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Philippines Tax Guide Hub 2026: Income Tax, Rates & Calculator

KEY INSIGHT
Philippines' hidden benefit: first PHP 250,000 is completely tax-free. Rates run 0-35%. A PHP 1,000,000 earner pays ~PHP 150,000 (~15%). OFW income: exempt while abroad. Self-employed option: 8% flat tax on gross sales under PHP 3M. Add SSS (3-4.5%), PhilHealth (2.5%), Pag-IBIG (2%). Non-residents: 25% flat.
At a glance

Key Facts

Tax Rate Range
0-35%
Tax Type
Progressive - rate increases with income
Filing Deadline
April 15 (BIR Form 1700/1701)
Introduction

Philippines has 6 progressive brackets from 0% to 35%, with the first PHP 250,000 (~$4,400 USD) completely tax-free—a major benefit for lower earners. The TRAIN Law reforms simplified the system. Employees also pay SSS (3-4.5%), PhilHealth (2.5%), and Pag-IBIG (2%) contributions. A PHP 1,000,000 earner (~$17,500) pays roughly PHP 150,000 income tax (~15%). OFW income is exempt from Philippine tax while working abroad. Self-employed can choose 8% flat tax on gross sales up to PHP 3 million. Non-residents pay 25% flat on Philippine-source income. Filing deadline is April 15. Use our calculator to estimate your Philippine tax liability.

This hub links to every Philippines tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.

Section 01

Philippines Tax Guides

Detailed Philippines tax guides on CountryTaxCalc:

Section 02

Philippines Income Tax Calculator

Philippines's income tax uses 6 tax brackets from 0% to 35% (TRAIN Law). First PHP 250,000 tax-free. SSS 4.5%, PhilHealth 2.5%, Pag-IBIG 2% employee contributions.. Use the calculator to estimate your take-home pay after income tax:

IncomeRate
₱0 - ₱250,0000%
₱250,000 - ₱400,00015%
₱400,000 - ₱800,00020%
₱800,000 - ₱2,000,00025%
₱2,000,000 - ₱8,000,00030%
Over ₱8,000,00035%
Section 03

Related Hubs

Philippines tax connects with these hubs on CountryTaxCalc:

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FAQ

Frequently Asked Questions

What are Philippines' income tax brackets for 2026?

Philippines has 6 brackets under the TRAIN Law: 0% on PHP 0-250,000, 15% on PHP 250,000-400,000, 20% on PHP 400,000-800,000, 25% on PHP 800,000-2,000,000, 30% on PHP 2,000,000-8,000,000, and 35% above PHP 8,000,000. The PHP 250,000 tax-free threshold significantly benefits lower and middle earners.

What mandatory contributions do Filipino employees pay?

Employees pay three mandatory contributions: SSS (Social Security System) at 4.5% of salary capped at PHP 30,000, PhilHealth (health insurance) at 2.5% of salary, and Pag-IBIG Fund (home development) at 2% capped at PHP 100/month. Employers match these contributions. Total employee burden is roughly 9% on moderate salaries.

Is OFW income taxable in the Philippines?

No—Overseas Filipino Workers (OFWs) are exempt from Philippine income tax on earnings while working abroad. This applies regardless of amount earned. However, income from Philippine sources (rental income, local investments) remains taxable. Upon permanent return, all income becomes subject to Philippine tax based on residency rules.

What is the 8% flat tax option for self-employed?

Self-employed individuals and professionals earning up to PHP 3 million gross can elect 8% flat tax on gross receipts instead of graduated rates. This simplifies compliance—no need for detailed expense records. The 8% rate often results in lower tax than graduated rates for those with modest profit margins. Election is made upon registration or at year-end.
Disclaimer:This hub provides general information about Philippines taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official Philippines tax authority or a qualified local tax adviser. This is not tax or legal advice.
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