Philippines Income Tax Calculator

How to estimate Philippines take-home pay under TRAIN Law

Compensation income for employees in the Philippines is taxed progressively under the Tax Reform for Acceleration and Inclusion (TRAIN) Law enforced by the Bureau of Internal Revenue (BIR). This calculator estimates monthly net pay after SSS, PhilHealth, Pag-IBIG, and BIR withholding tax using rates effective 2023-onward. All math runs in your browser.

Enter your gross salary, pay frequency, and which statutory contributions to include. Results update instantly with a monthly breakdown and chart showing take-home pay versus tax and deductions. For other country comparisons, try the Australia income tax calculator or the Pakistan income tax calculator.

BIR TRAIN Law income tax brackets

Under Republic Act No. 10963, individual compensation income is taxed on annual taxable income using these graduated rates effective January 1, 2023 and onwards:

• Up to PHP 250,000: 0% (tax-exempt)
• PHP 250,001 to 400,000: 15% of the excess over PHP 250,000
• PHP 400,001 to 800,000: PHP 22,500 plus 20% of the excess over PHP 400,000
• PHP 800,001 to 2,000,000: PHP 102,500 plus 25% of the excess over PHP 800,000
• PHP 2,000,001 to 8,000,000: PHP 402,500 plus 30% of the excess over PHP 2,000,000
• Above PHP 8,000,000: PHP 2,202,500 plus 35% of the excess over PHP 8,000,000

The PHP 250,000 annual exemption means many entry-level and mid-level salaried workers pay no income tax on their compensation after mandatory contributions are deducted.

How taxable income is computed

Before BIR withholding tax is applied, mandatory employee contributions are subtracted from gross compensation to arrive at annual taxable income:

Annual income tax is then computed from the TRAIN Law bracket schedule and divided by 12 for a monthly withholding estimate.

Mandatory statutory contributions

Salaried employees in the Philippines typically contribute to three government programs before income tax is calculated:

• SSS (Social Security System): Employee share of approximately 4.5% of monthly salary credit, with salary credit floored at PHP 4,000 and capped at PHP 30,000.
• PhilHealth: Employee share of 2.5% of monthly basic salary (half of the 5% total premium), with salary floored at PHP 10,000 and capped at PHP 100,000 under the Universal Health Care Act.
• Pag-IBIG (HDMF): Employee share of 2% of monthly compensation, capped at PHP 200 per month.

These employee contributions are excluded from gross compensation when computing taxable income for withholding purposes.

Worked example: PHP 45,000 monthly salary

For a monthly gross salary of PHP 45,000 with all three contributions enabled:

1. SSS: 4.5% of PHP 30,000 salary credit (capped) = PHP 1,350 per month
2. PhilHealth: 2.5% of PHP 45,000 = PHP 1,125 per month
3. Pag-IBIG: min(2% of PHP 45,000, PHP 200) = PHP 200 per month
4. Annual taxable income: PHP 540,000 minus PHP 32,100 contributions = PHP 507,900
5. Annual income tax: PHP 22,500 + 20% of (PHP 507,900 - PHP 400,000) = PHP 44,080
6. Monthly net take-home: PHP 45,000 - PHP 2,675 contributions - PHP 3,673.33 tax = PHP 38,651.67

Frequently asked questions