Philippines Income Tax Calculator 2025
Calculate your personal income tax in the Philippines based on TRAIN Law. Includes PhilHealth, SSS, and Pag-IBIG (HDMF) contributions.
Calculate Income Tax
Enter your income details to see your tax breakdown
Philippines Tax System 2025
The Philippines uses a progressive income tax system under the TRAIN Law (Tax Reform for Acceleration and Inclusion), implemented in 2018. The system features graduated tax rates from 0% to 35%, with the first ₱250,000 of annual income completely tax-free.
Key Features:
- Tax-Free Threshold: First ₱250,000 of annual income is tax-free
- Progressive Rates: Tax rates range from 0% to 35% based on income brackets
- Mandatory Contributions: PhilHealth, SSS, and Pag-IBIG are required
- Tax Deductible: All mandatory contributions reduce your taxable income
- 13th Month Pay: Up to ₱90,000 is tax-exempt (not included in basic calculator)
2025 Income Tax Brackets (TRAIN Law)
| Annual Taxable Income | Tax Rate | Tax Calculation |
|---|---|---|
| ₱0 - ₱250,000 | 0% | Tax-free |
| ₱250,001 - ₱400,000 | 15% | 15% of excess over ₱250,000 |
| ₱400,001 - ₱800,000 | 20% | ₱22,500 + 20% of excess over ₱400,000 |
| ₱800,001 - ₱2,000,000 | 25% | ₱102,500 + 25% of excess over ₱800,000 |
| ₱2,000,001 - ₱8,000,000 | 30% | ₱402,500 + 30% of excess over ₱2,000,000 |
| Above ₱8,000,000 | 35% | ₱2,202,500 + 35% of excess over ₱8,000,000 |
Mandatory Contributions 2025
PhilHealth (National Health Insurance)
- Contribution Rate: 5% of monthly salary
- Employee Share: 2.5%
- Employer Share: 2.5%
- Minimum Base: ₱10,000
- Maximum Base: ₱100,000
- Status: Tax-deductible
SSS (Social Security System)
- Contribution: Based on monthly salary credit
- Maximum Salary Credit: ₱30,000
- Employee Share: 4.5% of salary credit
- Employer Share: 10% of salary credit
- Status: Tax-deductible
Pag-IBIG / HDMF (Home Development Mutual Fund)
- For salary ≤ ₱1,500: 1% of monthly salary
- For salary > ₱1,500: 2% of monthly salary
- Maximum Contribution: ₱200 per month
- Split: 50% employee, 50% employer
- Status: Tax-deductible
How the Calculator Works
- 1Calculate Monthly Salary: Annual income is divided by 12
- 2Compute Mandatory Contributions: PhilHealth, SSS, and Pag-IBIG based on monthly salary
- 3Calculate Taxable Income: Gross income minus annual contributions
- 4Apply Tax Brackets: Progressive rates from TRAIN Law applied to taxable income
- 5Calculate Net Income: Gross income minus total tax and contributions
Disclaimer
This calculator provides estimates for informational purposes only. Actual tax liabilities may vary based on additional factors such as:
- 13th month pay and bonuses (up to ₱90,000 tax-exempt)
- Additional deductions and exemptions
- Overtime pay and other benefits
- Regional variations in contribution rates
For official tax advice, please consult with the Bureau of Internal Revenue (BIR) or a licensed tax professional.