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Philippines Income Tax Calculator
Calculate Philippine income tax with the TRAIN graduated tax table, current SSS and PhilHealth contribution ceilings, Pag-IBIG contributions, 13th month pay, and OSD vs itemized deductions.
Income Tax⧉
₱6,759.23
BIR graduated tax table
SSS⧉
₱21,000.00
Employee SSS contribution using the current contribution table
PhilHealth⧉
₱13,846.15
Employee PhilHealth share using the current premium ceiling
Pag-IBIG⧉
₱2,400.00
Employee HDMF contribution
Total Deductions⧉
₱44,005.38
Tax + mandatory contributions
Net Annual Income⧉
₱555,994.62
Take-home after all deductions
Monthly Net⧉
₱46,332.88
Monthly take-home pay
Effective Rate⧉
1.13%
Income tax ÷ gross income
Marginal Rate⧉
15%
Rate on your last peso earned
13th Month Pay⧉
₱46,153.85
Assumes annual gross includes one standard 13th-month payment when enabled
13th Month Exempt⧉
₱46,153.85
Excluded from taxable income up to the ₱90,000 statutory cap
13th Month Taxable⧉
₱0.00
Only the portion above ₱90,000 is added back into taxable income
Tax Bracket Visualization
15%₱6,759.23
| Bracket | Rate | Taxable | Tax |
|---|---|---|---|
| ₱0.00–₱250,000.00 | 0% | ₱250,000.00 | ₱0.00 |
| ₱250,000.00–₱400,000.00 | 15% | ₱45,061.54 | ₱6,759.23 |
| Total Income Tax | ₱6,759.23 | ||
| Contribution | Monthly | Annual |
|---|---|---|
| SSS | ₱1,750.00 | ₱21,000.00 |
| PhilHealth | ₱1,153.85 | ₱13,846.15 |
| Pag-IBIG | ₱200.00 | ₱2,400.00 |
| Total | ₱3,103.85 | ₱37,246.15 |
Planning notes, formulas, and examples
About the Philippines Income Tax Calculator
The Philippines uses a graduated income tax system reformed under the TRAIN Law (Tax Reform for Acceleration and Inclusion), which significantly increased the tax-exempt threshold and simplified rates. Income up to ₱250,000 annually is tax-exempt, with rates ranging from 15% to 35% for income exceeding ₱8,000,000. That structure makes it easier to estimate tax once you know where your income falls in the bracket table.
In addition to income tax, Filipino employees contribute to three mandatory social benefit programs: SSS (Social Security System), PhilHealth (Philippine Health Insurance Corporation), and Pag-IBIG/HDMF (Home Development Mutual Fund). These contributions are shared between employer and employee and reduce monthly take-home pay. SSS and PhilHealth employee-side ceilings have moved, so this calculator uses the contribution caps in effect for the figures shown here rather than older pre-2025 values.
This calculator computes your Philippine tax estimate using the BIR graduated tax table, including the three major mandatory contribution programs. It supports both Optional Standard Deduction (OSD) at 40% and itemized deductions, and accounts for the tax-exempt threshold that applies to 13th month pay and similar benefits.
When This Page Helps
Use this estimate to compare take-home pay under different deduction choices, check the impact of mandatory contributions, and see how 13th month pay affects annual tax exposure. It also helps you compare OSD versus itemized deductions before you file, which is useful when you want to estimate the net benefit of each approach.
How to Use the Inputs
- Enter your total annual gross compensation income
- Choose between Optional Standard Deduction (40%) or itemized deductions
- Indicate your SSS, PhilHealth, and Pag-IBIG contribution status
- Select whether you receive 13th month pay
- Review your tax breakdown, contribution table, and monthly net pay
- Compare OSD vs itemized to see which saves more tax
Formula used
BIR Graduated Tax Table (TRAIN Law):
- ₱0–250,000: 0% (exempt)
- ₱250,001–400,000: 15% of excess over ₱250,000
- ₱400,001–800,000: ₱22,500 + 20% of excess over ₱400,000
- ₱800,001–2,000,000: ₱102,500 + 25% of excess over ₱800,000
- ₱2,000,001–8,000,000: ₱402,500 + 30% of excess over ₱2,000,000
- ₱8,000,001+: ₱2,202,500 + 35% of excess over ₱8,000,000
13th-month handling on this page: if enabled, the calculator assumes annual gross includes one standard 13th-month payment, excludes up to ₱90,000 of that amount, and taxes only any excess.Example Calculation
Result: About ₱6,759 annual income tax
With ₱600,000 of annual gross income, the page assumes one standard 13th-month payment, removes that exempt amount from taxable income, subtracts employee SSS/PhilHealth/Pag-IBIG contributions, and then applies the 40% optional standard deduction. The remaining taxable income is about ₱295,062, so income tax is roughly 15% of the amount above ₱250,000, or about ₱6,759.
