Withholding Tax Calculator
Calculate your estimate take-home pay and withholding tax based on the latest RA 10963 TRAIN Law tables.
Income Details
Enter your monthly compensation before deductions.
monthly Deductions
- SSS₱ 0.00
- PhilHealth₱ 0.00
- Pag-IBIG₱ 0.00
monthly Computation
Philippine Tax Calculator 2026
Calculate your monthly income tax, SSS, PhilHealth, and Pag-IBIG contributions under the BIR TRAIN Law withholding rates.
This BIR Tax Calculator helps you easily compute your income tax, add up your monthly contributions, and give you your total net monthly income.
The Tax Calculator Philippines 2026 is using the latest BIR Income Tax Table as well as SSS, PhilHealth and Pag-IBIG Monthly Contribution Tables for the computation.
How to Use BIR Tax Calculator 2026
- 1
Enter your gross monthly salary in the Salary field. The calculator will instantly compute your SSS, PhilHealth, and Pag-IBIG deductions along with your withholding tax.
- 2
If you receive any non-taxable allowances (e.g. rice subsidy, clothing, laundry, or de minimis benefits), enter the total amount in the Non-Taxable Allowance field. This amount is added directly to your net pay without being taxed, provided that your combined allowances and bonuses do not exceed the ₱90,000 annual exemption limit.
- 3
Switch to Annual view to see a full-year breakdown. An additional Annual Bonus field will appear where you can enter any extra bonuses (e.g. 14th month, performance bonus). The calculator automatically computes your 13th month pay from your salary.
- 4
In the Annual view, the results card will show a detailed bonus tax breakdown — including the non-taxable portion and the taxable excess. Under the TRAIN Law, the ₱90,000 tax-free limit is a shared pool that applies to your combined 13th month pay, annual bonuses, and non-taxable allowances. Any combined amount exceeding this ₱90,000 limit is added to your total annual taxable income and taxed at your highest applicable bracket rate.
- 5
Toggle between Monthly and Annual anytime — your salary and allowance values will automatically convert (e.g. ₱10,000 monthly becomes ₱120,000 annual) so you can compare both views seamlessly.
How to Compute Income Tax
Based on the BIR withholding tax tables, you might think computing your income tax is as simple as finding your salary bracket and applying a direct deduction.
It is close to that, but there is a specific step-by-step calculation procedure that payroll departments use, which you can easily learn here.
Step 1: Get your monthly Taxable Income.
First, you need to calculate your Taxable Income. To do this, take your monthly gross salary and deduct your mandatory government contributions for SSS, PhilHealth, and Pag-IBIG.
Let's assume a sample monthly salary of ₱25,000.00 to demonstrate the computation:
Now, subtract your total contributions from your gross monthly salary to get your taxable income:
Step 2: Determine your tax bracket in the withholding table.
Look at the BIR Income Tax brackets below. With a monthly taxable income of ₱22,925.00, this falls into the second monthly bracket (compensation levels between ₱20,833.00 and ₱33,332.00).
| Monthly Taxable Income | Prescribed Withholding Tax |
|---|---|
| ₱20,833 and below | 0.00 |
| ₱20,833 — ₱33,332 | 15% over ₱20,833 |
| ₱33,333 — ₱66,666 | ₱1,875.00 + 20% over ₱33,333 |
| ₱66,667 — ₱166,666 | ₱8,541.67 + 25% over ₱66,667 |
| ₱166,667 — ₱666,666 | ₱33,541.67 + 30% over ₱166,667 |
| ₱666,667 and above | ₱183,541.67 + 35% over ₱666,667 |
Step 3: Compute your monthly withholding tax using the formula.
Under this bracket, the prescribed tax formula is 15% of the excess over the Compensation Level threshold (₱20,833.00):
Thus, your estimated monthly withholding tax is ₱313.80.
Step 4: Compute your Net Take-Home Pay.
Finally, subtract both your total contributions and monthly withholding tax from your gross monthly salary to find your final take-home salary:
Your final monthly net take-home pay is ₱22,611.20.
BIR Income Tax Table (TRAIN Law 2023-2026)
Below are the annual and monthly income tax brackets for individual taxpayers in the Philippines, effective from January 1, 2023, onwards. These rates are used by the BIR for withholding tax calculations.
| Annual Taxable Income | Monthly Equivalent | Prescribed Withholding Tax |
|---|---|---|
| ₱250,000 and below | ₱20,833 and below | 0% |
| ₱250,001 — ₱400,000 | ₱20,834 — ₱33,333 | 15% of excess over ₱250,000 |
| ₱400,001 — ₱800,000 | ₱33,334 — ₱66,666 | ₱22,500 + 20% of excess over ₱400,000 |
| ₱800,001 — ₱2,000,000 | ₱66,667 — ₱166,666 | ₱102,500 + 25% of excess over ₱800,000 |
| ₱2,000,001 — ₱8,000,000 | ₱166,667 — ₱666,666 | ₱402,500 + 30% of excess over ₱2,000,000 |
| Above ₱8,000,000 | Above ₱666,666 | ₱2,202,500 + 35% of excess over ₱8,000,000 |
Note: The personal income tax rates were adjusted starting January 1, 2023, under the TRAIN Law (Republic Act No. 10963) to further lower the tax burden for individual taxpayers whose annual taxable income is below ₱8,000,000.
Sample Computations for Common Salaries
Understand how government deductions and withholding taxes apply to standard salary scales under the TRAIN Law. Choose a monthly gross compensation to inspect the step-by-step math:
| SSS Share | ₱1,000.00 |
| PhilHealth Share | ₱500.00 |
| Pag-IBIG Share | ₱200.00 |
| Total Deductions | ₱1,700.00 |
| Gross Monthly Salary | ₱20,000.00 |
| Taxable Income | ₱18,300.00 |
| Monthly Income Tax | ₱0.00 (Exempt) |
| Net Monthly Salary | ₱18,300.00 |
₱20,000 Calculation Explanation
1. Deductions Math: SSS is computed at 5% of Monthly Salary Credit (₱20,000 MSC) = ₱1,000.00. PhilHealth is 2.5% of ₱20,000 = ₱500.00. Pag-IBIG is capped at ₱200.00. Sum = ₱1,700.00 total deductions.
2. Tax Math: Deducting contributions from gross gives ₱18,300.00 taxable monthly income (₱219,600.00 annualized). Since the annualized taxable income is below ₱250,000.00, it is completely tax-exempt under the TRAIN Law. Monthly tax = ₱0.00.
Disclaimer & Methodology
The results provided by this calculator are estimates based on independent research. While we strive for accuracy, this tool should not be considered as a substitute for professional financial or tax advice. Please consult with a certified professional (such as a CPA or financial advisor) before making any major financial decisions.
- Republic Act No. 10963 (TRAIN Law)