Philippine Income Tax Calculator

Based on the current TRAIN Law schedule

This calculator uses the TRAIN Law income tax schedule that remains in force as of March 13, 2026. Annual taxable income up to PHP 250,000 remains tax-exempt.

Current Philippine Tax Brackets

Taxable Income Bracket Base Tax Rate Of excess over
Up to PHP 250,000PHP 00%-
PHP 250,001 - PHP 400,000PHP 015%PHP 250,000
PHP 400,001 - PHP 800,000PHP 22,50020%PHP 400,000
PHP 800,001 - PHP 2,000,000PHP 102,50025%PHP 800,000
PHP 2,000,001 - PHP 8,000,000PHP 402,50030%PHP 2,000,000
Over PHP 8,000,000PHP 2,202,50035%PHP 8,000,000

Understanding Philippine Income Tax

The Tax Reform for Acceleration and Inclusion (TRAIN) Law, or Republic Act No. 10963, changed the personal income tax structure in the Philippines. The current BIR compensation withholding schedules still use the 2023-onward TRAIN Law brackets as of March 13, 2026.

Key Features of the Current Schedule

  • Higher tax exemption: Annual taxable income up to PHP 250,000 is exempt.
  • Progressive brackets: Rates increase only as income crosses each threshold.
  • Mandatory contributions matter: SSS, PhilHealth, and Pag-IBIG reduce taxable compensation.
  • Bonuses and 13th month pay: Exempt up to the current statutory ceiling when qualified.

How Tax is Computed

  1. Start with gross annual income.
  2. Subtract mandatory contributions and allowable monthly deductions.
  3. Apply the correct tax bracket to annual taxable income.
  4. Convert annual tax to monthly withholding if needed.