BIR Withholding Tax Calculator

Withholding tax on this site follows the Tax Reform for Acceleration and Inclusion (TRAIN) Law, Republic Act 10963. Employee SSS, PhilHealth, and Pag-IBIG come off monthly gross first. The brackets are annual. Taxable monthly pay is multiplied by 12, the graduated rates are applied, and the annual tax is divided by 12. That monthly figure is what the net pay calculator labels as income tax.

The first ₱250,000 of annual taxable income is taxed at 0%. The next band, up to ₱400,000, is 15% of the amount over ₱250,000. Rates then step through 20%, 25%, 30%, and 35% above ₱8,000,000. You can read every band on the BIR tax table.

What this estimate includes

The tax line is computed on taxable compensation, not on gross. A ₱20,000 monthly salary is still inside the 0% band after contributions. A ₱30,000 salary leaves ₱27,550.00 a month after SSS, PhilHealth, and Pag-IBIG, or ₱330,600.00 a year. The amount over ₱250,000 is taxed at 15%, which is ₱1,007.50 a month.

The longer net-pay walkthrough is in the net salary guide. Rates were reviewed against the TRAIN table stored for 2024–2026. Confirm a year-end adjustment with your BIR Form 2316 or your employer.

A salary inside the tax-free band, and one above it

₱20,000 a month stays inside the 0% band after contributions, so withholding is ₱0. ₱30,000 a month is the worked example above: taxable compensation of ₱27,550.00, monthly withholding of ₱1,007.50.