The Philippines' TRAIN Law tax brackets run from 0% to 35% with a ₱250,000 tax-free threshold — a significant increase from the pre-reform system.
2026 TRAIN Law Tax Brackets
| Taxable Income (PHP) | Rate |
|---|---|
| 0 – 250,000 | 0% |
| 250,001 – 400,000 | 15% |
| 400,001 – 800,000 | 20% |
| 800,001 – 2,000,000 | 25% |
| 2,000,001 – 8,000,000 | 30% |
| 8,000,001+ | 35% |
These brackets come from the TRAIN (Tax Reform for Acceleration and Inclusion) Law, which significantly raised the tax-free threshold to ₱250,000 compared to the pre-reform system.
Fixed Amounts Make Manual Calculation Easier
Each bracket above the first includes a fixed base tax amount plus the marginal rate on income above that bracket's floor — for example, income of exactly ₱800,000 owes exactly ₱102,500 before any further marginal tax on income above that point.
Common Mistakes
- Applying the top bracket rate to all income. Like all progressive systems, only income within each band is taxed at that band's rate — the fixed base amounts already account for lower brackets.
- Using pre-TRAIN Law figures. The tax-free threshold and brackets changed significantly under TRAIN — older estimates online may not reflect the current structure.
Calculate your exact figure now.
🇵🇭 Philippines Tax CalculatorFrequently Asked Questions
What's the tax-free threshold in the Philippines?
₱250,000 of taxable income per year under the TRAIN Law — income at or below this level owes no income tax.
What's the top marginal tax rate?
35%, applying to taxable income above ₱8,000,000 per year.