Question 1

What are the Philippines income tax rates for 2025?

Accepted Answer

Under the TRAIN Law, Philippines income tax rates for 2025 are: 0% for income up to PHP 250,000; 15% for PHP 250,001-400,000; 20% for PHP 400,001-800,000; 25% for PHP 800,001-2,000,000; 30% for PHP 2,000,001-8,000,000; and 35% for income above PHP 8,000,000. The first PHP 250,000 is completely tax-free.

Question 2

How are SSS contributions calculated in the Philippines?

Accepted Answer

SSS (Social Security System) contributions are based on monthly salary credit. For 2025, the employee share is approximately 4.5% of the monthly salary credit, with both minimum and maximum salary credit thresholds. The employer also contributes a larger share.

Question 3

What is the PhilHealth contribution rate in 2025?

Accepted Answer

For 2025, PhilHealth contributions are set at 5% of basic salary, shared equally between employee and employer (2.5% each). There is a monthly floor of PHP 10,000 and a ceiling of PHP 100,000 for the contribution base.

Question 4

What is the Pag-IBIG contribution rate?

Accepted Answer

Pag-IBIG (HDMF) contribution is 2% of monthly basic salary for employees earning over PHP 1,500, with a maximum contribution of PHP 100 per month for the employee share. Employers match the contribution.

Annual Income (PHP)	Tax Rate
Up to 250,000	0%
250,001 - 400,000	15% of excess over 250,000
400,001 - 800,000	22,500 + 20% of excess over 400,000
800,001 - 2,000,000	102,500 + 25% of excess over 800,000
2,000,001 - 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

Philippines Tax Calculator 2025

Philippines Tax Rates 2025 (TRAIN Law)