BIR Income Tax Table (2023 onwards, TRAIN Law)
Annual graduated rates for individuals (RA 10963 as amended; applies to 2026).
| Annual taxable income | Tax due |
|---|---|
| ₱250,000 and below | 0% |
| Over ₱250,000 to ₱400,000 | 15% of excess over ₱250,000 |
| Over ₱400,000 to ₱800,000 | ₱22,500 + 20% of excess over ₱400,000 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500 + 25% of excess over ₱800,000 |
| Over ₱2,000,000 to ₱8,000,000 | ₱402,500 + 30% of excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of excess over ₱8,000,000 |
Formulas
Taxable income = Gross income − (SSS + PhilHealth + Pag-IBIG) − allowable deductions Tax = Base + Rate × (Taxable income − Bracket floor) Monthly tax = Annual tax ÷ 12 Example: ₱30,000/mo, contributions ₱4,530 Taxable = (30,000 − 4,530) × 12 = ₱305,640 Tax = 0 + 15% × (305,640 − 250,000) = ₱8,346 a year (≈ ₱695.50 a month)
8% Flat Option (self-employed and professionals)
Available if gross sales/receipts do not exceed ₱3,000,000 and the taxpayer is not VAT-registered. It replaces both income tax and the 3% percentage tax.
Tax = 8% × (Gross receipts − ₱250,000) (₱250,000 is not deducted if you also earn compensation income)
Percentage Tax
Non-VAT taxpayers on the graduated option pay 3% of quarterly gross receipts (reduced to 1% only from July 2020 to June 2023; back at 3% since July 2023).
Percentage tax = 3% × Quarterly gross receipts
Withholding on Employees
Monthly withholding ≈ Annual tax (above table) ÷ 12, using taxable compensation after mandatory contributions