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.
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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.
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 onward | Tax formula |
|---|---|
| ₱250,000 or below | No income tax |
| Over ₱250,000 to ₱400,000 | 15% 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 |
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.
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.
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.
| Scenario | Key entries | Expected calculator behavior |
|---|---|---|
| Monthly employee | ₱50,000 monthly salary, twelve months | Annualizes salary, deducts contributions, then applies graduated rates. |
| Pure self-employed using 8% | ₱1,200,000 receipts, timely election | Uses eight percent after the configured ₱250,000 reduction. |
| Mixed-income using 8% | Compensation plus ₱600,000 business receipts | Taxes compensation separately and applies eight percent without another reduction. |
| Annual reconciliation | Tax due plus withholding and quarterly credits | Shows remaining payable or estimated overpayment. |
No. It is an educational estimator using configurable rules. Verify results with official BIR forms, issuances, and professional advice.
Yes. It divides annual projected tax across the chosen payroll frequency. Actual annualized payroll withholding may differ.
Yes. Enter previous employer taxable compensation and withholding. Those figures support annual reconciliation.
Yes. Minimum wage mode exempts selected statutory wage components. Other taxable income remains separately calculated.
Qualified non-VAT professionals may compare that method. Election timing and other eligibility rules still matter.
Mixed-income taxpayers already receive the zero-rate tier through compensation taxation. The business eight-percent base uses gross qualifying income.
Compulsory employee contributions generally reduce taxable compensation. Employer shares do not reduce the employee’s taxable income here.
No. OSD is a tax deduction method. Take-home estimates use entered actual business expenses for cash-flow purposes.
Yes. Credits exceeding estimated annual tax appear as overpayment. Refund availability depends on filing facts and supporting documents.
Only qualifying amounts within applicable category limits are exempt. Entered excess appears as taxable compensation.
Update the dated PHP configuration arrays. Review official sources before changing thresholds, rates, or effective dates.
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.
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.
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.