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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.
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.
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.