How the tax on your salary is computed
Start with your gross monthly compensation
your basic salary plus taxable allowances. BIR's calculator counts basic salary, representation, transportation, cost-of-living and fixed housing allowances as regular compensation.
Subtract your mandatory contributions (employee share only)
SSS, PhilHealth and Pag-IBIG. What's left is your taxable compensation.
Find your bracket in BIR's monthly withholding tax table
(below) and compute the tax: the fixed amount for your bracket plus the rate on the part above the bracket's floor.
Take-home pay
= gross pay − contributions − withholding tax.
Example, ₱30,000 a month: SSS ₱1,500 + PhilHealth ₱750 + Pag-IBIG ₱200 = ₱2,450 in contributions. Taxable pay: ₱30,000 − ₱2,450 = ₱27,550. That's in the 15% bracket: (₱27,550 − ₱20,833) × 15% = ₱1,007.55 tax. Take-home pay: ₱30,000 − ₱2,450 − ₱1,007.55 = ₱26,542.45.
BIR withholding tax table 2026 (monthly)
This is BIR's revised withholding tax table under the TRAIN law, in force since 1 January 2023 and still the table for 2026. These are the same figures BIR uses in its own withholding tax calculator for a monthly payroll.
| Monthly taxable compensation | Withholding tax |
|---|---|
| ₱20,833 and below | ₱0 |
| Over ₱20,833 to ₱33,332 | 15% of the excess over ₱20,833 |
| ₱33,333 to ₱66,666 | ₱1,875.00 + 20% of the excess over ₱33,333 |
| ₱66,667 to ₱166,666 | ₱8,541.80 + 25% of the excess over ₱66,667 |
| ₱166,667 to ₱666,666 | ₱33,541.80 + 30% of the excess over ₱166,667 |
| ₱666,667 and above | ₱183,541.80 + 35% of the excess over ₱666,667 |
Annual income tax table (2023 onward)
The monthly table follows from the yearly rates in the National Internal Revenue Code, as amended by the TRAIN law (Sec. 24(A)(2)):
| Annual taxable income | Income tax |
|---|---|
| Not over ₱250,000 | 0% |
| Over ₱250,000 to ₱400,000 | 15% of the excess over ₱250,000 |
| Over ₱400,000 to ₱800,000 | ₱22,500 + 20% of the excess over ₱400,000 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500 + 25% of the excess over ₱800,000 |
| Over ₱2,000,000 to ₱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 |
Take-home pay examples for 2026
Computed with the calculator above for an employee paid monthly by one employer, with no other income. Contributions are the employee shares only; your employer pays its own share on top.
| Monthly salary | SSS + PhilHealth + Pag-IBIG (employee) | Taxable pay | Withholding tax | Take-home pay |
|---|---|---|---|---|
| ₱20,000.00 | ₱1,700.00 | ₱18,300.00 | ₱0.00 | ₱18,300.00 |
| ₱25,000.00 | ₱2,075.00 | ₱22,925.00 | ₱313.80 | ₱22,611.20 |
| ₱30,000.00 | ₱2,450.00 | ₱27,550.00 | ₱1,007.55 | ₱26,542.45 |
| ₱40,000.00 | ₱2,950.00 | ₱37,050.00 | ₱2,618.40 | ₱34,431.60 |
| ₱50,000.00 | ₱3,200.00 | ₱46,800.00 | ₱4,568.40 | ₱42,231.60 |
| ₱70,000.00 | ₱3,700.00 | ₱66,300.00 | ₱8,468.40 | ₱57,831.60 |
| ₱100,000.00 | ₱4,450.00 | ₱95,550.00 | ₱15,762.55 | ₱79,787.45 |
The take-home pay here is before any other deductions your employer may make, such as loan repayments or company benefits.
Is a ₱25,000 or ₱30,000 salary taxable?
Yes, a little. What matters is your taxable pay after contributions, not your gross salary:
- ₱20,000 a month: taxable pay ₱18,300, below ₱20,833, so no withholding tax.
- ₱25,000 a month: taxable pay ₱22,925, so (₱22,925 − ₱20,833) × 15% = ₱313.80 a month.
- ₱30,000 a month: taxable pay ₱27,550, so ₱1,007.55 a month.
As a rough guide, if your gross salary is up to about ₱22,750 a month, your contributions usually bring your taxable pay below ₱20,833 and you pay no income tax. The exact cut-off depends on your SSS bracket, so use the calculator.
Your mandatory deductions
The calculator uses the 2026 employee shares. Each has its own guide and calculator:
| Deduction | Employee share in 2026 | Details |
|---|---|---|
| SSS | 5% of your monthly salary credit (MSC), with MSCs from ₱5,000 to ₱35,000, so at most ₱1,750 | SSS contribution table · SSS calculator |
| PhilHealth | 2.5% of your monthly basic salary, between ₱10,000 and ₱100,000, so ₱250 to ₱2,500 | PhilHealth contribution · PhilHealth calculator |
| Pag-IBIG | 2% of up to ₱10,000 of your monthly pay, so at most ₱200 (1% if you earn ₱1,500 or less) | Pag-IBIG contribution |
These contributions aren't taxed: BIR's calculator takes them out before computing the tax.
13th month pay and bonuses: the ₱90,000 rule
Your 13th month pay and other benefits (Christmas bonus, productivity incentives and similar) are tax-free up to ₱90,000 a year in total, under NIRC Sec. 32(B)(7)(e) as amended by the TRAIN law. Only the part above ₱90,000 is added to your taxable income.
