Philippine Withholding Tax Table
Graduated Income Tax Rates for 2024-2026 (TRAIN Law)
About Philippine Income Tax
The Philippines uses a graduated tax rate system under the Tax Reform for Acceleration and Inclusion (TRAIN) Law. This means the tax rate increases as your income increases, but you only pay the higher rate on the income within each bracket.
The tax is computed based on your annual taxable income, then divided by 12 to get the monthly withholding tax deducted from your salary.
Withholding Tax Brackets
| Annual Taxable Income | Tax Rate | Tax Computation |
|---|---|---|
₱0 - ₱250,000 | 0% | No tax |
₱250,001 - ₱400,000 | 15% | Plus 15% of excess Over ₱250,000 |
₱400,001 - ₱800,000 | 20% | Base: ₱22,500 Plus 20% of excess Over ₱400,000 |
₱800,001 - ₱2,000,000 | 25% | Base: ₱102,500 Plus 25% of excess Over ₱800,000 |
₱2,000,001 - ₱8,000,000 | 30% | Base: ₱402,500 Plus 30% of excess Over ₱2,000,000 |
₱8,000,001 and above | 35% | Base: ₱2,202,500 Plus 35% of excess Over ₱8,000,000 |
How to Calculate Your Tax
Formula:
Step 1: Calculate annual taxable income = Monthly salary × 12
Step 2: Find your tax bracket from the table above
Step 3: Annual Tax = Base amount + (Rate × Excess amount)
Step 4: Monthly withholding tax = Annual tax ÷ 12
Examples:
Monthly Salary
₱20,000
Annual Income
₱240,000
Tax Bracket
0%
Annual Tax
₱0
No tax - below ₱250,000 threshold
Monthly withholding: ₱0.00
Monthly Salary
₱30,000
Annual Income
₱360,000
Tax Bracket
15%
Annual Tax
₱16,500
Tax on ₱110,000 excess (360k - 250k)
Monthly withholding: ₱1,375.00
Monthly Salary
₱50,000
Annual Income
₱600,000
Tax Bracket
20%
Annual Tax
₱62,500
Base ₱22,500 + 20% of ₱200,000 excess
Monthly withholding: ₱5,208.33
Key Points to Remember
- 1Tax-Free Threshold: The first ₱250,000 of your annual income is tax-free (approximately ₱20,833/month).
- 2Graduated Rates: You only pay the higher rate on income within each bracket, not on your entire income.
- 3Taxable Income: This is your gross income minus allowable deductions (SSS, PhilHealth, Pag-IBIG contributions, etc.).
- 4Withholding Tax: Employers deduct this tax monthly from your salary and remit it to the BIR on your behalf.
Want to Calculate Your Net Salary?
Use our salary calculator to see your exact tax and take-home pay
Go to CalculatorNote: This tax table is based on the TRAIN Law (RA 10963) implemented in 2018 and updated rates for 2024-2026. Tax laws and rates may change. For official guidance, consult with the Bureau of Internal Revenue (BIR) or a tax professional.