How to use the salary tax calculator
- Enter your monthly gross compensation: basic pay plus taxable allowances and regular taxable pay items.
- Enter the non-taxable amount. This normally includes your employee share of SSS, PhilHealth and Pag-IBIG, plus de minimis benefits within BIR limits. If you are unsure, use the net pay calculator, which subtracts contributions automatically.
- Press Calculate to see monthly taxable pay, estimated monthly withholding tax, annual tax and your effective tax rate.
BIR income tax table for 2026 (TRAIN Law)
Republic Act No. 10963, the Tax Reform for Acceleration and Inclusion (TRAIN) Law, set two schedules of graduated rates. The second schedule took effect on January 1, 2023 and still applies in 2026:
| Annual taxable income | Income tax |
|---|---|
| Not over ₱250,000 | 0% |
| ₱250,000 – ₱400,000 | 15% of the excess over ₱250,000 |
| ₱400,000 – ₱800,000 | ₱22,500 + 20% of the excess over ₱400,000 |
| ₱800,000 – ₱2,000,000 | ₱102,500 + 25% of the excess over ₱800,000 |
| ₱2,000,000 – ₱8,000,000 | ₱402,500 + 30% of the excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of the excess over ₱8,000,000 |
See our full guide: BIR TRAIN tax table 2026 explained.
Formula
Taxable monthly = Gross − non-taxable items
Annual tax = TRAIN table(Taxable monthly × 12)
Monthly withholding ≈ Annual tax ÷ 12
Employers actually use the BIR withholding tax table per payroll period (daily, weekly, semi-monthly or monthly), which is derived from the same annual brackets, so the results match closely. At year end your employer annualizes your income and adjusts the December or final payroll so total withholding equals your exact annual tax.
Peso examples
- ₱20,000 taxable per month → ₱240,000 a year → below ₱250,000 → ₱0 tax.
- ₱30,000 taxable per month → ₱360,000 a year → 15% × ₱110,000 = ₱16,500 → ₱1,375 per month.
- ₱50,000 taxable per month → ₱600,000 → ₱22,500 + 20% × ₱200,000 = ₱62,500 → ≈ ₱5,208 per month.
- ₱100,000 taxable per month → ₱1,200,000 → ₱102,500 + 25% × ₱400,000 = ₱202,500 → ₱16,875 per month.
What is not taxable?
Common non-taxable items for employees include mandatory SSS, PhilHealth and Pag-IBIG employee contributions, union dues, de minimis benefits within the limits set by BIR regulations (for example rice subsidy, uniform allowance and medical cash allowance), and 13th month pay plus other benefits up to ₱90,000 a year. Minimum wage earners are exempt from income tax on their statutory minimum wage, holiday pay, overtime pay, night differential and hazard pay. Self-employed individuals and freelancers follow different rules and may choose the 8% option — read 8% vs graduated tax for freelancers.
Official sources
Last updated: October 30, 2026