Philippines Tax Calculator 20261. Monthly income
Regular compensation & mandatory contributions
2. Year-end annualization
Year-end tax reconciliation & adjustment
Payroll & tax summary
| Employee | Monthly Basic | Monthly Tax | Annual Gross | Annual Tax | Adjustment | Actions |
|---|---|---|---|---|---|---|
| No records yet. | ||||||
| Totals | ₱ 0.00 | ₱ 0.00 | ₱ 0.00 | ₱ 0.00 | ||
Kagawaran ng Pananalapi
Kawanihan ng Rentas Internas
CERTIFICATE OF COMPENSATION
PAYMENT / TAX WITHHELD
For Compensation Payment With or Without Tax WithheldHow withholding tax is calculated in the Philippines
Each payday the employer deducts the employee's SSS, PhilHealth and Pag-IBIG contributions from gross compensation. What's left, less any non-taxable benefits, is taxable compensation, and the BIR withholding tax table is applied to it. At year end the tax is recomputed on the full year using the annual table.
Monthly BIR withholding tax table (2023 onwards)
| Monthly taxable compensation | Withholding tax |
|---|---|
| ₱20,833 and below | ₱0 |
| ₱20,833 – ₱33,332 | 15% of excess over ₱20,833 |
| ₱33,333 – ₱66,666 | ₱1,875 + 20% of excess over ₱33,333 |
| ₱66,667 – ₱166,666 | ₱8,541.80 + 25% of excess over ₱66,667 |
| ₱166,667 – ₱666,666 | ₱33,541.80 + 30% of excess over ₱166,667 |
| ₱666,667 and above | ₱183,541.80 + 35% of excess over ₱666,667 |
Annual income tax table (for annualization)
| Annual taxable income | Income tax |
|---|---|
| ₱250,000 and below | ₱0 |
| ₱250,000 – ₱400,000 | 15% of excess over ₱250,000 |
| ₱400,000 – ₱800,000 | ₱22,500 + 20% of excess over ₱400,000 |
| ₱800,000 – ₱2,000,000 | ₱102,500 + 25% of excess over ₱800,000 |
| ₱2,000,000 – ₱8,000,000 | ₱402,500 + 30% of excess over ₱2,000,000 |
| Above ₱8,000,000 | ₱2,202,500 + 35% of excess over ₱8,000,000 |
13th month pay, bonuses and year-end annualization
13th month pay and other benefits are tax-free up to ₱90,000 a year combined. On a ₱50,000 salary, the ₱50,000 13th month pay is fully exempt and annual tax stays at ₱54,820. Add a ₱60,000 performance bonus and benefits total ₱110,000: the ₱20,000 above the cap is taxed at 20%, raising annual tax to ₱58,820. That ₱4,000 is collected in the year-end annualization, along with any other difference between tax withheld and tax due.
For a quick gross-to-net or net-to-gross figure with custom deductions, use our Philippines salary calculator.
Last updated: October 2026. Rates follow the BIR withholding table effective 1 January 2023 (TRAIN law), SSS Circular 2024-006, PhilHealth Advisory 2025-0002 and Pag-IBIG Circular 460.
Philippines withholding tax examples
These examples use the calculator’s 2026 rates for an employee with no other allowances or deductions. Enter your own figures above for an exact estimate.
Step by step: ₱50,000 monthly salary
| Basic salary + taxable allowances | ₱50,000.00 |
| SSS (5% of ₱35,000 MSC) | − ₱1,750.00 |
| PhilHealth (2.5%) | − ₱1,250.00 |
| Pag-IBIG (2%, capped) | − ₱200.00 |
| Taxable compensation | ₱46,800.00 |
| Withholding tax: ₱1,875 + 20% of ₱13,467 | − ₱4,568.40 |
| Net take-home pay | ₱42,231.60 |
Taxable compensation is ₱50,000 minus ₱3,200 in contributions. Tax is ₱1,875 plus 20% of the ₱13,467 above ₱33,333.
Take-home pay at other salaries
| Monthly salary | Contributions | Withholding tax | Net pay |
|---|---|---|---|
| ₱20,000 | ₱1,700.00 | ₱0.00 | ₱18,300.00 |
| ₱30,000 | ₱2,450.00 | ₱1,007.55 | ₱26,542.45 |
| ₱50,000 | ₱3,200.00 | ₱4,568.40 | ₱42,231.60 |
| ₱100,000 | ₱4,450.00 | ₱15,762.55 | ₱79,787.45 |
See how PeoplesHR automates Philippine payroll
Effective-dated statutory rules, payroll processing and compliant reporting in one platform.
Philippines tax calculator FAQs
How much tax is deducted from a ₱30,000 salary in the Philippines?
On a ₱30,000 monthly basic salary the employee pays ₱1,500 SSS, ₱750 PhilHealth and ₱200 Pag-IBIG, leaving ₱27,550 taxable compensation. Withholding tax is 15% of the ₱6,717 above ₱20,833, or ₱1,007.55, so take-home pay is ₱26,542.45.
Who is exempt from withholding tax?
Employees whose taxable compensation is ₱250,000 a year or less (about ₱20,833 a month) pay no income tax. Minimum wage earners are also exempt on their statutory minimum wage, holiday pay, overtime, night shift differential and hazard pay.
Is 13th month pay taxable in the Philippines?
13th month pay and other benefits, such as bonuses and productivity incentives, are tax-exempt up to ₱90,000 a year combined. Only the amount above ₱90,000 is added to taxable compensation, usually in the year-end annualization.
How is a bonus taxed?
Add the bonus to your 13th month pay and other benefits for the year. Whatever exceeds ₱90,000 is taxed at your annual marginal rate. Enter the total in the “13th Month & Bonuses” field of the year-end annualization panel to see the effect.
What is year-end annualization?
Monthly withholding is an estimate. In the last payroll of the year the employer recomputes the employee’s tax on the full year’s taxable compensation using the annual BIR table, then deducts any shortfall or refunds any excess. The result is reported on BIR Form 2316.
What is BIR Form 2316?
BIR Form 2316 is the Certificate of Compensation Payment / Tax Withheld that employers give employees each year. It shows gross compensation, non-taxable and taxable amounts, tax due and tax withheld. This calculator fills an illustrative version you can print; it is not for official filing.
Does the calculator use 2026 tax rates?
Yes. The TRAIN law withholding table that took effect on 1 January 2023 still applies in 2026. The calculator also uses the 2025 SSS schedule (15% with a ₱35,000 maximum Monthly Salary Credit), PhilHealth at 5% and Pag-IBIG with a ₱10,000 maximum fund salary.
Is my salary data stored?
No. All calculations run in your browser. Nothing you enter, including bulk CSV uploads, is sent to or stored by PeoplesHR.