Philippines Tax Calculator (2026)
Income tax rates and take-home pay for Philippines
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Philippines Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Tax-free threshold | ₱0 - ₱250,000 | 0.0% |
| 15% bracket | ₱250,000 - ₱400,000 | 15.0% |
| 20% bracket | ₱400,000 - ₱800,000 | 20.0% |
| 25% bracket | ₱800,000 - ₱2,000,000 | 25.0% |
| 30% bracket | ₱2,000,000 - ₱8,000,000 | 30.0% |
| 35% bracket | ₱8,000,000+ | 35.0% |
Social Security System (SSS) and Philippine Health Insurance (PHIC)
| Bracket | Income Range | Rate |
|---|---|---|
| SSS/PHIC capped contribution | ₱0+ | 0.0% |
Capped at ₱51,000 per year
Key Facts
Tax Year
2025
Currency
PHP
Top Rate
35.0%
Brackets
6 brackets
Tax-Free Threshold
₱250,000
Social Contributions
1 item
Assumptions
- · Model applies to resident citizen employees receiving compensation income only.
- · Fringe benefits tax (FBT) of 35% is employer-paid and not included in employee net salary calculation.
- · Social Security System (SSS) and Philippine Health Insurance (PHIC) contributions capped at PHP 51,000 annually for non-citizen employees; citizen rates vary but are similarly capped.
- · Non-resident aliens have different tax treatment; this model uses resident citizen rates as the representative default.
- · Business income, self-employment, and final tax regimes are excluded; model focuses on W-2 equivalent compensation income.
- · No personal deductions allowed for aliens receiving only salary; social contributions are excluded from gross income.
- · Assumes no optional standard deduction or itemized business deductions apply to W-2 compensation.
- · No material subnational income tax layer in Philippines; national tax only.
- · VAT and business taxes apply to self-employed only, not included in employee model.
Frequently asked questions
How much income tax do I pay in Philippines if I'm an expat working remotely?
If you're a resident employee earning compensation income, you won't pay any tax on your first PHP 250,000 annually. Above that threshold, the Philippines uses a progressive tax system with rates ranging from 15% to 35% depending on your income bracket, with the top rate of 35% applying to income over PHP 8,000,000. However, your taxable income is reduced by social contributions (SSS and PHIC), which are capped at PHP 51,000 annually.
What are the income tax brackets in Philippines?
Philippines has six income tax brackets for resident citizen employees. Income from PHP 0 to PHP 250,000 is tax-free, then rates increase progressively: 15% (PHP 250,000-400,000), 20% (PHP 400,000-800,000), 25% (PHP 800,000-2,000,000), 30% (PHP 2,000,000-8,000,000), and 35% (above PHP 8,000,000). Each bracket applies only to income within that range, so higher earners pay the combined tax across all applicable brackets.
Do I have to pay social security contributions in Philippines?
Yes, employee social contributions through the Social Security System (SSS) and Philippine Health Insurance (PHIC) are mandatory and capped at PHP 51,000 annually. These contributions are deductible from your gross income before calculating income tax, which effectively reduces your taxable income. For non-citizen employees, the contribution cap is also PHP 51,000, though citizen contribution rates may vary.
Are there state or provincial income taxes in Philippines?
No, Philippines does not have subnational or regional income taxes. The national income tax system applies uniformly across the country regardless of which region you work or reside in, so your tax rate depends only on your gross compensation income and not on your location.
What's not included in this tax calculator for Philippines?
This calculator covers resident citizen employees receiving only compensation income. It does not apply to business owners, self-employed individuals, non-resident aliens, or those with final tax regimes, as these have different tax treatment. Fringe benefits tax (FBT) of 35% is employer-paid and not included in your net salary calculation.
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