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
| Field | What to enter |
|---|---|
| Employment status | Choose one: Employed by a company, Self-employed / voluntary |
| Monthly 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 deductions |
|---|---|
| 20,000 | 18,300 |
| 30,000 | 26,542.5 |
| 40,000 | 34,431.67 |
| 50,000 | 42,231.67 |
| 60,000 | 50,031.67 |
| 80,000 | 65,162.5 |
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 employerPag-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%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.
Frequently asked questions
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%.