How much income tax comes off your salary? The 2026 BIR tax table and calculator

The first P250,000 a year is tax-free. Type your salary or taxable income to see the tax on the rest, worked out step by step from the BIR's own table.

The BIR income tax table for 2026

Taxable income a year, in pesos.

Taxable income a yearTax
P250,000 or less0%
Over P250,000 to P400,00015% of the amount over P250,000
Over P400,000 to P800,000P22,500 + 20% of the amount over P400,000
Over P800,000 to P2,000,000P102,500 + 25% of the amount over P800,000
Over P2,000,000 to P8,000,000P402,500 + 30% of the amount over P2,000,000
Over P8,000,000P2,202,500 + 35% of the amount over P8,000,000

This is Section 24(A)(2)(a) of the Tax Code as the TRAIN law (RA 10963) amended it, for 2023 onwards, from the Tax Code page on bir.gov.ph. If a table shows 20% and 25% in the first two taxed rows, it's the 2018 to 2022 table. BIR's own Income Tax page still prints that one.

How to compute your income tax, step by step

  1. Add up your gross pay for the year.
  2. Take out what isn't taxed: your SSS, PhilHealth and Pag-IBIG shares, and bonuses and benefits up to P90,000 a year.
  3. What's left is your taxable income. Find its row in the table.
  4. Your tax is the row's fixed amount plus its rate times the part above the row's floor.

Worked example: the tax on a P30,000 monthly salary

You earn P30,000 a month, so P360,000 a year. Your shares come to P2,450 a month (P1,500 for SSS, P750 for PhilHealth and P200 for Pag-IBIG), or P29,400 for the year. Section 32(B)(7)(e) of the Tax Code leaves out up to P90,000 a year of bonuses and benefits, so a P30,000 year-end bonus isn't taxed.

Your taxable income is P360,000 minus P29,400, or P330,600. That's in the 15% row: 15% of P80,600 is P12,090 a year, about P1,007.50 a month.

On our reading of Section 32(B)(7)(f), your whole SSS share counts as a tax-free contribution, including the MPF part above P20,000, so we took all of it out.

Freelancer? The 8% option, and who can take it

If you're purely self-employed or a professional, and your gross sales or receipts and other non-operating income stay within P3,000,000 a year, BIR lets you choose:

Example: P600,000 in gross receipts for the year. P600,000 minus P250,000 is P350,000, and 8% of that is P28,000.

If you also have a salary, BIR's Income Tax page taxes the salary on the table and lets your business income take 8%, with no P250,000 deduction in its worked form. Above P3,000,000, only the graduated rates apply. Which option costs you less depends on your expenses, so check with BIR or a tax professional before you choose.

Why your payslip might be a little different

Your employer takes tax out each payday, and overtime, allowances and unpaid leave move the amount around from month to month, but over the year the tax withheld should match the tax due. If it does and you have one employer, you may not need to file a return yourself: BIR calls it substituted filing.

Questions

How much income tax do I pay on P25,000 a month?

About P313.75 a month. Your SSS, PhilHealth and Pag-IBIG shares come to P2,075 a month, so your taxable income is P275,100 a year, and 15% of the P25,100 above P250,000 is P3,765.

Is the first P250,000 tax-free?

Yes. Taxable income of P250,000 a year or less is taxed at 0%, which is about P20,833 a month.

Do minimum wage earners pay income tax?

No. The Tax Code exempts minimum wage earners, along with their holiday pay, overtime pay, night shift differential and hazard pay.

What is the tax table for 2026?

The same one as since 1 January 2023. No newer schedule is in the Tax Code on bir.gov.ph, read on 7 October 2026.

Do I need to file an income tax return?

Not if you earn only a salary from one employer that withheld the right tax all year, and, if you're married, your spouse qualifies the same way. BIR calls this substituted filing. Freelancers file every quarter on BIR Form 1701Q and once a year on BIR Form 1701.

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This page explains the BIR's tax table and gives no tax advice. Check BIR's page before you rely on it. Sources, read 7 October 2026: