Annual income tax calculator
Estimate Philippine income tax under graduated rates using annual taxable income. Review the tax brackets below and check which income and deductions belong in your calculation.
How this calculation works
Enter taxable income after applicable exclusions and allowable deductions. This tool applies the graduated table effective from 2023 onward. It does not choose deductions, compute business percentage tax or VAT, apply tax credits, or decide whether an 8% business-tax election is available.
Which tax rules does this use?
The graduated individual income-tax schedule comes from NIRC Section 24(A)(2), amended by Republic Act 10963 (TRAIN). These bands apply from 1 January 2023 onward. Department of Finance explanation.
| Taxable income | Annual income tax before credits |
|---|---|
| Up to ₱250,000 | ₱0 |
| Over ₱250,000 to ₱400,000 | 15% of the amount above ₱250,000 |
| Over ₱400,000 to ₱800,000 | ₱22,500 + 20% above ₱400,000 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500 + 25% above ₱800,000 |
| Over ₱2,000,000 to ₱8,000,000 | ₱402,500 + 30% above ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% above ₱8,000,000 |
BIR published tax table, Table 2. Only the amount above your band’s lower threshold receives that band’s percentage.
An example with ₱500,000
For ₱500,000 of annual taxable income, tax is ₱22,500 + 20% × ₱100,000 = ₱42,500, before tax credits. It is not 20% of the full ₱500,000.
Taxable income is not the same as money received
The ₱250,000 band applies to annual taxable income, not automatically to gross pay, sales or bank deposits. Applicable exclusions and deductions must be established first. Zero income tax does not automatically remove registration or filing obligations.
For graduated mixed income, combine taxable employment and business income before applying these bands, do not claim the zero-rate band separately for each. Withheld tax and prior payments can reduce the balance payable, this calculator shows tax before those credits.
Freelancing, selling and the 8% option
The elective 8% regime uses a different base and eligibility rules. This calculator does not apply it. The ₱250,000 reduction available to qualifying purely self-employed taxpayers under that option is not an extra business-income reduction for mixed-income earners. See BIR Revenue Regulations 8-2018.
Understand taxes on freelance and online income, or use the salary calculator for ordinary employee take-home pay.
Sources & assumptions
Rules and sources reviewed 30 September 2026. Estimates are for planning, actual payroll and lender terms can differ.
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