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 or remote worker?
Philippines has a progressive tax system with 6 income tax brackets ranging from 0% to 35%. If you earn PHP 250,000 or less annually, you pay no income tax. Above that threshold, you'll pay 15% on income between PHP 250,000-400,000, increasing to 35% on income above PHP 8,000,000. As a resident citizen employee, you'll also benefit from a PHP 51,000 annual deduction for Social Security System (SSS) and Philippine Health Insurance (PHIC) contributions.
What are social contributions in Philippines and how much do I pay?
Employee social contributions consist of SSS and PHIC payments, which are capped at PHP 51,000 annually for non-citizen employees. These contributions are deductible from your gross income before calculating income tax, effectively reducing your taxable income. Citizen employees may have slightly different rates, but they're similarly capped.
Is there a tax-free income threshold in Philippines?
Yes, the first PHP 250,000 of annual income is completely tax-free. This is the lowest bracket in the progressive tax system, meaning if you earn PHP 250,000 or less per year, you owe no income tax at all. This threshold applies to resident citizen employees receiving compensation income.
Do I need to pay different taxes in different regions of Philippines?
No, Philippines does not have a material subnational income tax layer. Income tax is calculated at the national level only, so your tax rate is the same regardless of which region or city you live or work in. This simplifies tax planning compared to countries with state or provincial income taxes.
What types of income does this tax calculator cover?
The Philippines tax calculator covers compensation income for W-2 equivalent employee arrangements, such as salary and wages for resident citizens. It does not cover business income, self-employment, freelance work, or special final tax regimes, which have different tax treatment and are taxed separately.
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