Withholding tax, net income and effective rate.
What it's for
Estimate the income tax on your salary for one payday and for the whole year, after your SSS, PhilHealth and Pag-IBIG come off.
Before you start
Have one payslip to hand: your gross pay for one period, and the SSS, PhilHealth and Pag-IBIG amounts taken from it. Know roughly what your 13th month pay and bonuses come to in a year, too.
Type your pay for one period
In Income per period, type your gross pay for one payday — before anything is taken off — in digits only, with no ₱ sign or commas.
Say how often you are paid
In Pay frequency, choose Monthly, Semi-monthly, Annual, Weekly or Daily to match the figure you typed. The page turns it into a yearly figure, so this matters.
Add your contributions
In Contributions per period, type your own SSS, PhilHealth and Pag-IBIG deductions for the same payday, added together. The note below the boxes links to the calculators that work them out.
Add your yearly benefits
In 13th month & benefits, yearly, type your 13th month pay and other bonuses for the whole year, or leave it blank. Only the part above the yearly exemption is taxed, and the working shows how much that is.
Press Calculate
Press Calculate. The answer at the top already changes as you type; the button brings it back into view.
Reading the result
If it goes wrong
Philippine income tax is graduated: the first ₱250,000 of taxable income each year is exempt, and each band above it taxes only the slice of income that falls inside it — 15%, then 20%, 25%, 30% and 35%.
That is why your bracket is not your tax rate. Someone on ₱1,000,000 is "in the 25% bracket" and pays roughly 15% of their income in tax, because the 25% applies only to the last ₱200,000 of it. The two figures differ by enough to matter, and the one people quote is the wrong one — so this page shows both.
It also follows that a raise can never leave you worse off. One peso more of income can never cost more than one peso of tax. "Don't take the raise, it pushes you into the next bracket" is advice people act on, and it is not true here.
Taxable income is your pay after SSS, PhilHealth and Pag-IBIG come off. This page takes those as an input rather than working them out — each is a separate statute with its own calculator, and a rule belongs in one place.
No, and this is the most common misreading of a graduated table. Each band taxes only the slice of income inside it. Someone earning ₱1,000,000 pays nothing on the first ₱250,000, 15% on the next ₱150,000, 20% on the next ₱400,000 and 25% only on the last ₱200,000 — an effective rate near 15%, not 25%.
No. Because only the income above each threshold is taxed at the higher rate, one peso more of income can never cost more than one peso of tax. Take the raise. This is worth stating plainly because the opposite is advice people genuinely act on.
Taxable income up to ₱250,000 a year is exempt — about ₱20,833 a month before deductions. And taxable income is after your SSS, PhilHealth and Pag-IBIG contributions come off, so the gross salary at which tax starts is a little higher than that.
Only the part above ₱90,000. The 13th month pay and other benefits are exempt up to a combined ₱90,000 a year; anything beyond that is added to your taxable compensation.
This annualises your income, taxes it, and divides back — which is what your annual return settles to. Employers withhold using the BIR’s own per-period tables, which can differ slightly in any single month and then reconcile at year end. A large gap usually means a difference in what is being treated as taxable, not an arithmetic error.
Because SSS, PhilHealth and Pag-IBIG are three separate statutes with three separate schedules, and a rule should exist in one place rather than being restated in a fourth tool. Work them out on their own pages and enter the total, or use the Basic Payroll Calculator, which composes all three and this one to take you from gross to net.
The current rates took effect in January 2023, and the 2018 to 2022 table was different at every band above the exemption. Set the year you are asking about and the calculation follows — a 2021 return worked at today’s rates is simply wrong.
Each rate applies only to the income inside its band, never to the whole.
That is 15.25% of the income — not the 25% of the top band. Taking 25% of the whole would give ₱250,000, overstating the tax by nearly ₱100,000.
Important
An estimate of tax on compensation income, annualised. It does not model business income, mixed income, fringe benefits or tax credits, and your employer's month-by-month withholding may differ before it reconciles at year end. Nothing you type here is sent to our servers — the calculation runs entirely in your browser.
