Tax Calculator (Philippines)

Since January 2025, SSS Circular No. 2024-006 sets the contribution rate at 15% of the monthly salary credit — 10% employer, 5% employee — with the salary credit running from a ₱5,000 floor to a ₱35,000 ceiling in ₱500 steps. The portion of the credit above ₱20,000 funds the Mandatory Provident Fund (MPF), an individual-account tier stacked on the regular program, so a ₱30,000 earner's ₱1,500 employee share is really ₱1,000 regular plus ₱500 MPF. RA 11199's schedule ends at this rung: no further increase is legislated, which is why 2026 uses the same table.

Here is the gap this page exists to exploit honestly: when we audited the long-time top-ranking Philippine tax calculator in August 2026, its own worked sample still deducted ₱1,125 of SSS on a ₱25,000 salary — the 4.5% employee share that died with 2024; the correct figure is ₱1,250. Its displayed withholding table also carried the 2018–2022 fixed amounts while being labelled "effective January 1, 2023." Stale rates compound into a wrong net pay every single month, which is exactly what a take-home calculator is supposed to get right.

The order of operations matters. Your SSS, PhilHealth and Pag-IBIG employee shares are excluded from gross income by the tax code itself (NIRC Section 32(B)(7)(f)), so they come off before income tax is figured — a calculator that taxes your full salary and then subtracts contributions overstates the bill. PhilHealth's premium is 5% of monthly basic salary, split equally between you and your employer, computed on a floor of ₱10,000 and a ceiling of ₱100,000 — the rate PhilHealth's own Advisory 2026-0042 confirms as current. Pag-IBIG takes 2% of a fund salary capped at ₱10,000 (1% if you earn ₱1,500 or less), so nearly every employee pays exactly ₱200.

What survives those three deductions is your taxable compensation, and the TRAIN law's table (RA 10963, unchanged since January 2023) does the rest: the first ₱250,000 a year is tax-free, then 15%, 20%, 25%, 30% and 35% bands take over. The table below traces the full chain for a ₱30,000 monthly basic salary — the worked example every figure on this page is tested against.

Employers don't apply the annual tax table to each payslip directly — they withhold per payroll period using BIR's revised withholding table, which is the annual table cut into daily, weekly, semi-monthly and monthly brackets; the monthly zero bracket sits at ₱20,833, roughly ₱250,000 ÷ 12. Because those bracket edges are rounded, cumulative withholding drifts a few pesos from your true annual liability, so every December the employer runs annualization: recomputing tax on your actual annual taxable compensation with the statutory annual table and adjusting the final withholding. That's why December net pay often differs from the other eleven months, and why most employees never file a return themselves — the adjusted Form 2316 qualifies them for substituted filing.

This calculator computes withholding the transparent way: the statutory annual table applied to twelve times your monthly taxable pay, divided by twelve. On ₱30,000 that gives ₱1,007.50 against the payday table's ₱1,007.55 — a 60-centavo-per-year difference that annualization erases. We chose the derivation we could verify against the statute's text rather than hardcoding table roundings we couldn't source directly.

The input is your monthly basic salary, because that is what the contribution rules key on: PhilHealth's circular explicitly excludes overtime, commissions, allowances, bonuses and 13th-month pay from its salary base, and SSS maps compensation to a salary-credit bracket. Your 13th-month pay — one-twelfth of the basic salary you actually earned in the calendar year, payable by December 24 — is tax-exempt up to the ₱90,000 ceiling the TRAIN law set for 13th-month pay and other benefits combined; only the excess over ₱90,000 enters taxable compensation. This page models employed compensation; self-employed professionals have a different choice under the same law, including the 8% gross-receipts option in lieu of the graduated table.

Two caveats, stated plainly. Pag-IBIG's ₱10,000 fund-salary cap comes from HDMF Circular No. 460, which we could confirm only through secondary sources and the behaviour of every current payroll implementation — the fund's own site blocks automated verification. And a calculator is a planning tool: your payroll office and BIR are the authority on your actual payslip. Every rate above carries its source and the verification date shown in the results.