How to use Philippines Income Tax Calculator
This Philippines income tax calculator estimates your BIR income tax under the TRAIN law plus your SSS and PhilHealth contributions, based on your annual income and the year you select (2023, 2024, 2025 or 2026). The Philippines has used the lower TRAIN "2023 onward" graduated schedule since 1 January 2023, so all four years share the same income tax brackets — the first ₱250,000 is tax-free, then rates rise from 15% to 35%. The calculator shows your effective rate, marginal rate, a bracket-by-bracket breakdown and your estimated take-home pay.
- Select your tax year (2023, 2024, 2025, or 2026) from the dropdown.
- Enter your annual gross income (compensation before tax).
- Keep the filing status as Individual — the Philippines taxes individuals.
- Click Calculate to see your income tax, SSS, PhilHealth, effective rate and marginal rate.
- Review the bracket-by-bracket breakdown and your estimated take-home pay.
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How the TRAIN graduated rates work
The Philippines taxes compensation on a graduated schedule where each band applies only to the income within its range. The first ₱250,000 is completely tax-free. For example, on ₱500,000 you pay nothing on the first ₱250,000, 15% on the next ₱150,000 (₱22,500), and 20% on the remaining ₱100,000 (₱20,000), totalling ₱42,500 — an effective rate of 8.5%, well below the 20% marginal rate.
| Annual Taxable Income | Tax Rate | Tax on this bracket |
|---|---|---|
| ₱0 – ₱250,000 | 0% | Nil (tax-free) |
| ₱250,001 – ₱400,000 | 15% | 15% of the excess over ₱250,000 |
| ₱400,001 – ₱800,000 | 20% | ₱22,500 + 20% over ₱400,000 |
| ₱800,001 – ₱2,000,000 | 25% | ₱102,500 + 25% over ₱800,000 |
| ₱2,000,001 – ₱8,000,000 | 30% | ₱402,500 + 30% over ₱2,000,000 |
| Over ₱8,000,000 | 35% | ₱2,202,500 + 35% over ₱8,000,000 |
SSS, PhilHealth and Pag-IBIG contributions
On top of income tax, employees pay mandatory contributions. SSS (Social Security System) is withheld at the employee share — 4.5% in 2023–2024, rising to 5% in 2025 — up to the maximum Monthly Salary Credit ceiling. PhilHealth (national health insurance) takes the employee half of the premium rate, 2.5% in 2024–2025, capped at ₱100,000 of monthly income. Pag-IBIG (the housing fund) is a small flat amount of about ₱200/month and is not modelled here. This calculator subtracts SSS and PhilHealth in your take-home figure.
Effective versus marginal tax rate
Your effective tax rate is your total tax divided by total income — your true average. Your marginal tax rate is the rate on your next peso, set by the highest bracket you reach. On ₱1,000,000 your marginal rate is 25%, but because the first ₱250,000 is tax-free and the lower bands are taxed at 15% and 20%, your effective income-tax rate is only about 15.25%. Understanding the difference helps with decisions about overtime, bonuses and the 13th-month pay.
No local income tax in the Philippines
Personal income tax in the Philippines is national only, administered by the Bureau of Internal Revenue (BIR). Cities and provinces do not levy a personal income tax on salaries, so your BIR income tax plus SSS and PhilHealth is the full picture for an employee — there is no extra local layer, which is why this calculator has no region selector.
Worked examples
Individual, ₱400K income, 2025
Inputs: ₱400,000 income
Result: ~₱22,500 income tax · 5.6% effective · 15% marginal
Individual, ₱500K income, 2025
Inputs: ₱500,000 income
Result: ~₱42,500 income tax · 8.5% effective · 20% marginal
Individual, ₱1M income, 2025
Inputs: ₱1,000,000 income
Result: ~₱152,500 income tax · 15.25% effective · 25% marginal
Glossary
- TRAIN law
- The Tax Reform for Acceleration and Inclusion (RA 10963), which set the current graduated income tax rates.
- Tax-free threshold
- The first ₱250,000 of annual taxable income, which is exempt from income tax.
- BIR
- The Bureau of Internal Revenue — the national authority that administers income tax.
- SSS
- The Social Security System — a mandatory employee social-security contribution capped at the Monthly Salary Credit ceiling.
- PhilHealth
- The national health insurance program, funded by a premium split between employer and employee.
- Pag-IBIG (HDMF)
- The Home Development Mutual Fund — a small mandatory housing-fund contribution of about ₱200/month.
- Effective tax rate
- Total tax owed divided by total income — your true average tax rate.
- Marginal tax rate
- The tax rate applied to your next peso of income, set by the highest bracket you reach.
Related reading
Frequently Asked Questions
Why use Philippines Income Tax Calculator?
- Uses the TRAIN law "2023 onward" graduated rates, where the first ₱250,000 is tax-free
- Estimates your SSS and PhilHealth employee contributions for each year
- Reflects the 2025 SSS rate rise (5% employee share) and the 5% PhilHealth premium
- See your effective rate (actual tax ÷ income) and marginal rate (rate on your last peso)
- Full bracket breakdown shows how each band from 15% to 35% is taxed
Common use cases
- Estimate your BIR income tax before filing your annual ITR
- Check how SSS and PhilHealth deductions reduce your monthly take-home pay
- Compare your take-home pay across the 2023, 2024 and 2025 contribution rates
- Understand your marginal versus effective tax rate for a raise or 13th-month pay
- See how the ₱250,000 tax-free threshold keeps low earners exempt
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