Philippines Income Tax Calculator

Estimate Philippine income taxes, payroll deductions, contributions, business liabilities, refunds, and take-home pay using flexible modes, transparent formulas, and detailed year-based calculations for everyone.

Calculator setup

%
%

Compensation income

Enter recurring salary per selected basis. Enter supplemental amounts as annual or year-to-date totals matching your chosen projection.

Use 12 for a full monthly-paid year.

Government contributions and permitted deductions

De minimis benefits tracker

The calculator limits each category using its configured ceiling. Any entered excess becomes taxable compensation.

Self-employment and professional income

Used only for automatic self-paying contribution estimates.
%

Payroll, quarterly, and target settings

Live gross preview: Enter salary details.
This preview shows gross basic salary only. Submit for tax, benefits, credits, and contribution calculations.
View formulas

Browser calculation history

Only compact summaries are stored in this browser. The calculator does not request names, TINs, addresses, or contact details.

No saved calculations yet.

Formula used

Taxable compensation = taxable earnings + taxable benefit excess − compulsory employee contributions − permitted deductions

Graduated tax = bracket base tax + bracket rate × income exceeding the bracket threshold

Pure self-employed 8% tax = 8% × max(0, qualifying gross income − ₱250,000)

Mixed-income 8% tax = graduated compensation tax + 8% × qualifying business gross income

Net payable = annual income tax − withholding taxes − quarterly payments − allowable credits

The calculator applies the selected annual graduated schedule. It separately tests business income under graduated and eight-percent methods. Employee contributions reduce taxable compensation only when entered or automatically calculated.

The payroll result divides projected annual tax across the selected frequency. Actual withholding can differ because payroll systems annualize cumulative compensation. Final reconciliation should use official certificates and filed returns.

How to use this calculator

  1. Select the taxpayer type and required calculation mode.
  2. Choose the tax-year schedule matching the taxable period.
  3. Enter recurring salary using one consistent salary basis.
  4. Add annual benefits, allowances, deductions, and prior withholding.
  5. Complete business income fields when self-employed or mixed-income.
  6. Review contribution settings and replace estimates when necessary.
  7. Submit the form and inspect every result breakdown.
  8. Compare tax methods before choosing a filing position.
  9. Export the summary and verify it against official records.

Understanding Philippine graduated income tax

Graduated tax uses increasing marginal rates. Only income inside each applicable tier receives that tier’s rate. The calculator reports the bracket, base amount, excess, and marginal percentage.

Annual taxable income from 2023 onwardTax formula
₱250,000 or belowNo income tax
Over ₱250,000 to ₱400,00015% of excess over ₱250,000
Over ₱400,000 to ₱800,000₱22,500 plus 20% of excess over ₱400,000
Over ₱800,000 to ₱2,000,000₱102,500 plus 25% of excess over ₱800,000
Over ₱2,000,000 to ₱8,000,000₱402,500 plus 30% of excess over ₱2,000,000
Over ₱8,000,000₱2,202,500 plus 35% of excess over ₱8,000,000

Eight-percent option and business deductions

Qualified non-VAT self-employed individuals may elect the eight-percent option. The election generally applies for one taxable year. The calculator warns when entered receipts exceed the configured VAT threshold.

Purely self-employed taxpayers receive the configured ₱250,000 reduction. Mixed-income earners do not receive that second reduction. Their compensation income already receives the graduated schedule’s zero-rate tier.

Graduated business taxation can use itemized deductions or the Optional Standard Deduction. The comparison table estimates both approaches. Eligibility and documentation must still be reviewed independently.

Taxable and non-taxable compensation

Basic pay, commissions, taxable allowances, and benefit excesses can enter taxable compensation. Compulsory employee contributions and qualifying union dues may reduce the taxable amount. Previous employer data supports annualized reconciliation.

The calculator tracks the ₱90,000 combined ceiling for thirteenth-month pay and other benefits. It also tests selected de minimis categories against dated configured limits. Amounts beyond those limits become taxable estimates.

Minimum wage mode removes configured statutory minimum wage items from taxable compensation. Other unrelated earnings can remain taxable. Regional wage compliance must be checked using current labor rules.

Government contribution estimates

Automatic SSS uses the January 2025 employee schedule logic. It rounds monthly compensation to the configured salary credit. Self-paying SSS estimates use the configured total member rate.

PhilHealth uses a five-percent total premium with configured salary limits. Employee mode assigns half to the worker. Self-paying mode assigns the full premium to the member.

Pag-IBIG uses a configurable employee rate and maximum fund salary. Manual overrides remain available for every program. Use payroll records whenever they differ from estimates.

Worked examples

ScenarioKey entriesExpected calculator behavior
Monthly employee₱50,000 monthly salary, twelve monthsAnnualizes salary, deducts contributions, then applies graduated rates.
Pure self-employed using 8%₱1,200,000 receipts, timely electionUses eight percent after the configured ₱250,000 reduction.
Mixed-income using 8%Compensation plus ₱600,000 business receiptsTaxes compensation separately and applies eight percent without another reduction.
Annual reconciliationTax due plus withholding and quarterly creditsShows remaining payable or estimated overpayment.

Frequently asked questions

Is this an official BIR calculator?

No. It is an educational estimator using configurable rules. Verify results with official BIR forms, issuances, and professional advice.

Does it calculate monthly withholding?

Yes. It divides annual projected tax across the chosen payroll frequency. Actual annualized payroll withholding may differ.

Can multiple employers be included?

Yes. Enter previous employer taxable compensation and withholding. Those figures support annual reconciliation.

Does the calculator support minimum wage earners?

Yes. Minimum wage mode exempts selected statutory wage components. Other taxable income remains separately calculated.

Can professionals use the 8% option?

Qualified non-VAT professionals may compare that method. Election timing and other eligibility rules still matter.

Why is the ₱250,000 reduction missing for mixed income?

Mixed-income taxpayers already receive the zero-rate tier through compensation taxation. The business eight-percent base uses gross qualifying income.

Are SSS, PhilHealth, and Pag-IBIG always deductible?

Compulsory employee contributions generally reduce taxable compensation. Employer shares do not reduce the employee’s taxable income here.

Does OSD equal actual cash expenses?

No. OSD is a tax deduction method. Take-home estimates use entered actual business expenses for cash-flow purposes.

Can the calculator estimate a refund?

Yes. Credits exceeding estimated annual tax appear as overpayment. Refund availability depends on filing facts and supporting documents.

Are de minimis benefits fully exempt?

Only qualifying amounts within applicable category limits are exempt. Entered excess appears as taxable compensation.

How should future rate changes be handled?

Update the dated PHP configuration arrays. Review official sources before changing thresholds, rates, or effective dates.

Official references and configuration notes

Configuration review date: July 19, 2026. The latest publicly located official schedules were used where available. Contribution rules, tax thresholds, and BIR interpretations can change.

Accuracy and tax-advice disclaimer

This calculator provides estimates from user-entered information. It does not determine legal residence, treaty eligibility, filing obligations, substantiation, or audit outcomes. Official tax returns may use different rounding and presentation rules.

Never submit sensitive personal identifiers through a public calculator. Keep payroll certificates and tax returns secure. Consult a qualified Philippine tax professional for filing decisions.

Related Calculators



Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.