Philippines Income Tax Calculator

Philippines Income Tax System & TRAIN Law

In the Philippines, compensation income for individual employees is taxed under the Tax Reform for Acceleration and Inclusion (TRAIN) Law enforced by the Bureau of Internal Revenue (BIR). The tax structure provides progressive brackets with zero tax for low-to-middle income earners up to PHP 250,000 annually.

BIR Individual Tax Slabs

The annual income tax rates under the revised TRAIN Law schedule are:

• Up to PHP 250,000: 0% (Tax-exempt)
• PHP 250,001 – 400,000: 15% of the amount over PHP 250,000
• PHP 400,001 – 800,000: PHP 22,500 plus 20% of the amount over PHP 400,000
• PHP 800,001 – 2,000,000: PHP 102,500 plus 25% of the amount over PHP 800,000
• PHP 2,000,001 – 8,000,000: PHP 402,500 plus 30% of the amount over PHP 2,000,000
• Above PHP 8,000,000: PHP 2,202,500 plus 35% of the amount over PHP 8,000,000

Mandatory Statutory Contributions

Before computing withholding tax, mandatory employee contributions to SSS (Social Security System), PhilHealth (Philippine Health Insurance Corporation), and Pag-IBIG (Home Development Mutual Fund) are deducted from gross income.

Explore other tax calculators such as the Australia Income Tax Calculator or the Pakistan Income Tax Calculator.