Tax Calculator Philippines 2025 [Fast, Accurate & 100% Free]
Are you looking for a BIR Personal Income Tax Calculator Philippines that makes filing taxes easier and faster? Well, you’ve come to the right place!
As a research analyst on Tax Computation Philippines, here I present you with our free online tool to calculate your taxes accurately without breaking the bank or taking up too much time.
Taxes are often complicated and require extensive knowledge to get them done correctly. Thankfully, technology has advanced enough to make our lives easier by offering tax calculators designed specifically with Filipinos in mind.
With just a few clicks of the mouse, taxpayers can quickly calculate their taxable income based on their deductions and exemptions as well as get an estimate of what they owe in taxes.
This type of tool not only saves time but also eliminates any errors that might occur while manually computing one’s taxes.
I will provide an overview of how to use this BIR Income tax calculator, the computation of income tax in the Philippines, an overview of train law and the applicable taxes, the benefits of the calculator, and some other useful resources, and explain how they can be used to save money and hassle when it comes to filing taxes.
So whether you’re new to taxation or just need help getting through your yearly filings, this Tax Calculator Philippines has got you covered!
How To Use Our BIR Tax Calculator Philippines?
Using this BIR Income Tax Calculator in the Philippines is quite simple and easy.
You just need to enter your Monthly Income and click Calculate. The calculator will compute your taxable income, monthly tax due, and Net Pay after deductions instantly and show results.
The calculator uses a simple formula based on the Philippines’ Latest BIR Tax Table 2025, which determines the rate of taxes depending on one’s taxable income and displays your take-home pay.
This makes it easier for self-employed individuals or those who are not covered by withholding taxes to accurately calculate their annual income tax liability.
With this tool at hand, calculating taxes has never been simpler. Just enter your information and let the calculator do its job!
Latest BIR Income Tax Table 2025
The BIR Income Tax Table is a helpful tool for Filipino taxpayers to use when calculating their taxes due. It outlines how much tax individuals must pay depending on their annual taxable income.
Revised Withholding Tax Table
Below is the revised withholding tax table with the fixed tax and rates based on different daily, weekly, semi-monthly, and monthly income brackets:
| DAILY | 1 | 2 | 3 | 4 | 5 | 6 |
| Compensation Range | ₱685 and below | ₱685 -₱1,095 | ₱1,096 – ₱2,191 | ₱2,192 – ₱5,478 | ₱5,479 – ₱21,917 | ₱21,918 and above |
| Prescribed Withholding Tax | 0.00 | 0.00 +15% over ₱685 | ₱61.65 +20% over ₱1,096 | ₱280.85 +25% over ₱2,192 | ₱1,102.60 +30% over ₱5,479 | ₱6,034.30 +35% over ₱21,918 |
| WEEKLY | 1 | 2 | 3 | 4 | 5 | 6 |
| Compensation Range | ₱4,808 and below | ₱4,808 – ₱7,691 | ₱7,692 – ₱15,384 | ₱15,385 – ₱38,461 | ₱38,462 – ₱153,845 | ₱153,846 and above |
| Prescribed Withholding Tax | 0.00 | 0.00 +15% over ₱4,808 | ₱432.60 +20% over ₱7,692 | ₱1,971.20 +25% over ₱15,385 | ₱7,740.45 +30% over ₱38,462 | ₱42,355.65 +35% over ₱153,846 |
| SEMI-MONTHLY | 1 | 2 | 3 | 4 | 5 | 6 |
| Compensation Range | ₱10,417 and below | ₱10,417 – ₱16,666 | ₱16,667 – ₱33,332 | ₱33,333 – ₱83,332 | ₱83,333 – ₱333,332 | ₱333,333 and above |
| Prescribed Withholding Tax | 0.00 | 0.00 +15% over ₱10,417 | ₱937.50 +20% over ₱16,667 | ₱4,270.70 +25% over ₱33,333 | ₱16,770.70 +30% over ₱83,333 | ₱91,770.70 +35% over ₱333,333 |
| MONTHLY | 1 | 2 | 3 | 4 | 5 | 6 |
| Compensation Range | ₱20,833 and below | ₱20,833 – ₱33,332 | ₱33,333 – ₱66,666 | ₱66,667 – ₱166,666 | ₱166,667 – ₱666,666 | ₱666,667 and above |
| Prescribed Withholding Tax | 0.00 | 0.00 +15% over ₱20,833 | ₱1,875.00 +20% over ₱33,333 | ₱8,541.80 +25% over ₱66,667 | ₱33,541.80 +30% over ₱166,667 | ₱183,541.80 +35% over ₱666,667 |
Taxpayers simply need to look up their taxable income range within the table and then calculate the total amount due based on their rate percentage and income level.
