Philippines Income Tax Calculator
Estimate your 2026 Philippine income tax under the TRAIN Law using current BIR brackets.
What this calculator does
Estimates your Philippine income tax liability under the TRAIN Law's graduated tax table, showing exactly how much of your income falls into each bracket.
Who this is for
Filipino employees estimating their annual tax bill, self-employed individuals comparing the graduated table against the 8% flat-rate option, or anyone checking a job offer's real take-home value.
How this calculator works
The Philippines has used the same TRAIN Law (Republic Act 10963) income tax schedule since January 2023, with no changes since. Annual taxable income up to ₱250,000 is completely tax-exempt, with progressive rates from 15% to 35% above that. Taxable income is your gross compensation minus mandatory contributions (SSS, PhilHealth, Pag-IBIG) and any non-taxable allowances.
Worked example
₱600,000 taxable income falls in the ₱400,000–₱800,000 bracket: base tax of ₱22,500 plus 20% of the amount over ₱400,000. That's ₱22,500 + (20% × ₱200,000) = ₱22,500 + ₱40,000 = ₱62,500 total tax, an effective rate of about 10.4% on the full ₱600,000 — well below the 20% bracket rate, since only the income within that bracket is taxed at 20%.
Where your income goes
Run the calculator above to see the tax vs. take-home split.
2026 tax bracket breakdown
Run the calculator above to see your income split across brackets.
Common mistakes
- Applying the bracket rate to your whole income. Someone in the 25% bracket doesn't pay 25% of their whole income — only the portion of income that actually falls within that bracket is taxed at that rate.
- Forgetting mandatory contributions reduce taxable income. SSS, PhilHealth, and Pag-IBIG are deducted before income tax brackets apply, so taxable income is lower than gross salary.
- Missing the 8% flat-rate option. Self-employed individuals and professionals with gross sales under ₱3,000,000 can often save money by choosing the simpler 8% flat rate instead of graduated brackets plus percentage tax.
- Not comparing both options if self-employed. The 8% flat rate isn't always better — at lower income levels, the graduated table's 0% band on the first ₱250,000 can sometimes produce a lower total tax than a flat 8% on all gross sales.
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Frequently Asked Questions
Should self-employed individuals use the graduated table or the 8% flat rate?
It depends on income level and expenses. The 8% flat rate on gross sales is simpler and often better for higher earners with few deductible expenses, while the graduated table (with its tax-free first ₱250,000) can work out cheaper at lower income levels or for those with significant deductible business expenses.
Is the first ₱250,000 really tax-free?
Yes, under the TRAIN Law, annual taxable income up to ₱250,000 is completely exempt from income tax.
Does this include SSS, PhilHealth, and Pag-IBIG?
No, this calculates income tax only. Mandatory contributions to SSS, PhilHealth, and Pag-IBIG are separate deductions calculated on their own schedules.
Can self-employed people use a different tax option?
Yes, self-employed individuals and professionals with gross sales under ₱3,000,000 can opt for a flat 8% tax on gross sales instead of the graduated brackets shown here.