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 can I earn tax-free in Philippines?
The first PHP 250,000 of annual income is completely tax-free in Philippines. Once you earn above that threshold, you'll start paying income tax on the amount exceeding PHP 250,000, with rates ranging from 15% to 35% depending on your total income bracket.
What are the income tax brackets in Philippines?
Philippines has 6 income tax brackets. After the PHP 250,000 tax-free threshold, rates are 15% (PHP 250k-400k), 20% (PHP 400k-800k), 25% (PHP 800k-2M), 30% (PHP 2M-8M), and 35% (above PHP 8M). The tax is calculated progressively, so only income in each bracket is taxed at that rate.
Do I have to pay social security contributions if I work in Philippines?
Yes, you'll contribute to the Social Security System (SSS) and Philippine Health Insurance (PHIC) as an employee. These contributions are capped at PHP 51,000 annually and are deductible from your taxable income, which effectively reduces your income tax burden.
As an expat, will my tax situation be different?
Non-resident aliens have different tax treatment than resident citizens in Philippines. This calculator uses resident citizen rates as the standard; if you're a non-citizen or newly arrived, you should verify your specific status with the Bureau of Internal Revenue, as it affects both income tax rates and social contribution requirements.
Are fringe benefits taxed in Philippines?
Yes, fringe benefits are subject to a 35% fringe benefits tax (FBT), but this is typically paid by your employer and not deducted from your salary. It's important to understand whether your employment package includes fringe benefits, as they have tax implications separate from your regular income tax.
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