Annual Tax Table
This table, effective from January 1, 2023, and onwards, makes it easier for Filipinos to accurately determine exactly how much they owe in taxes each year under Section 24(A)(2) of the Tax Code of 1997, as amended by Republic Act No. 10963.
| Net Taxable Income Amount Bracket | Rate |
|---|---|
| Not over ₱ 250,000.00 | 0% |
| Over ₱ 250,000.00 but not over ₱ 400,000.00 | 15% of the excess over ₱ 250,000.00 |
| Over ₱ 400,000.00 but not over ₱ 800,000.00 | ₱ 22,500.00 + 20% of the excess over ₱ 400,000.00 |
| Over ₱ 800,000.00 but not over ₱ 2,000,000.00 | ₱ 102,500.00 + 25% of the excess over ₱ 800,000.00 |
| Over ₱ 2,000,000.00 but not over ₱ 8,000,000.00 | ₱ 402,500.00 + 30% of the excess over ₱ 2,000,000.00 |
| Over ₱ 8,000,000.00 | ₱ 2,202,500.00 + 35% of the excess over ₱ 8,000,000.00 |
Knowing one’s exact tax brackets can be useful when filing returns, as deductions or credits may be available at different levels, which could save the taxpayer money if they know where to take advantage of them.
How To Compute Income Tax In the Philippines?
To compute your income tax in the Philippines, you need to know what type of taxpayer you are: a compensation income earner or self-employed and professional.
Then use the applicable tax rate from the Withholding Tax Table provided by the BIR above. Individuals can also use this BIR table to determine if they qualify for certain exemptions, such as those of minimum wage earners.
From there, you should apply all salary deductions allowed under current Philippine law so that you get an accurate estimate of your monthly salary after deducting any applicable taxes.
This will help you better plan for your financial situation.
For Example, Computing Income Tax on a ₱35000 salary in the Philippines
To calculate income tax for a ₱35000 salary in the Philippines, we need to determine the taxable income, check the compensation range, and then apply the prescribed withholding tax for that range as per the latest BIR table.
The taxable income is calculated as the difference between the monthly income of ₱35000 and the total contributions.
Total Contribution = SSS Contribution + PhilHealth Contribution + Pag-IBIG Contribution
Total Contribution = ₱1350 + ₱875 + ₱200
Total Contribution = ₱2425
So, in this case, the taxable income is ₱32,575 (₱35000 – ₱2425).
With respect to the latest withholding tax table of BIR, since this taxable income of ₱32,675 is in the compensation range of ₱20,833 – ₱33,332, the prescribed withholding tax as per the BIR table is 0.00 +15% over ₱20,833. Here ₱20,833 is “Compensation Level”.
Income Tax = (Taxable Income – Compensation Level) x 15%
Income Tax = ( ₱32575 – ₱20833 ) x 15%
Income Tax = ₱11742 x 15%
Income Tax = ₱1761.3
So, the income tax is ₱1,761.3 on a monthly income of ₱35000.
How To Compute Net Pay After Deductions In the Philippines?
To determine the Net Pay After Deductions, we take the previous example above, so on the monthly salary of ₱35000, we need to first calculate the Total Deductions:
Total Deductions = Total Contributions + Income Tax
Total Deductions = ₱2425 + ₱1761.3
Total Deductions = ₱4186.3
Now we can calculate the Net Pay After Deduction on ₱35000 monthly income;
Net Pay After Deductions = Monthly Income – Total Deductions
Net Pay After Deductions = ₱35000 – ₱4186.3
Net Pay After Deductions = ₱30813.7
So, the Net-take home pay or Net salary or Net Pay after deductions is ₱30,813.7 on a monthly income of ₱35000 in the Philippines.
Tax Calculator Philippines Checklist
Tax calculation can be a complicated process, especially in the Philippines. That’s why having a comprehensive checklist before using a tax calculator is essential.
