US 10-37% vs Philippines 0-35%. Use FEIE + FTC for retirement.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

๐Ÿฆ… USA

10-37% + state

Progressive Federal

Federal 10-37% + state taxes

๐Ÿ‡ต๐Ÿ‡ญ Philippines

0-35%

Progressive

0-35% progressive

Typical Annual Savings

At $100,000 income:

Use FEIE to exclude $126,500

That is Philippines popular retirement destination back in your pocket!

Tax Savings by Income Level

IncomeUS TaxPH TaxSavings10-Year
$100,000 $12,908 federal + state$23,125 Philippines (35% top)Use FEIE + Foreign Tax CreditComplex - need expat CPA
๐Ÿ’ก

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USA Pros and Cons

โœ… Pros

  • US passport freedom
  • SS/Medicare benefits
  • Dollar strength
  • Political stability

โŒ Cons

  • Citizenship-based taxation
  • Federal 10-37% + state
  • FBAR/FATCA reporting
  • Global compliance

Philippines Pros and Cons

โœ… Pros

  • Very low cost of living
  • English widely spoken
  • Retirement visa available
  • Beach islands lifestyle

โŒ Cons

  • US expats still owe IRS
  • 35% top tax rate
  • Infrastructure challenges
  • Typhoon risk

Frequently Asked Questions

Q: Do US retirees in Philippines pay tax?

Philippines: 0-35% on local income. US: owe IRS globally. Use FEIE ($126.5K) + Foreign Tax Credit. Social Security may be taxable. Need expat CPA for optimization.

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