Philippines Tax Calculator (2026)
Income tax rates and take-home pay for Philippines
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 earn PHP 500,000 per year?
If you earn PHP 500,000 annually, the first PHP 250,000 is tax-free, then you pay 15% on the next PHP 150,000 (PHP 22,500) and 20% on the remaining PHP 100,000 (PHP 20,000), for a total income tax of PHP 42,500. You'll also contribute PHP 51,000 to Social Security System (SSS) and Philippine Health Insurance (PHIC), which reduces your taxable income. Your actual take-home pay accounts for both taxes and these mandatory social contributions.
What is the top income tax rate in the Philippines?
The Philippines has a progressive tax system with six income tax brackets, with the highest marginal rate being 35% for income exceeding PHP 8,000,000. The tax-free threshold starts at PHP 250,000, and rates gradually increase through 15%, 20%, 25%, and 30% as your income rises.
Do I have to pay SSS and PHIC contributions, and can I deduct them?
Yes, as an employee in the Philippines, you must contribute to the Social Security System (SSS) and Philippine Health Insurance (PHIC), with a combined cap of PHP 51,000 annually. These contributions are deductible from your gross income before calculating income tax, which effectively reduces your tax burden.
Are there regional or state income taxes in the Philippines in addition to national tax?
No, the Philippines does not have subnational or regional income tax layers, so your tax liability depends only on the national income tax brackets. This means your tax rate is the same regardless of which region of the Philippines you work or live in.
What if I'm a foreigner or non-resident alien working in the Philippines?
Non-resident aliens have different tax treatment than resident citizens, though this calculator uses resident citizen rates as the default model. If you're relocating to the Philippines as a foreigner, you should consult a local tax advisor about your specific residency status and how it affects your tax obligations, as the rules can differ significantly.
Do self-employed people or freelancers in the Philippines use the same tax brackets?
No, the tax brackets shown here apply to employees receiving W-2 equivalent compensation income only. Self-employed individuals and freelancers are subject to different rules, including VAT and business taxes, which are not covered in this employee-focused calculator.
Compare Philippines with other countries
Other tax calculators
Compare Philippines with another country
See side-by-side tax breakdowns for any two countries