Freelancer & Self-Employed Tax Calculator Philippines 2026

How this is computed

The 8% flat tax applies to gross receipts minus a ₱250,000 annual allowance (purely self-employed only), and replaces both the graduated income tax and the 3% percentage tax entirely.

The graduated route taxes net income — gross receipts minus either the 40% Optional Standard Deduction or your actual itemized expenses — using the same 0% to 35% TRAIN law brackets applied to employee income, plus a 3% percentage tax charged on gross receipts regardless of profit.

Read the full breakdown, including exactly where the crossover sits for itemized deductions, in our 8% Flat Tax vs Graduated Rates guide.

Quick Answers to Common Questions

What counts as "gross receipts"?▼

Everything a client pays you before any expenses come out — including amounts already withheld under BIR Form 2307. Gross means gross.

Can I switch between the two routes every year?▼

You elect once a year, on your first quarterly return, and it's irrevocable until December 31. You can pick differently next year, but not mid-year.

Does this include the 5% withholding clients deduct?▼

No — the 5% (or 10%) your local clients withhold is a creditable advance against whichever tax route you end up owing, not a separate tax. This calculator shows your total annual liability before crediting any withholding.