Philippine Income Tax Computation

An easy tool by TaxCalcPH to compute your take-home pay.

Effortless Tax Computation for Your Take-Home Pay

Navigating Philippine tax laws can be complex, but our tool makes income tax computation straightforward. TaxCalcPH helps you accurately compute your take-home pay by providing a clear breakdown of your salary and deductions. Whether you're paid monthly, semi-monthly, daily, or annually, our calculator performs a detailed tax computation based on the latest 2026 rules, including SSS, PhilHealth, and Pag-IBIG. Enter your details to see a clear summary of your earnings.

Income Details

Allowances:
SSS:
PhilHealth:
Pag-IBIG:

Your results will appear here

Enter your income details to get started.

Income Tax Computation Details

How this is computed & why your payslip may differ

Our method

  • Monthly: taxable = salary − non-taxable allowances − contributions → annualize (×12) → CREATE graduated brackets → ÷12.
  • Daily: daily rate × work-days-in-month (default 22) → monthly → the same annualized method.
  • Contributions: SSS 5% of Monthly Salary Credit (₱4,500–₱35,000), PhilHealth 2.5% employee share (cap ₱100,000), Pag-IBIG 2% (cap ₱200/month).
  • The first ₱250,000 of annual taxable income is tax-free.

Why your payslip (or another tool) may differ

  • Day-count constant (daily-paid): this calculator annualizes daily pay on 22 work days/month (264/year). Other methods use different constants — e.g., 21.75 (261/year) — and the BIR daily withholding table is built on a ~313 days/year basis. None is “the” standard; they’re just different ways of annualizing, and the same daily rate lands in a different bracket under each.
  • Withholding method: this tool annualizes cleanly (×12); employers withhold using BIR per-period withholding tax tables, which round per period — usually only a few pesos different for monthly-salaried pay.
  • Contribution rounding & MSC bracketing: the SSS monthly salary credit steps in ₱500 increments, and contributions are rounded to the peso.
  • Not included here: 13th-month pay (the first ₱90,000 is exempt), de minimis benefits, overtime, and bonuses — your payslip may include these.

Example — ₱1,000/day, income tax only

At ₱1,000/day, every method’s annualized income (₱261k–₱313k) lands in the same 15% bracket (₱250,001–₱400,000) — so the rate is identical; what differs is the taxable base above the ₱250,000 tax-free floor.

This calculator (22 days/mo → 264/yr)

₱264,000 annual → 15% bracket → 15% × (₱264,000 − ₱250,000) = 15% × ₱14,000 = ₱2,100/yr ÷ 12 = ₱175.00/mo.

21.75 days/mo (261/yr) — another method

₱261,000 annual → 15% bracket → 15% × ₱11,000 = ₱1,650/yr ÷ 12 = ₱137.50/mo.

26 days/mo (312/yr)

₱312,000 annual → 15% bracket → 15% × ₱62,000 = ₱9,300/yr ÷ 12 = ₱775.00/mo.

BIR withholding tax table (the official employer method)

Built on a ~313-day annualization: ₱313,000 annual → 15% bracket → 15% × ₱63,000 = ₱9,450/yr. Withheld per day (~₱30/day), so over 22 working days ≈ ₱664/mo, or 26 days ≈ ₱785/mo — rounded per day on the payslip.

Illustrative — income tax only, before contributions. For monthly-salaried pay the day-count constant doesn’t apply; the only variance is withholding-table rounding (a few pesos per period).

How Your Take-Home Pay Is Calculated

Three things come off your gross pay before you reach net take-home: mandatory contributions (SSS, PhilHealth, Pag-IBIG), then income tax under the TRAIN/CREATE graduated brackets, and finally any non-taxable allowances added back. The first ₱250,000 of taxable income is tax-free.

This calculator applies the exact 2026 BIR, SSS, PhilHealth, and Pag-IBIG schedules — no estimates, no stale tables. To go deeper into each step (with the full bracket and contribution tables and worked examples), read our guides:

Who This Calculator Is For

Frequently Asked Questions

Is the first ₱250,000 really tax-free?

Yes. Under the TRAIN/CREATE schedule, taxable income up to ₱250,000 per year falls in the 0% bracket, so most minimum-wage and lower-income earners pay no income tax at all.

Are my calculation inputs saved or sent anywhere?

No. Every computation runs entirely in your browser — nothing is stored on a server and no inputs are transmitted. See our privacy policy for the full details.

Should I choose the 8% flat tax or the graduated rates?

It depends on your deductible expenses. With low expenses, the 8% on gross (minus the ₱250,000 threshold) is often cheaper; with high expenses, graduated rates using the 40% Optional Standard Deduction or itemized costs may be better. The self-employed calculator above lets you compare both side by side.

Where can I see fully worked examples?

Our examples page walks through real self-employed scenarios with complete computations, and the help guide explains every tax rule and contribution rate the calculator applies.

This calculator provides planning estimates based on 2026 BIR, SSS, PhilHealth, and Pag-IBIG schedules. For filing, consult the BIR or a qualified tax professional.

Learn How Philippine Taxes Work

Browse all guides →

Plain-English guides with worked examples you can verify in the calculator.

Income Tax

Income Tax Brackets Explained

How the TRAIN/CREATE graduated brackets work, with marginal-rate examples.

Contributions

SSS, PhilHealth & Pag-IBIG

The three mandatory contributions on your payslip — rates, caps, and how they reduce tax.

Take-Home Pay

Computing Take-Home Pay

A step-by-step walk from gross salary to net pay, with a full worked example.

Business & Self-Employed

Optional Standard Deduction (OSD)

The 40% simplified deduction — when it beats itemizing your expenses.

Business & Self-Employed

Sole Proprietorship Tax

How a single-owner business is taxed — graduated vs 8%, and liability.

Business & Self-Employed

One Person Corporation (OPC)

OPC tax treatment, corporate rates, and how it compares to a sole prop.

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