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 - ₱250,0000.0%
15% bracket₱250,000 - ₱400,00015.0%
20% bracket₱400,000 - ₱800,00020.0%
25% bracket₱800,000 - ₱2,000,00025.0%
30% bracket₱2,000,000 - ₱8,000,00030.0%
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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