philippines tax calculator

How this Philippines tax calculator works

This calculator estimates your annual and monthly income tax based on progressive tax rates under the Philippine TRAIN Law. It is helpful for employees who want a quick tax planning view before payroll, job changes, or salary negotiations.

To keep things practical, the calculator starts with gross income, then deducts mandatory contributions and the tax-exempt portion of 13th month pay and other benefits (up to ₱90,000). The result is your estimated taxable income, where the tax table is applied.

Tax brackets used in this tool

TRAIN (2023 onward)

• Up to ₱250,000: 0%
• ₱250,001 to ₱400,000: 15% of excess over ₱250,000
• ₱400,001 to ₱800,000: ₱22,500 + 20% of excess over ₱400,000
• ₱800,001 to ₱2,000,000: ₱102,500 + 25% of excess over ₱800,000
• ₱2,000,001 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

TRAIN (2018 to 2022)

• Up to ₱250,000: 0%
• ₱250,001 to ₱400,000: 20% of excess over ₱250,000
• ₱400,001 to ₱800,000: ₱30,000 + 25% of excess over ₱400,000
• ₱800,001 to ₱2,000,000: ₱130,000 + 30% of excess over ₱800,000
• ₱2,000,001 to ₱8,000,000: ₱490,000 + 32% of excess over ₱2,000,000
• Over ₱8,000,000: ₱2,410,000 + 35% of excess over ₱8,000,000

What’s included and not included

Included

• Progressive income tax brackets
• Mandatory contributions entered by the user
• Tax-exempt cap on 13th month and other benefits at ₱90,000
• Monthly and annual estimate outputs

Not included

• Complex mixed-income scenarios (employment + business)
• Special tax treatments, substitutions, and treaty provisions
• Late filing penalties, surcharge, and interest
• Real-time BIR table updates beyond the selected schedules

Simple example

If your monthly gross pay is ₱50,000, monthly contributions are ₱3,000, and tax-exempt benefits are within the ₱90,000 cap, your taxable income is lower than your annual gross by the deductions entered. The tool automatically annualizes your data, applies the correct bracket, and then shows both annual tax and monthly tax equivalent.

Tips for better estimates

• Use realistic contribution totals from your payslip.
• If your bonuses exceed ₱90,000, include the full amount in “benefits included in gross” so only the exempt part is removed.
• Recalculate when your salary, allowances, or deductions change.
• Compare 2018–2022 vs 2023 onward to understand policy impact.

Important disclaimer

This calculator is for educational and planning use only and is not tax advice. For official computation, filing requirements, and compliance, consult the Bureau of Internal Revenue (BIR), a licensed accountant, or a qualified tax professional in the Philippines.