This way, you can ensure that all details provided are accurate and up-to-date before filing your taxes with confidence.
With this helpful checklist in mind, you’re well prepared to use our trusted tax calculator Philippines without worrying about errors or missed opportunities while filing your returns correctly every time!
What are the Benefits Of Using a BIR Tax Calculator In the Philippines?
Using a salary tax calculator in the Philippines is an invaluable tool for anyone who pays taxes.
- Saves Time: Quickly calculates taxes, allowing you to focus on other important tasks.
- Ensures Accuracy: Provides precise results by automatically including all relevant deductions.
- Promotes Compliance: Helps you adhere to local tax regulations, reducing the risk of penalties.
- Maximizes Savings: Identifies applicable deductions and credits to help lower your tax bill.
- Free and Accessible: Available online at no cost, making it easy for everyone to use.
Overall, using a BIR salary tax calculator makes tax season easier and more efficient!
An Overview Of The Train Law
The Tax Reform for Acceleration and Inclusion Law (TRAIN), or Republic Act No. 10963, was enacted in the Philippines on December 19, 2017, and took effect on January 1, 2018.
It is the first package of the Comprehensive Tax Reform Program (CTRP) aimed at modernizing the tax system.
Key Objectives
- Revenue Generation: To fund infrastructure and social services.
- Tax Relief: To reduce income tax for about 99% of taxpayers.
- Poverty Alleviation: To support low-income households through cash transfers.
Key Provisions
- Personal Income Tax (PIT): Lower rates for most individuals, with higher rates for top earners.
- Excise Taxes: Increased taxes on petroleum, tobacco, and sugary drinks to discourage consumption and raise revenue.
- Value Added Tax (VAT): Adjustments to exemptions and compliance measures.
- Estate and Donor’s Tax: Simplified rates for clarity and compliance.
- Cash Transfers: Monthly payments to the poorest households funded by increased consumption taxes.
Reception
The TRAIN Law has had mixed reactions. While it has increased government revenues and provided tax relief, critics argue that higher excise taxes have led to increased prices for basic goods, impacting low-income families.
In summary, the TRAIN Law aims to create a fairer tax system while addressing economic growth and poverty reduction in the Philippines.
BIR Income Tax Calculator Philippines FAQs
What Is The Tax For A 250,000 Pesos Annual Taxable Income?
There is no tax payable by an individual earning 250,000 pesos per year (approx 20,833 per month) as the Philippine government exempts the first 250,000 pesos from every Filipino’s earnings.
How much is the tax for 30,000 pesos in salary in the Philippines?
You pay ₱1,030.05 in taxes each month if your monthly income is ₱30,000 in the Philippines.
Are there any Special Tax Considerations when using a Tax Calculator in the Philippines?
Using a tax calculator in the Philippines involves several special tax considerations that can affect how individuals and businesses compute their tax liabilities.
Here are the key points:
- Income taxes vary depending on the type of individual you are and whether or not you have dependents.
- Corporate taxes also differ according to company size and industry, with different deductions available. For instance, corporations can opt for a standard deduction of 40% of gross income.
- Value Added Tax (VAT) is applicable for certain transactions, particularly for businesses earning above ₱1,919 monthly or ₱22,500 annually.
While tax calculators are valuable tools for estimating taxes in the Philippines, users must consider their specific circumstances regarding income type, applicable deductions, and current tax laws to ensure accurate calculations.
Does the Tax Calculator help with Retirement Planning?
The BIR tax calculator in the Philippines has limited use for retirement planning as it only estimates current-year tax liability. It does not factor in long-term considerations.
For retirement planning, the SSS Pension Calculator is more useful to Filipinos. It projects potential SSS pension amounts in retirement based on wages, contributions, age, etc.
This allows a better assessment of retirement income adequacy.
Wrapping Up
Overall, the BIR Income Tax Calculator Philippines is an essential tool to accurately determine your taxable income.
It can help understand how much you will owe at the end of the year, as well as what deductions are available.
With this knowledge, filers can make more informed decisions on their taxes and maximize any potential savings they may have.
Overall, using Tax Calculator Philippines is incredibly beneficial for anyone wanting to ensure accuracy and efficiency when computing their yearly taxes.
Not only does it assure compliance with applicable laws, but it also enables taxpayers to take advantage of various tax benefits while avoiding expensive penalties due to errors in calculation.