Philippines income tax rates for employees
The first ₱250,000 of taxable pay a year is not taxed. Above that, rates rise from 15% to 35%. These rates have applied since 1 January 2023.
Annual tax table
| Taxable pay a year | Tax |
|---|---|
| Up to ₱250,000 | None |
| 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 |
Monthly withholding table
Your employer withholds tax from each month's taxable pay using the BIR's table, then settles the difference from the annual table at year end.
| Taxable pay a month | Tax withheld |
|---|---|
| ₱20,833 or less | None |
| Over ₱20,833 to below ₱33,333 | 15% of the excess over ₱20,833 |
| ₱33,333 to below ₱66,667 | ₱1,875.00 + 20% of the excess over ₱33,333 |
| ₱66,667 to below ₱166,667 | ₱8,541.80 + 25% of the excess over ₱66,667 |
| ₱166,667 to below ₱666,667 | ₱33,541.80 + 30% of the excess over ₱166,667 |
| ₱666,667 and over | ₱183,541.80 + 35% of the excess over ₱666,667 |
What counts as taxable pay
Your pay, less your own share of SSS, PhilHealth and Pag-IBIG, and union dues. There are no other deductions for employees. Since the TRAIN law there is no extra exemption for a spouse or children.
What is not taxed
- 13th month pay and other benefits, up to ₱90,000 a year in total. The excess is taxable.
- The statutory minimum wage, with the holiday, overtime and night pay of a minimum wage earner. Other pay to the same worker is taxed.
- De minimis benefits within their limits, for example a rice allowance up to ₱2,500 a month and a uniform allowance up to ₱8,000 a year (RR 29-2025).
Worked examples
Monthly: taxable pay of ₱27,550 is taxed at 15% on the ₱6,717 above ₱20,833, or ₱1,007.55.
Yearly: taxable pay of ₱610,000 falls in the 20% band: ₱22,500 + 20% of ₱210,000 = ₱64,500.00.
See your own figures in the take-home pay calculator.
Sources: RA 10963 (TRAIN) s.5, NIRC 24(A)(2)(a); BIR Annex E to RR 11-2018; NIRC 32(B)(7)(e) and (f); RA 10963 s.11 and s.12; year-end settlement, NIRC 79 and RR 11-2018 s.2.79(B); RR 11-2018 s.2.78.1(B)(13); RR 29-2025. Sources and method.