Income Tax Philippines Calculator
Calculate Philippine income tax under the TRAIN Law. Includes graduated income tax rates, personal exemptions, and withholding tax calculations for employees and self-employed individuals.
Tax Summary
Gross Income:
?0
Taxable Income:
?0
Income Tax:
?0
Net Income:
?0
Take-Home %:
0%
Tax Breakdown
Marginal Rate:
0%
Effective Rate:
0%
Tax Bracket:
?0 - ?0
Withholding Information
Monthly Withholding:
?0
Annual Withholding:
?0
Under/Over Withheld:
?0
Understanding Philippine Income Tax
The Philippines uses a progressive income tax system under the TRAIN Law (Tax Reform for Acceleration and Inclusion). The system includes graduated tax rates, personal exemptions, and mandatory withholding for employees.
TRAIN Law Tax Brackets (2024)
| Taxable Income Range | Tax Rate | Tax Due |
|---|---|---|
| ?0 - ?250,000 | 0% | ?0 |
| ?250,001 - ?400,000 | 20% | ?30,000 + 20% over ?250,000 |
| ?400,001 - ?800,000 | 25% | ?130,000 + 25% over ?400,000 |
| ?800,001 - ?2,000,000 | 30% | ?330,000 + 30% over ?800,000 |
| ?2,000,001 - ?8,000,000 | 35% | ?1,330,000 + 35% over ?2,000,000 |
| ?8,000,001+ | 35% | ?2,780,000 + 35% over ?8,000,000 |
Personal Exemptions
Basic Personal Exemption
- ?50,000 for single filers
- ?50,000 for married individuals
- ?50,000 for heads of family
- ?50,000 for each dependent
Additional Exemptions
- ?25,000 for each qualified dependent child
- ?8,000 premium payment for health insurance
- ?240,000 home mortgage interest
- ?25,000 for each parent 60+ years old
Withholding Tax for Employees
Employers are required to withhold income tax from employee salaries using the BIR withholding tax tables. The withholding is based on the employee's compensation income and personal exemptions.
Monthly Withholding Tax Table (Simplified)
| Monthly Salary Range | Tax Rate | Base Tax |
|---|---|---|
| ?20,833 - ?33,332 | 20% | ?0 |
| ?33,333 - ?66,666 | 25% | ?2,500 |
| ?66,667 - ?166,666 | 30% | ?10,833 |
| ?166,667 - ?666,666 | 32% | ?40,833 |
Percentage Tax for Self-Employed
8% Income Tax Rate
- Mixed income earners (business + compensation)
- Gross sales/receipts = ?250,000
- 8% of gross sales/receipts in excess of ?250,000
- In lieu of graduated income tax rates
Quarterly Payments
- Due on April 15, July 15, October 15, January 15
- Based on previous quarter's gross sales
- Penalties for late filing/payment
- Can be credited against annual income tax
Tax Due Dates
| Tax Type | Filing Period | Due Date |
|---|---|---|
| Annual Income Tax | Calendar Year | April 15 |
| Quarterly Percentage Tax | Quarterly | 15th of month following quarter |
| Monthly Withholding | Monthly | 10th of following month |
| Expanded Withholding Tax | Monthly | 10th of following month |
Philippines vs. Other Countries
| Country | Top Rate | Tax Threshold | Personal Exemption |
|---|---|---|---|
| Philippines | 35% | ?250,000 | ?50,000 |
| Singapore | 22% | $0 | $0 |
| Malaysia | 28% | RM35,000 | RM9,000 |
| Thailand | 35% | THB150,000 | THB60,000 |
Key Takeaways
- Philippine income tax uses 7 brackets from 0% to 35%
- ?250,000 tax threshold is one of the highest in Asia
- Personal exemption of ?50,000 per individual
- Mandatory withholding for employees
- 8% income tax option for mixed income earners
- Quarterly percentage tax for self-employed
- April 15 deadline for annual tax returns
- TRAIN Law modernized the tax system
- BIR administers all income tax collection
- Progressive system benefits lower and middle-income earners