Freelancer 8% Tax

8% of annual gross receipts above ₱250,000, for a purely self-employed taxpayer under the VAT threshold.

Updated October 2026. Based on 2024-2026 BIR tax tables, SSS, PhilHealth, GSIS, and Pag-IBIG contribution schedules.

The 8% option is in the TRAIN Law, Republic Act 10963, and Revenue Regulations No. 8-2018. Tax for the year is 8% of gross receipts minus ₱250,000. It is available when gross receipts do not exceed ₱3,000,000. Above that, graduated tax and VAT apply.

Employees use a different computation. A salary still goes through SSS or GSIS, PhilHealth, Pag-IBIG, and withholding tax on the salary calculator.

Frequently Asked Questions

Who can use the 8% rate?+

A purely self-employed individual or professional whose gross sales or receipts and other non-operating income do not exceed the ₱3,000,000 VAT threshold. Mixed income, from both a salary and a side practice, does not get this same ₱250,000 reduction on the business income.

Does 8% include SSS and PhilHealth?+

No. The 8% replaces graduated income tax and the 3% percentage tax. Contributions are separate and are not computed on this page.

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