Philippines Income Tax Calculator

Compute Philippine income tax with confidence using current TRAIN brackets and smart 8 percent versus graduated comparisons including OSD or itemized deductions mixed income handling MWE checks bonus exemption and withholding reconciliation plus clear breakdowns charts CSV and PDF export for accountants freelancers employees and small businesses with region aware notes and mobile friendly

Tax Settings (editable)
Last updated: 2025-09-03
Brackets auto-switch for 2018–2022 vs 2023+.
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1) Profile
This demo assumes same brackets for residents; NRA-NETB may be subject to final taxes—use with caution.
2) Compensation Income
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Up to cap is tax-exempt by default.
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Annual employee share (reduces taxable comp).
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3) Business / Professional Income
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All estimates only. For guidance, consult a tax professional.
Results
Total tax (before credits)
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Marginal bracket: —
Withholding credits
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Comp 2316 + Biz 2307
Amount due / (Refund)
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Positive = pay; Negative = refund
Effective tax rate
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Tax ÷ total income
Breakdown
Compensation taxable income—
Business taxable income—
Tax via graduated table (combined)—
Business 8% tax (if chosen)—
Total tax (selected method)—
Net Pay (approx.)
Annual gross compensation—
Tax on compensation share*—
Annual net pay (approx.)—
Net per period—
*If using 8% for business, compensation tax is computed separately. If using graduated for both, the 'comp share' is an estimate.
FAQ & Notes
  • 8% option: Available for qualifying self-employed/professionals who are not VAT-registered and whose gross receipts do not exceed the VAT threshold. For mixed-income earners, the ₱250k reduction applies to compensation; the business 8% is then applied on gross without the ₱250k reduction.
  • MWE: Minimum Wage Earners’ compensation is generally exempt; OT, night differential, and holiday pay are also exempt.
  • OSD vs Itemized: OSD is 40% of gross receipts. Itemized lets you enter actual expenses. This demo does not stack extra deductions on top of OSD.
  • Withholding reconciliation: Enter BIR 2316/2307 to estimate amount due or refund.
  • Disclaimer: This tool is for education only. Tax laws change; confirm with official BIR guidance or a tax professional.

How this calculator works

This calculator estimates Philippine income tax under the TRAIN regime and supports two major paths for self employed and mixed income taxpayers. The first path uses the graduated rate schedule with either the Optional Standard Deduction or itemized deductions. The second path applies the eight percent tax on gross sales or receipts subject to eligibility. Compensation income is handled separately when the eight percent option is elected. The tool also recognizes the ninety thousand peso exemption for thirteenth month pay and other benefits and subtracts employee shares of SSS PhilHealth and Pag IBIG from compensation before tax is computed. Withholding credits from BIR 2316 and 2307 are netted against the annual liability to arrive at either an amount due or a potential refund.

Graduated formula. Tax is computed by finding the bracket where taxable income falls then adding the base tax and the product of the excess over the bracket floor times the marginal rate. For example if the applicable year is twenty twenty three or later and taxable income is one million pesos the bracket base is one hundred two thousand five hundred and the excess over eight hundred thousand is two hundred thousand which is taxed at twenty five percent. Total regular tax equals base plus excess times rate. The calculator selects the year specific bracket table automatically from the settings panel and displays the current marginal rate for transparency.

Eight percent formula. For eligible non VAT self employed individuals the eight percent tax applies to gross receipts after subtracting two hundred fifty thousand pesos only when there is no compensation income for the year. If the taxpayer also earns compensation the reduction is considered on the compensation side only and the business eight percent applies directly on gross receipts. The tool enforces the VAT threshold check and shows a warning when the flat option is not available. When the eight percent route is used the compensation part is still taxed using the graduated schedule and both amounts are summed for the final total before credits.

2023+ Graduated Brackets (summary)
BracketBase taxRate on excess
Up to ₱250,000₱00%
₱250,001–₱400,000₱015%
₱400,001–₱800,000₱22,50020%
₱800,001–₱2,000,000₱102,50025%
₱2,000,001–₱8,000,000₱402,50030%
Over ₱8,000,000₱2,202,50035%
Method chooser
Graduated + OSDUse when expenses approximate forty percent and record keeping is simple
Graduated + ItemizedUse when allowable expenses exceed forty percent and are well documented
8% on GrossUse when eligible not VAT and below the VAT threshold

Worked illustration. Suppose compensation is forty five thousand per month with one hundred thousand in bonuses and employee contributions of forty eight thousand. The calculator exempts ninety thousand of bonuses so ten thousand becomes taxable then subtracts contributions. For a side business with six hundred thousand in receipts and two hundred thousand expenses the taxable business income under the graduated path is four hundred thousand. Combined with compensation taxable income the tool computes regular tax using the bracket formula above. Under the eight percent path the business tax is eight percent of six hundred thousand because compensation exists and the two hundred fifty thousand reduction is not applied on the business side. The results panel compares totals and effective rates and the withholding reconciliation shows whether an amount is still due or a refund is expected. Export buttons create a CSV or a simple PDF snapshot you can attach to working papers or share with clients.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.