BIR income tax table for 2026
By MoneyNow editorial deskEvery rate on this page is taken from the issuing authority — SSS, PhilHealth, Pag-IBIG, the BIR, the NWPC or the SEC — and carries the date it took effect. Where a figure cannot be sourced we say so rather than estimate.
The first ₱250,000 a year is not taxed
Annual taxable income up to ₱250,000 attracts no income tax at all. That is roughly ₱20,833 a month, which is why a large share of Filipino wage earners — including anyone on the current minimum wage — pays no income tax even though their payslip still shows SSS, PhilHealth and Pag-IBIG deductions.
Taxable income is not your salary
Tax is charged on what remains after your mandatory contributions come off. Working from a ₱30,000 monthly basic:
- SSS at 5% of a ₱30,000 salary credit: ₱1,500
- PhilHealth at 2.5% of basic: ₱750
- Pag-IBIG, capped: ₱200
- Monthly taxable income: ₱30,000 − ₱2,450 = ₱27,550
- Annualised: ₱330,600, which falls in the second bracket
Tax due is 15% of the excess over ₱250,000: ₱330,600 − ₱250,000 = ₱80,600 × 15% = ₱12,090 a year, or about ₱1,008 a month. The contributions reduce the bill as well as the take-home.
The brackets are annual, the withholding is periodic
Employers withhold each payday against the annual schedule, then reconcile at year end. A month with unusual pay — a large bonus, or backpay — can push a single period into a higher apparent bracket and over-withhold, which is corrected in the annual adjustment. If you changed jobs mid-year, both employers withheld as though they were your only one, so a year-end adjustment or a filing is often needed.
What is excluded
Thirteenth month pay and other benefits are exempt up to ₱90,000 combined a year. De minimis benefits within their prescribed limits are excluded. Mandatory SSS, PhilHealth and Pag-IBIG contributions are deductible, as above. Voluntary contributions above the mandatory amount are not.
If you are self-employed or freelancing
You can elect the 8% rate on gross sales or receipts above the ₱250,000 exemption, in place of the graduated table plus percentage tax. Which is cheaper depends on your expenses: the 8% option ignores them entirely, so it favours low-cost operations, while the graduated table lets you deduct. Run both before you elect, because the election generally binds for the taxable year.
Checking your own payslip
Our take-home pay calculator applies the schedule above alongside all three mandatory contributions and shows the basis for each figure, so you can compare it line by line against what your employer withheld.
In force from 2023-01-01 · BIR graduated income tax schedule (RA 10963, 2023 onwards)
Income tax is charged on annual taxable income — your pay after mandatory SSS, PhilHealth and Pag-IBIG contributions are deducted. The first ₱250,000 a year is not taxed at all, which is why a great many minimum-wage earners pay no income tax.
| Annual taxable income | Tax due | Monthly equivalent income |
|---|---|---|
| Up to ₱250,000 | None | Up to ₱20,833 |
| ₱250,001 to ₱400,000 | 15% of the excess over ₱250,000 | Up to ₱33,333 |
| ₱400,001 to ₱800,000 | ₱22,500 plus 20% of the excess over ₱400,000 | Up to ₱66,667 |
| ₱800,001 to ₱2,000,000 | ₱102,500 plus 25% of the excess over ₱800,000 | Up to ₱166,667 |
| ₱2,000,001 to ₱8,000,000 | ₱402,500 plus 30% of the excess over ₱2,000,000 | Up to ₱666,667 |
| Over ₱8,000,000 | ₱2,202,500 plus 35% of the excess over ₱8,000,000 | Over ₱666,667 |
Monthly equivalents divide by 12 and are indicative. Daily-rate earners: this site converts at 26 paid days a month.
Where these figures come from
- BIR graduated income tax schedule (RA 10963, 2023 onwards) — in force from 2023-01-01
Sources
Last updated 2026-07-26.