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 the Philippines if I'm an expat working there?
The Philippines uses a progressive tax system with 6 income brackets ranging from 0% to 35%. The first PHP 250,000 of annual income is tax-free, then rates increase from 15% on income between PHP 250,000-400,000 up to 35% on income over PHP 8,000,000. As a resident employee, you'll also have Social Security System (SSS) and Philippine Health Insurance (PHIC) contributions capped at PHP 51,000 annually, which are deductible from your taxable income.
What's the take-home pay for a PHP 500,000 annual salary in the Philippines?
On a PHP 500,000 salary, the first PHP 250,000 is tax-free, and the remaining PHP 250,000 is taxed at 15%, resulting in PHP 37,500 in income tax. After deducting the maximum SSS/PHIC contribution of PHP 51,000, your taxable income is reduced, lowering your overall tax burden. Your exact take-home depends on whether you're a citizen or non-citizen, as tax treatment differs between these categories.
Do I have to pay taxes on fringe benefits in the Philippines?
Fringe benefits in the Philippines are subject to a 35% fringe benefits tax (FBT), but this is paid by your employer and not deducted from your employee salary. This means fringe benefits don't directly reduce your take-home pay, though the tax cost to your employer may affect overall compensation packages.
Are there different tax rates for non-residents working in the Philippines?
Yes, non-resident aliens have different tax treatment compared to resident citizens. The calculator uses resident citizen rates as the default, but if you're a non-citizen or non-resident, your tax obligations may differ. It's important to clarify your residency status with the Philippine Bureau of Internal Revenue, as this significantly affects your tax liability.
What social contributions do I need to pay as an employee in the Philippines?
Employees in the Philippines contribute to the Social Security System (SSS) and Philippine Health Insurance (PHIC), with a combined maximum annual contribution of PHP 51,000. These contributions are deductible from your gross income before calculating income tax, reducing your overall tax burden. The contributions are capped, so very high earners don't pay proportionally more into these programs.
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