Philippines
Asia
The Philippines has a graduated income tax system with rates from 0% to 35%, a 12% VAT on most goods and services, and various withholding taxes. The Bureau of Internal Revenue (BIR) administers the tax system. The tax year follows the calendar year.
Philippines Tax Cheatsheet (Calendar Year (January 1 – December 31))
Key tax metrics at a glance for residents and expats.
How Taxation Works in Philippines
Understand the basics of Philippines's tax system, who pays tax, and how rates apply to individuals and businesses.
Tax System
The Philippines uses a self-assessment tax system where taxpayers calculate and report their own tax obligations. The BIR administers tax collection and enforcement. Tax returns are filed annually, and taxpayers must pay their tax liability by the deadline. Withholding tax is a key mechanism for collecting tax from compensation.
Residents
Resident citizens are taxed on worldwide income. Resident aliens are taxed on Philippine-sourced income. Non-resident aliens are taxed only on Philippine-sourced income. Employers withhold tax from employee compensation.
Non-Residents
Tax residents include resident citizens and resident aliens present in the Philippines for 183 days or more in a calendar year. Residents are taxed on worldwide income. Non-residents are taxed only on Philippine-sourced income.
Individuals
The Philippines has a graduated income tax system with rates from 0% to 35%. The first PHP 250,000 is exempt from tax. Various deductions and exemptions are available.
Businesses
Corporate tax is 25% for domestic corporations and 30% for foreign corporations. VAT is 12% on most goods and services. Minimum corporate income tax of 1% applies to corporations with net losses.
Tax Residency
The Philippines taxes resident citizens on worldwide income and resident aliens on Philippine-sourced income. Non-resident aliens are taxed only on Philippine-sourced income.
Graduated Tax Rates
The Philippines uses graduated income tax rates from 0% to 35%. The first PHP 250,000 is exempt from tax.
Withholding Tax
Withholding tax on compensation is based on the employer's computation. Employers deduct and remit tax monthly.
TRAIN Tax Reform
The Tax Reform for Acceleration and Inclusion (TRAIN) law rationalized VAT and enhanced the withholding tax system.
Important Tax Information
Key facts about Philippines's tax system to help you understand your obligations.
Tax Year
Calendar Year (January 1 – December 31)
Filing Deadline
April 15 (individuals and corporations)
Tax Authority
Currency
PHP
Residency Rules
Tax residents include resident citizens and resident aliens present in the Philippines for 183 days or more in a calendar year. Residents are taxed on worldwide income. Non-residents are taxed only on Philippine-sourced income.
Employer Withholding
Philippine employers withhold tax on employee compensation based on BIR withholding tax tables (alphalist). Employers deduct and remit withholding tax monthly. The withheld amount is credited against the employee's annual tax liability when filing the annual return.
Payment Deadline
Tax payable by April 15; monthly withholding remitted by the 25th of each month
Tax Brackets & Rates
Calendar Year (January 1 – December 31) income tax brackets for Philippines. Tax is calculated progressively — higher portions of income are taxed at higher rates.
Progressive Tax
Higher portions of income are taxed at higher rates. Only the income within each bracket is taxed at that bracket's rate.
Marginal Rate
The rate applied to your last dollar of income. It determines the tax on your next dollar earned.
Effective Rate
The average rate across all your income. Total tax divided by total income gives your true tax burden.
| Bracket | Rate | Threshold | Notes |
|---|---|---|---|
| 0% | 0% | Up to PHP 250,000 | Annual taxable income |
| 20% | 20% | PHP 250,001 – PHP 400,000 | Annual taxable income |
| 25% | 25% | PHP 400,001 – PHP 800,000 | Annual taxable income |
| 30% | 30% | PHP 800,001 – PHP 2,000,000 | Annual taxable income |
| 32% | 32% | PHP 2,000,001 – PHP 8,000,000 | Annual taxable income |
| 35% | 35% | Above PHP 8,000,000 | Annual taxable income |
Common Deductions in Philippines
Deductions reduce your taxable income. Here are the most common deductions available to Philippines taxpayers.
