Philippine Income Tax Calculator (BIR)

Calculate your withholding and annual income tax based on the updated 2026 TRAIN Law brackets.

Income Details

Tax Type

Graduated (Employees)

8% Flat Rate (Freelance/Self-Employed)

Input Period

Taxable Income (PHP)Income after deducting mandatory contributions (SSS, PhilHealth, Pag-IBIG).

Tax Breakdown

Annual Taxable Income₱400,000.00

Applicable Tax Bracket15% over ₱250k

Monthly Income Tax₱1,875.00

Total Annual Tax Payable₱22,500.00

Net Income After Tax

Monthly Net Income₱31,458.33

Annual Net Income₱377,500.00

How Philippine Income Tax is Calculated (2026)

In the Philippines, income tax for regular employees is governed by the TRAIN Law (Republic Act No. 10963). The most recent tax brackets went into effect in January 2023 and continue to apply through 2026.

The ₱250,000 Tax Exemption

Every Filipino is entitled to an annual tax exemption of ₱250,000. If your taxable income (gross income minus mandatory deductions like SSS, PhilHealth, and Pag-IBIG) is ₱20,833 per month or less, you do not have to pay any income tax.

8% Flat Rate for Freelancers and Self-Employed

If you are a freelancer, professional, or self-employed individual whose gross annual sales do not exceed the VAT threshold of ₱3,000,000, you have the option to avail of the 8% flat income tax rate. This 8% is applied to your gross receipts in excess of the ₱250,000 exemption, in lieu of the graduated tax rates and percentage tax.