Philippines Tax Calculator (2026)
Income tax rates and take-home pay for Philippines
Philippines Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Exempt | ₱0 - ₱250,000 | 0.0% |
| Lower Middle Class | ₱250,000 - ₱400,000 | 15.0% |
| Middle Class | ₱400,000 - ₱800,000 | 20.0% |
| Upper Middle Class | ₱800,000 - ₱2,000,000 | 25.0% |
| High Income | ₱2,000,000 - ₱8,000,000 | 30.0% |
| Top Rate | ₱8,000,000+ | 35.0% |
Social Security System (SSS)
| Bracket | Income Range | Rate |
|---|---|---|
| Employee SSS Contribution | ₱0+ | 4.5% |
Capped at ₱16,200 per year
Philippine Health Insurance Corporation (PHIC)
| Bracket | Income Range | Rate |
|---|---|---|
| PhilHealth Employee Share | ₱0+ | 2.5% |
Capped at ₱30,000 per year
Home Development Mutual Fund (Pag-IBIG)
| Bracket | Income Range | Rate |
|---|---|---|
| HDMF Employee Contribution | ₱0+ | 2.0% |
Capped at ₱4,800 per year
Key Facts
Tax Year
2025
Currency
PHP
Top Rate
35.0%
Brackets
6 brackets
Tax-Free Threshold
₱250,000
Social Contributions
3 items
Assumptions
- · Tax brackets are based on the TRAIN law (2023 onwards) as provided in the source.
- · Social contributions (SSS, PhilHealth, Pag-IBIG) are modeled using 2025 statutory caps and rates totaling PHP 51,000 annually as noted in the source.
- · 13th-month pay exemption (up to PHP 90,000) and other de minimis benefits are not included in the calculation as they vary by individual and employer.
- · Personal exemptions were repealed by the TRAIN law; the primary relief is the PHP 250,000 zero-rate bracket.
Frequently asked questions
How much income tax will I pay on my salary in the Philippines?
The Philippines uses a progressive tax system with six income brackets ranging from 0% to 35%. The first PHP 250,000 of your annual income is completely tax-free, then rates increase from 15% to 35% as your income grows. For example, if you earn PHP 500,000 annually, you would pay no tax on the first PHP 250,000, then 15% on PHP 150,000 and 20% on PHP 100,000.
What are social contributions and how much will they deduct from my paycheck?
Social contributions in the Philippines include three mandatory employee deductions: SSS (Social Security System) at 4.5% up to PHP 16,200 annually, PhilHealth (health insurance) at 2.5% up to PHP 30,000 annually, and Pag-IBIG (home development fund) at 2% up to PHP 4,800 annually. These contributions are deductible from your taxable income and total approximately PHP 51,000 per year at the statutory caps.
Do I get a personal exemption or deduction in the Philippines?
Personal exemptions were eliminated under the TRAIN law, so there is no personal exemption deduction available. However, the primary tax relief is the PHP 250,000 zero-rate bracket, which means the first PHP 250,000 of your income is completely exempt from tax.
Are there any other tax breaks I should know about when working in the Philippines?
The Philippines offers specific exemptions such as the 13th-month pay exemption (up to PHP 90,000) and certain de minimis benefits that are not included in taxable income. However, these benefits vary by individual circumstances and employer policies, so you should verify your eligibility with your employer or a local tax advisor.
Will I pay different tax rates depending on which region of the Philippines I work in?
No, the Philippine income tax system is nationwide with no regional or subnational tax variations. All residents and employees in the Philippines are subject to the same national tax brackets and rates regardless of which region they work or live in.
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