Standard Deduction
PHP 250,000 annual tax-free threshold for individuals. Additional deductions for SSS/GSIS, PhilHealth, Pag-IBIG, medical expenses, and charitable contributions.
Personal Exemption
PHP 250,000 annual tax-free threshold for individuals.
SSS/GSIS Contributions
Contributions to Social Security System (SSS) or Government Service Insurance System (GSIS) are deductible.
PhilHealth Contributions
Philippine Health Insurance Corporation contributions are deductible.
Pag-IBIG Contributions
Pag-IBIG Fund contributions are deductible.
Medical Expenses
Deduction for medical expenses exceeding 10% of gross income.
Charitable Contributions
Deduction for donations to approved charitable institutions.
Tax Credits in Philippines
Tax credits directly reduce your tax liability. Here are the major credits available in Philippines.
Withholding Tax Credit
Credit for withholding tax deducted at source on compensation and other income.
Tax Treaty Credit
Credit for taxes paid in other countries under tax treaty provisions.
Who Should Use This Calculator
Our Philippines tax calculators are designed for a wide range of users. See if they match your situation.
Employees
Employed individuals receiving compensation income who want to estimate their annual tax after withholding tax credits.
Freelancers & Contractors
Self-employed professionals, contractors, and gig workers who receive professional fees subject to withholding tax.
Business Owners
Business owners and corporations who need to estimate corporate income tax at 25% and VAT obligations at 12%.
Expats
Foreign employees and expats working in the Philippines who need to understand their tax residency status and obligations on Philippine-sourced income.
How to Use the Philippines Tax Calculator
Get an accurate tax estimate in just a few steps. Here is how to use our calculator effectively.
Enter Income
Input your annual compensation income, business income, or other taxable income sources.
Apply Deductions
Enter applicable deductions such as SSS/GSIS, PhilHealth, Pag-IBIG contributions, and other allowable expenses.
Choose Tax Year
Select the appropriate tax year to apply the correct graduated tax rates and thresholds.
Calculate
Click Calculate to see your taxable income, tax liability, and effective tax rate under the graduated system.
Review & File
Review your results and compare against your withholding tax credits to estimate any refund or balance due.
Frequently Asked Questions
Quick answers to common questions about Philippines taxation, filing requirements, and using our calculators.
What is the income tax rate in the Philippines?
Graduated rates from 0% to 35% based on annual taxable income. The first PHP 250,000 is exempt.
What is the VAT rate?
12% standard rate on most goods and services.
Who is a tax resident in the Philippines?
A resident citizen or a resident alien who is present in the Philippines for 183 days or more in a calendar year.
What is the corporate tax rate?
25% for domestic corporations. 30% for foreign corporations deriving income from Philippines sources.
When is the tax filing deadline?
April 15th for calendar year taxpayers.
Explore Philippines Tax
Trust & Transparency
Last Updated
2025-06-15
Educational Disclaimer
The tax information and calculators on this page are for educational and informational purposes only. They do not constitute professional tax advice. Tax laws are subject to change. Always consult a qualified tax professional for advice specific to your situation.
Calculation Methodology
Tax calculations follow the Philippine Tax Code and BIR regulations. Graduated rates are applied to taxable income after deductions and exemptions. VAT is calculated on the taxable value of goods and services at 12%.
Data Sources
- Bureau of Internal Revenue (BIR) Philippines
- TRAIN Tax Reform Law
- BIR Revenue Regulations
Privacy-First
All calculations are performed locally in your browser. No personal data is collected, stored, or transmitted to any server. Your financial information never leaves your device.
Official Authority
For the most accurate and up-to-date information, visit the official government tax authority:Bureau of Internal Revenue (BIR)
Country Tax Overview