Tips & Best Practices
- Income under ₱250,000/year (₱20,833/month) is completely tax-free
- Compare OSD (40%) vs itemized deductions — OSD is often better for most workers
- Your 13th month bonus is tax-free up to ₱90,000 combined with other benefits
- SSS contributions are mandatory but provide maternity, disability, and retirement benefits
- File BIR Form 2316 (for employees) or 1701A (simplified for self-employed) on time
What This Estimate Includes
Philippine payroll calculations are not just about the BIR rate table. SSS, PhilHealth, and Pag-IBIG contributions all affect net pay, and the final answer also changes when you compare OSD against itemized deductions. Bringing those pieces together is the main value of this calculator.
Check The Filing Context
Employees who receive purely compensation income often rely on employer withholding and Form 2316, while self-employed taxpayers may need different BIR forms and quarterly filings. Use the result as a planning estimate, then match it to your actual filing category before treating it as a filing-ready number. That keeps the calculator useful as a planning tool without pretending to replace official filing guidance.
Important Limitations
Contribution ceilings, implementation schedules, and tax rules can change. If you are using this for payroll, business planning, or year-end filing, confirm the applicable BIR and agency guidance before relying on the output.
Sources & Methodology
Last updated:
Methodology
This page applies the Philippines TRAIN graduated income-tax table to the user's annual taxable income, then layers on simplified employee-side SSS, PhilHealth, and Pag-IBIG contributions together with the 13th month pay exemption cap and an Optional Standard Deduction versus itemized comparison. It is a payroll-style planning worksheet rather than a full BIR return engine.
The result is intentionally simplified around annual pay and contribution ceilings. Real filing treatment depends on the taxpayer category, compensation-vs-business classification, withholding certificates, and the exact agency rules in force at filing time.
Sources
- BIR Form No. 1701Q - Guidelines and Instructions (Bureau of Internal Revenue) — BIR instructions covering the graduated tax table and 40% Optional Standard Deduction for individual taxpayers in the relevant filing context.
- BIR Form No. 1701Q (Bureau of Internal Revenue) — BIR form text showing graduated-rate and 8% options plus OSD selection.
- BIR Withholding Tax Calculator (Bureau of Internal Revenue) — BIR withholding calculator showing the P90,000 13th month pay and other benefits ceiling.
- SSS Contribution Table (Social Security System) — Current SSS contribution schedule used for employee-side payroll estimates.
- Facilitating Benefit Availment: Employer (PhilHealth) — PhilHealth employer guidance linking to the current premium contribution table.
- HDMF Circular No. 274 - Revised Guidelines on Pag-IBIG Fund Membership (Pag-IBIG Fund) — Pag-IBIG contribution-rate guidance for the mandatory membership savings estimate.
Frequently Asked Questions
Under the TRAIN Law schedule used here, annual taxable income up to ₱250,000 is exempt from income tax for compensation earners and many self-employed taxpayers. That is the key starting point for most salary estimates.
OSD allows taxpayers to deduct 40% of gross sales/receipts (for self-employed) or gross income (for corporations) instead of itemizing. It simplifies filing and often results in higher deductions.
The 13th month pay and other bonuses are tax-exempt up to ₱90,000 combined. Only amounts exceeding ₱90,000 are added to taxable income.
Employee SSS contribution is 5% of monthly salary credit, with the maximum contribution determined by the applicable SSS contribution table. Employers contribute their own share separately.
Annual income tax returns (BIR Form 1700/1701) are due on April 15 of the following year. Monthly withholding tax is remitted by the 10th of the following month.
Republic Act 10963 reworked the Philippine personal income tax brackets, raised the zero-tax threshold, and changed how many taxpayers estimate withholding and annual tax due. It is the law that defines the bracket structure used by this calculator.
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