Income Tax Philippines Calculator

Background.

Philippine personal income tax is bracketed and progressive — under the TRAIN law's schedule, annual taxable income up to ₱250,000 is taxed at zero, and successive slices are taxed at rising rates up to 35% at the top. But for planning questions — how much of a raise survives tax, what a side contract nets, what to set aside quarterly — what you actually need is your effective rate: total tax as a share of total taxable income, one number that already folds the bracket arithmetic in.

That is what this page computes with: enter taxable income for a period and your applicable effective rate, and it returns the estimated tax and what remains after it. Because brackets tax slices rather than the whole, the effective rate always sits below your top marginal rate — someone whose top peso is taxed at 25% may find their overall bill is only 8–12% of taxable income, and using the marginal rate here would badly overstate the tax.

Finding the honest effective-rate input takes one prior step: run your income once through the official BIR bracket table (or take last year's annual return and divide total tax by taxable income). From there, this page's single multiplication answers the everyday variants quickly — different income levels near yours, monthly versus annual periods, gross-versus-net framing for a freelance quote.

The design is deliberately an estimator, not a return. Taxable income itself — after the ₱90,000 13th-month exclusion, SSS/PhilHealth/Pag-IBIG contribution deductions, the 8% flat option available to some self-employed taxpayers, and every other qualification — must come from the official rules, and the filed return is computed on the BIR's own tables. The scope note beside the result says exactly that.

What is income tax philippines calculator?

This is a planning estimator for Philippine income tax: estimated tax = taxable income × your effective tax rate, with after-tax income as the complement. The effective rate is total tax divided by taxable income — the single number that summarises where the progressive TRAIN-law schedule (0% below ₱250,000 of annual taxable income, graduated rates above it) lands for your situation. It answers ‘roughly what will this income net?’ in one multiplication; it does not determine taxable income, apply brackets, or replace the BIR's official computation.

How to use this calculator.

1. 01Establish your effective rate once: compute tax on your annual taxable income with the official BIR table — or divide last year's total tax by last year's taxable income — and note the percentage.
2. 02Enter the taxable income for the period you are planning (keep the rate and the income on the same annual or monthly basis).
3. 03Read the estimated tax and the after-tax remainder.
4. 04For a raise or side income, re-run with the new total — and remember extra income at the margin is taxed at your bracket rate, so recompute the effective rate for large changes rather than reusing the old one.
5. 05Before anything is filed or contractually promised, verify against the official computation — taxable income determination (exclusions, contributions, the self-employed 8% option) changes the answer more than the multiplication does.

The formula.

Estimated tax = taxable income × effective rate; after-tax income = taxable income − estimated tax. The work hides in the rate. A progressive schedule taxes income in slices — under TRAIN, the first ₱250,000 of annual taxable income at 0%, later slices at graduated rates rising to 35% — so total tax is a sum over slices, and the effective rate compresses that sum into tax-per-peso-of-income. It is always below the marginal (top-slice) rate: at ₱500,000 of taxable income, tax under the current schedule is 15% of the excess over ₱250,000 ≈ ₱37,500, an effective rate of 7.5% while the marginal rate is 15%. Confusing the two is the standard planning error — marginal answers ‘what happens to my next peso’, effective answers ‘what happens to all of them’, and this page's multiplication needs the latter. The engine multiplies and subtracts in Decimal arithmetic, rounding once at the output.

A worked example.

Frequently asked questions.

References& sources.

1. [1]U.S. Internal Revenue Service. Tax guidance current 2026. Official forms, instructions and tax topics. Retrieved 2026-08-06. independence: primary; access: open.
2. [2]OpenStax, Rice University. Principles of Finance, 2022. Chapters 6–10. Retrieved 2026-08-06. independence: secondary-check; access: open.
3. [3]U.S. Securities and Exchange Commission. Investor.gov current 2026. Investment products and risk. Retrieved 2026-08-06. independence: primary; access: open.