Income Tax Calculator Philippines 2024 — TRAIN Law, Filipino / English

TRAIN 2023 rates are lower and permanent—check if your calculator is outdated

The Tax Reform for Acceleration and Inclusion (TRAIN) Law introduced two separate income tax schedules. From 2018 to 2022 one schedule applied; from 2023 onward a second, lower one took over. The very top rate stayed at 35%, but every band beneath it fell — the PHP 250,001–400,000 band went from 20% to 15%, and the PHP 2,000,001–8,000,000 band from 32% to 30%. If you remember paying more tax five years ago, or if you are using an older online tool, you are working from the higher 2018–2022 schedule. The 2023 rates below are permanent law:

• 0% on income up to PHP 250,000
• 15% on PHP 250,001–400,000
• 20% on PHP 400,001–800,000
• 25% on PHP 800,001–2,000,000
• 30% on PHP 2,000,001–8,000,000
• 35% on income above PHP 8,000,000

The PHP 250,000 non-taxable threshold did not change, but everything above it is now taxed at a lower rate.

Thirteen-month pay and benefits: up to PHP 90,000 is tax-free

The most common Philippine tax question is whether 13th-month pay is taxable. The answer is nuanced: mandatory 13th-month pay, plus other benefits (productivity bonuses, year-end bonuses, etc.), are exempt from tax up to a combined PHP 90,000 per calendar year. Anything above that PHP 90,000 ceiling is taxable income. This calculator works on your taxable income figure—if your 13th-month pay and benefits total more than PHP 90,000, subtract PHP 90,000 and add only the excess to your ordinary income before entering it here.

Example: PHP 500,000 salary shows why effective tax is lower than the top bracket

Suppose your taxable income is PHP 500,000. You do not pay 20% on all of it—you pay marginal rates on each bracket:

Your effective tax rate is 42,500 ÷ 500,000 = 8.5%—far lower than the 20% bracket rate on your top earnings. This is how marginal taxation works.

Exclusions: SSS, PhilHealth, Pag-IBIG, and the 8% flat rate are separate

This calculator computes income tax only. It does not model SSS, PhilHealth, and Pag-IBIG contributions—these are mandatory payroll deductions that reduce your take-home pay but are not part of the income tax calculation. Some self-employed and professional taxpayers may opt for an 8% flat tax rate instead of the marginal brackets; that option is not included here. For a complete picture of your tax burden and deductions, consult the Bureau of Internal Revenue (BIR) or a licensed tax professional. The salary calculator includes these deductions in a take-home estimate.