Enter your total 13th month pay and bonuses for the year in the calculator to see the effect on your yearly tax. For example, on a ₱30,000 salary with ₱120,000 of 13th month pay and bonuses, ₱30,000 is above the cap, and the yearly tax goes from about ₱12,090 to about ₱16,590. To work out the 13th month pay itself, use the 13th month pay calculator.
Minimum wage earners pay no income tax
The TRAIN law says minimum wage earners are exempt from income tax on their taxable income, and their holiday pay is exempt too. Tick "I'm a minimum wage earner" in the calculator: you still pay your SSS, PhilHealth and Pag-IBIG contributions, but no withholding tax on your minimum wage.
Freelancers and the self-employed
This calculator is for employees. If you're self-employed or a professional earning business income, the TRAIN law lets you choose an 8% tax on gross sales or receipts above ₱250,000 instead of the graduated rates and the percentage tax, as long as your gross sales or receipts don't exceed the VAT threshold. If you earn both a salary and business income (a "mixed income earner"), your salary is still taxed using the tables above. Ask BIR or your Revenue District Office which option applies to you.
Common mistakes
- Applying the table to your gross salary. Subtract SSS, PhilHealth and Pag-IBIG first; the table applies to taxable pay.
- Using the old 2018–2022 table. Rates dropped on 1 January 2023 (the first bracket went from 20% to 15%). Old calculators and payslip templates may still use the 2018 rates.
- Using last year's SSS rate. The SSS employee share is 5% under the schedule effective January 2025, with an MSC of up to ₱35,000.
- Counting the employer's share as your deduction. Only the employee share comes out of your pay.
- Forgetting the ₱90,000 rule. Bonuses below the cap aren't taxed; only the excess is.
Frequently asked questions
How do I compute the income tax on my salary in the Philippines?
Subtract your SSS, PhilHealth and Pag-IBIG employee contributions from your monthly salary to get your taxable pay. Then use BIR's monthly withholding tax table: ₱0 up to ₱20,833, then 15% of the excess, rising to 35% at the top. Example: ₱30,000 salary → ₱27,550 taxable → ₱1,007.55 tax.
How much is the tax on a ₱25,000 salary?
About ₱313.80 a month. Contributions of ₱2,075 bring your taxable pay to ₱22,925, and 15% of the ₱2,092 above ₱20,833 is ₱313.80. Your take-home pay is about ₱22,611.20.
Is a ₱30,000 salary taxable in the Philippines?
Yes. After ₱2,450 in contributions, your taxable pay is ₱27,550 and the withholding tax is ₱1,007.55 a month, leaving ₱26,542.45.
Up to how much salary is tax-free?
Taxable pay of ₱20,833 a month (₱250,000 a year) or less isn't taxed. Because contributions are deducted first, that usually means a gross salary of up to about ₱22,750 a month. Minimum wage earners are exempt regardless.
What is the BIR withholding tax table for 2026?
The TRAIN law table effective 1 January 2023: ₱0 up to ₱20,833 a month; 15% of the excess over ₱20,833; ₱1,875 + 20% over ₱33,333; ₱8,541.80 + 25% over ₱66,667; ₱33,541.80 + 30% over ₱166,667; and ₱183,541.80 + 35% over ₱666,667.
Are SSS, PhilHealth and Pag-IBIG deducted before tax?
Yes. Your employee contributions to SSS, PhilHealth and Pag-IBIG are taken out of your pay before the withholding tax is computed.
Is the 13th month pay taxable?
Only the part of your 13th month pay and other bonuses above ₱90,000 a year. Below that, they're tax-free.
Do minimum wage earners pay income tax?
No. The TRAIN law exempts minimum wage earners from income tax on their taxable income, and their holiday pay too. They still pay SSS, PhilHealth and Pag-IBIG contributions.
Is this the same as the BIR tax calculator?
It uses the same monthly withholding tax table as BIR's own calculator. BIR's calculator also handles other payroll periods and supplementary pay such as overtime and commissions. For the official figure, check your payslip or BIR's calculator.
What is the 8% income tax option?
An option for self-employed individuals and professionals whose gross sales or receipts don't exceed the VAT threshold: 8% on gross sales or receipts above ₱250,000, instead of the graduated rates and percentage tax. It doesn't apply to salaries.
Keep reading
13th month pay calculator
1/12 of your basic salary this year, with raises, absences, resignations and a tax check.
Open toolSSS contribution calculator
Your 2026 SSS contribution from your salary, for any member type.
Open toolPhilHealth contribution calculator
Your 2026 PhilHealth premium from your salary, for any member type.
Open toolPag-IBIG contribution
₱200 + ₱200 a month, OFW and self-employed rates, dividends and top-ups.
Read guideSources
- Republic Act No. 10963 (TRAIN law): NIRC Sec. 24(A)(2) tax schedule from 1 January 2023, minimum wage earner exemption, Sec. 32(B)(7)(e) ₱90,000 exclusion (Lawphil)
- BIR Withholding Tax Calculator for employees earning purely compensation income
- SSS contribution table (schedule effective January 2025)
- PhilHealth Circular 2020-0005, premium contribution (PDF)
- Republic Act No. 9679, Pag-IBIG contribution rates (Section 7, Lawphil)
Last checked 26 October 2026. See how we research and the updates log.