Kodigo Labs Tools2026 BIR income tax table (annual)
| Annual taxable income | Income tax due |
|---|---|
| ₱0 – ₱250,000 | 0% |
| ₱250,000.01 – ₱400,000 | 15% of the excess over ₱250,000 |
| ₱400,000.01 – ₱800,000 | ₱22,500 + 20% of the excess over ₱400,000 |
| ₱800,000.01 – ₱2,000,000 | ₱102,500 + 25% of the excess over ₱800,000 |
| ₱2,000,000.01 – ₱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 |
How your income tax is computed
- Start with your monthly taxable salary and subtract your SSS, PhilHealth and Pag-IBIG contributions.
- Multiply by 12 to get your annual taxable compensation.
- Add any 13th month pay and bonuses above ₱90,000.
- Apply the tax table above to get your annual tax, then divide by 12 for the monthly amount.
Example: Juan earns ₱35,000 a month and pays ₱2,000 a month in contributions. His annual taxable income is (₱35,000 − ₱2,000) × 12 = ₱396,000. That falls in the 15% bracket: (₱396,000 − ₱250,000) × 15% = ₱21,900 a year, or about ₱1,825 a month.
Want to check your year-end bonus? Try the 13th Month Pay Calculator.
Frequently asked questions
What tax table does this calculator use?
It uses the graduated income tax rates under the TRAIN Law (RA 10963) that took effect on January 1, 2023 and remain in effect for 2026. Income up to ₱250,000 a year is not taxed.
Are SSS, PhilHealth and Pag-IBIG contributions taxable?
No. Your mandatory employee contributions to SSS, PhilHealth and Pag-IBIG are deducted from your gross pay before income tax is computed.
Do minimum wage earners pay income tax?
Statutory minimum wage earners are exempt from income tax on their minimum wage, including holiday pay, overtime, night differential and hazard pay.
Is my 13th month pay taxed?
13th month pay and other bonuses are tax-free up to a combined ₱90,000 per year. Only the excess is added to your taxable income.
Is this the same as what my employer withholds?
It should be close for employees with one employer and regular pay. Actual withholding can differ because of payroll timing, taxable allowances, or year-end adjustments. For freelancers and businesses, other options like the 8% flat rate may apply.
Does this work for government employees?
Yes. Government and private-sector employees use the same BIR graduated tax table. The only difference is the deductions taken before tax: government employees pay GSIS instead of SSS, while PhilHealth and Pag-IBIG are the same for both.