Income Tax Calculator

Rates applicable for Tax Year 2026

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Tax Computation Results

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2026 Income Tax Brackets

₱250,000 and below

0%

₱250,001 - ₱400,000

15% of the excess over 250,000

₱400,001 - ₱800,000

22,500 + 20% of the excess over 400,000

₱800,001 - ₱2,000,000

102,500 + 25% of the excess over 800,000

₱2,000,001 - ₱8,000,000

402,500 + 30% of the excess over 2,000,000

Above ₱8,000,000

2,202,500 + 35% of the excess over 8,000,000

Important Information

Income Tax Rates (TRAIN Law)

  • ₱0 – ₱250,000: 0%
  • ₱250,001 – ₱400,000: 15% of excess over ₱250,000
  • ₱400,001 – ₱800,000: ₱22,500 + 20% of excess over ₱400,000
  • ₱800,001 – ₱2,000,000: ₱102,500 + 25% of excess over ₱800,000
  • ₱2,000,001 – ₱8,000,000: ₱402,500 + 30% of excess over ₱2,000,000
  • Over ₱8,000,000: ₱2,202,500 + 35% of excess over ₱8,000,000

Important Notes

  • Income tax is based on annual taxable income
  • Taxable income = Gross income – allowable deductions
  • Employees are subject to withholding tax deducted by employers
  • Rates apply to resident citizens under the graduated income tax system

Note: This calculator provides an estimate based on the current Philippine income tax table under the TRAIN law. For official computation and updated regulations, please refer to the Bureau of Internal Revenue (BIR) website or consult a tax professional.

Frequently Asked Questions

What is income tax?
Income tax is a tax imposed by the Philippine government on individuals and businesses earning income. It is calculated based on taxable income and follows a graduated rate system under the TRAIN law.
How is taxable income computed?
Taxable income is computed by subtracting allowable deductions (such as mandatory contributions and personal exemptions, where applicable) from your gross annual income. The resulting amount is subject to the graduated income tax rates.
What is withholding tax?
Withholding tax is the portion of income tax that employers deduct from an employee’s salary and remit directly to the BIR. It serves as an advance payment of the employee’s annual income tax liability.
Do I still need to file an income tax return (ITR)?
If you are a purely compensation income earner under substituted filing, your employer may file on your behalf. However, self-employed individuals, freelancers, and mixed-income earners are generally required to file their own income tax returns.
Are bonuses and 13th month pay taxable?
Bonuses and 13th month pay are tax-exempt up to ₱90,000 annually. Any amount exceeding ₱90,000 is subject to income tax.
Can I choose a different tax rate if I am self-employed?
Self-employed individuals and professionals may choose between the graduated income tax rates or the optional 8% flat tax on gross receipts (if eligible). The choice depends on income level and registration with the BIR.