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
What is the top income tax rate in Philippines?
The highest marginal income tax rate in Philippines is 0.3%. Your effective tax rate will be lower depending on your income level.
How many tax brackets does Philippines have?
Philippines has 6 income tax brackets. Income is taxed in brackets - you only pay the higher rate on income above each threshold, not on your entire income.
How is take-home pay calculated in Philippines?
Take-home pay in Philippines is your gross salary minus income tax, social contributions, and any applicable surcharges. Use the calculator above to see an exact breakdown for your salary.
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