# Income Tax Calculator Philippines

URL: https://speedycalculator.com/calculators/finance/income-tax-philippines/
Last updated: 2026-10-25

> The Philippines income tax calculator works out mandatory contributions (SSS, PhilHealth, Pag-IBIG), taxable income, withholding tax under the TRAIN law and net monthly pay for employees and the self-employed.

## Inputs

- Employment status
- Monthly income (₱)

## Results

- SSS contribution
- PhilHealth contribution
- Pag-IBIG contribution
- Total contributions
- Taxable income (monthly)
- Withholding tax (monthly)
- Net pay after deductions
- Total deductions

## Formula

```
SSS employee share 5% of monthly salary credit (₱5,000–₱35,000); self-employed 15%
PhilHealth 5% of salary (₱10,000–₱100,000), shared equally by employee and employer
Pag-IBIG 2% of up to ₱10,000 (₱200)
Tax (annual taxable income): 0% up to ₱250,000; 15% to ₱400,000; ₱22,500 + 20% to ₱800,000; ₱102,500 + 25% to ₱2M; ₱402,500 + 30% to ₱8M; ₱2,202,500 + 35%
```

## Explanation

Since 2023 the TRAIN law's lower tax schedule applies: annual income up to ₱250,000 is tax-free. Mandatory contributions are deducted before tax. Thirteenth-month pay and other benefits up to ₱90,000 are tax-exempt and not included here.

### How to use the Income Tax Calculator Philippines

- **Employment status**
- **Monthly income (₱)**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Choose your employment status and enter your gross monthly income.

### Tips

- Tax figures here are estimates for planning – your actual tax depends on credits, deductions and local rules.
- Check the tax year and filing status before you rely on a result.
- Use gross (before-tax) figures unless a field asks for take-home pay.
- When in doubt, confirm with the tax authority's own calculator or a tax professional.

### Common mistakes to avoid

- Confusing marginal and effective tax rates.
- Adding sales tax to a price that already includes it.
- Forgetting payroll taxes (Social Security and Medicare) on wages.

### Inputs explained

FieldWhat to enterEmployment statusChoose one: Employed by a company, Self-employed / voluntaryMonthly income (₱)Amount in ₱

### What each result means

- **Pag-IBIG contribution** = 0.02×min([Monthly income (₱)], 10000)
- **Total contributions** = [SSS contribution] + [PhilHealth contribution] + [Pag-IBIG contribution]
- **Taxable income (monthly)** = max([Monthly income (₱)] - [Total contributions], 0)
- **Withholding tax (monthly)** = ptax([Taxable income (monthly)]×12, 0, 250000, 0.15, 400000, 0.20, 800000, 0.25, 2000000, 0.30, 8000000, 0.35)÷12
- **Net pay after deductions** = [Monthly income (₱)] - [Total contributions] - [Withholding tax (monthly)]
- **Total deductions** = [Total contributions] + [Withholding tax (monthly)]

### Example values

How the main result changes when **Monthly income** changes and everything else stays at the example values above:

Monthly income (₱)Net pay after deductions20,00018,30030,00026,542.540,00034,431.6750,00042,231.6760,00050,031.6780,00065,162.5

## Worked example

Inputs — Employment status: Employed by a company; Monthly income (₱): ₱40,000.

Results — SSS contribution = ₱1,750.00; PhilHealth contribution = ₱1,000.00; Pag-IBIG contribution = ₱200.00; Total contributions = ₱2,950.00; Taxable income (monthly) = ₱37,050.00; Withholding tax (monthly) = ₱2,618.33; **Net pay after deductions = ₱34,431.67**; Total deductions = ₱5,568.33.

## FAQ

**How much is tax-free in the Philippines?**
Annual taxable income up to ₱250,000.

**What are the mandatory contributions?**
SSS, PhilHealth and Pag-IBIG.

**Is the 13th-month pay taxed?**
Benefits up to ₱90,000 a year are exempt.

**What formula does the Income Tax Calculator Philippines use?**
SSS employee share 5% of monthly salary credit (₱5,000–₱35,000); self-employed 15%.


## Sources

- [Bureau of Internal Revenue – Tax tables (TRAIN law)](https://www.bir.gov.ph/)