over ₱250,000 to ₱400,000 | 15% of excess over ₱250,000 |
| Over ₱400,000 to ₱800,000 | ₱22,500 + 20% of excess over ₱400,000 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500 + 25% of excess over ₱800,000 |
| Over ₱2,000,000 to ₱8,000,000 | ₱402,500 + 30% of excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of excess over ₱8,000,000 |
What this calculator includes
- Annualization of monthly basic salary and other taxable monthly earnings
- 13th month pay and bonus handling with the common ₱90,000 non-taxable threshold for 13th month and other benefits
- Employee-side SSS, PhilHealth, and Pag-IBIG deductions (based on your entries)
- Automatic bracket computation under the Philippine graduated tax table
How the estimate is computed
1) Annualize your regular taxable compensation
Monthly basic salary and other taxable monthly pay are multiplied by 12.
2) Apply bonus exemption rule
From your annual 13th month and bonuses, up to ₱90,000 is treated as non-taxable. Any amount above that is treated as taxable in this estimate.
3) Subtract deductions
The calculator subtracts annualized government contributions (SSS, PhilHealth, Pag-IBIG) and any additional annual deductions you enter.
4) Apply progressive tax rates
The final taxable income is matched against the proper bracket, and income tax due is computed using the base tax plus excess rate.
Sample scenario
Suppose your monthly basic pay is ₱40,000, taxable monthly allowance is ₱5,000, annual bonus is ₱100,000, and your monthly contributions total ₱2,200. The calculator annualizes salary, applies the ₱90,000 bonus exemption (so only ₱10,000 bonus portion is taxable), subtracts deductions, then computes tax due based on the resulting taxable income. This gives you an estimated annual tax and monthly withholding equivalent.
Tips to reduce surprise tax deductions
- Track all taxable and non-taxable benefits separately.
- Review payroll records monthly, not only year-end.
- Confirm that your government contributions are correctly posted.
- Prepare for taxable bonus amounts exceeding the exemption cap.
- Use annual projections early when negotiating compensation packages.
Frequently asked questions
Is this an official BIR calculator?
No. This is an educational estimator based on common income tax rules for employees.
Does this cover self-employed or mixed-income earners?
Not fully. Self-employed taxpayers may be under different regimes (graduated rates or optional tax structures) and may require separate business deductions and filing logic.
Is 13th month pay always tax-free?
Only up to the applicable threshold (commonly ₱90,000 together with other benefits). Amounts above that can become taxable.
Final note
Use this Philippines income tax calculator to plan your monthly cash flow, estimate withholding, and avoid year-end surprises. For filing and legal compliance, always cross-check with updated BIR issuances, your payroll team, or a licensed tax professional.