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🇵🇭 Philippines Income Tax Calculator 2026
Under the TRAIN Law, the first ₱250,000 of taxable income is tax-free, then rates step up from 15% to 35% above ₱8,000,000. Three mandatory contributions come off your pay before tax is calculated: SSS (5% of salary, capped around ₱35,000/month), PhilHealth (2.5%, capped at ₱100,000/month), and Pag-IBIG (2%, capped at ₱10,000/month). All three reduce your taxable income, so the tax bracket you land in is based on what's left after they're deducted, not your full salary. At ₱600,000 annual gross (₱50,000/month), a Philippine employee pays around ₱38,400 in SSS, PhilHealth, and Pag-IBIG and approximately ₱54,820 in income tax, taking home roughly ₱506,800. At ₱1,200,000, take-home is approximately ₱957,000.
Philippines Income Tax Brackets
| Income band | Rate |
|---|---|
| ₱0 – ₱250,000 | 0.00% |
| ₱250,000 – ₱400,000 | 15.00% |
| ₱400,000 – ₱800,000 | 20.00% |
| ₱800,000 – ₱2,000,000 | 25.00% |
| ₱2,000,000 – ₱8,000,000 | 30.00% |
| ₱8,000,000 and above | 35.00% |
Take-home pay examples
| Gross / year | Net / year | Net / month |
|---|---|---|
| ₱300,000 | ₱271,335 | ₱22,611 |
| ₱600,000 | ₱506,780 | ₱42,232 |
| ₱1,200,000 | ₱957,450 | ₱79,788 |
| ₱2,500,000 | ₱1,910,120 | ₱159,177 |
Employee figures only, standard deductions applied. Pension contributions, benefits in kind, and other personal factors are not included.
Data & assumptions
- Tax year
- 2026
- Last updated
- 2026-07-17
- Employment assumption
- Full-time employee, single filer
Figures are estimates based on standard deductions and do not account for pension contributions, benefits in kind, or individual circumstances. See our methodology for how these numbers are calculated.
Frequently Asked Questions
Are SSS, PhilHealth, and Pag-IBIG deductible from income tax?
Yes. All three mandatory employee contributions are excluded from taxable compensation under Philippine tax law, so they reduce your tax bill as well as showing up as separate payroll deductions.
Does SSS really work out to a flat 5%?
Close to it. The real SSS table assigns contributions in discrete ₱500 salary-credit steps rather than a perfectly smooth percentage, but the difference from treating it as a flat 5% (capped at the ₱35,000/month salary credit) comes out to a few pesos at most.
Will these tax rates change again soon?
Not on a known schedule. The TRAIN Law had two phases: higher rates from 2018-2022, and the lower rates shown here from 2023 onward, which are now permanent unless a future law changes them.
What is a good salary in Philippines?
Metro Manila dominates Philippine salary benchmarking; salaries in Cebu and Davao are meaningfully lower. A single person in Metro Manila typically needs ₱50,000–100,000 net per month to live comfortably in a safe area, which corresponds to roughly ₱750,000–1,600,000 gross given the tax rates shown here. The national median salary varies widely by sector: BPO and call centre roles start around ₱18,000–25,000 gross per month; software engineers at established tech companies and international firms earn ₱60,000–200,000 gross per month. The Philippine outsourcing and tech services sector has grown substantially, driving professional salaries higher throughout the past decade.
What is the 13th month pay and how is it taxed?
Philippine law requires all rank-and-file employees to receive 13th month pay of at least 1/12 of their annual basic salary, payable on or before 24 December. Under the TRAIN Law, the first ₱90,000 of 13th month pay and other year-end bonuses received per year is tax-exempt; any amount above ₱90,000 is included in taxable compensation and subject to normal rates. For most employees with a monthly basic salary below ₱90,000, the entire 13th month pay is tax-free. The exemption applies to all forms of the 13th month and Christmas bonus payments, not just the statutory minimum.
Are there any tax benefits for OFWs (Overseas Filipino Workers) or returning Filipinos?
OFWs are exempt from Philippine income tax on income earned abroad; only Philippine-source income is taxable for non-residents. An OFW working abroad and remitting money home does not pay Philippine income tax on those foreign earnings. Returning residents who have been non-resident OFWs continue to pay the standard TRAIN Law rates once they re-enter Philippine employment. The TRAIN Law also maintains a tax exemption on GSIS, SSS, PhilHealth, and Pag-IBIG contributions and on statutory 13th month pay up to ₱90,000, benefiting both regular employees and returning OFWs who rejoin the formal workforce.