Philippines Income Tax Calculator — TRAIN Law 2023
Calculate Philippine income tax under the TRAIN Law (Republic Act 10963) graduated rates effective from 2023. Enter your annual compensation income and get your annual and monthly tax due, take-home pay, marginal rate and effective rate.
PHP
Graduated income tax under the TRAIN Law (2023 rates)
10.42 %
effective rateNet income
89.6%
Income tax
10.4%
- 1
Bracket base tax
22,500Cumulative tax on income up to ₱400,000 from lower brackets. - 2
Marginal tax (20% on slice above ₱400,000)
20% × (600,000 − 400,000) = 40,000 - 3
Annual income tax due
22,500 + 40,000 = 62,500
How does this calculator work?
Philippine income tax under the TRAIN Law (from 2023) uses six graduated brackets from 0% to 35%. Compensation up to ₱250,000 is exempt. Enter annual taxable compensation to get annual and monthly tax, take-home pay and effective rate. Figures are TRAIN Law 2023 estimates.
Formula
How this is calculated
Republic Act 10963 (Tax Reform for Acceleration and Inclusion — TRAIN Law) restructured Philippine personal income tax rates. From 1 January 2023 the final graduated schedule applies: income up to ₱250,000 is exempt; 15% on ₱250,001–₱400,000; 20% on ₱400,001–₱800,000; 25% on ₱800,001–₱2,000,000; 30% on ₱2,000,001–₱8,000,000; and 35% on income above ₱8,000,000. Only the portion within each bracket is taxed at that rate.
For compensation income earners (employees), the employer withholds the tax monthly through the creditable withholding tax (CWT) system. An employee with purely compensation income from one employer typically does not need to file an annual income tax return (substituted filing). Self-employed and mixed-income individuals face additional rules and must file quarterly and annual returns.
This calculator covers only the basic graduated income tax liability. It does not include 13th-month pay (first ₱90,000 is tax-exempt), de minimis benefits, SSS/PhilHealth/Pag-IBIG contributions (deductible from gross for tax purposes), or the optional 8% flat tax for self-employed individuals earning ≤₱3 million. Verify all figures with the Bureau of Internal Revenue (BIR) or a licensed tax professional.
Frequently asked questions
From 2023: 0% on income up to ₱250,000; 15% on ₱250,001–₱400,000; 20% on ₱400,001–₱800,000; 25% on ₱800,001–₱2,000,000; 30% on ₱2,000,001–₱8,000,000; 35% above ₱8,000,000. These are lower than the rates that applied in 2018–2022.
The first ₱90,000 of 13th-month pay and other bonuses is exempt from income tax. Any amount above ₱90,000 is added to regular compensation and taxed at the applicable graduated rate. This exemption is not factored into this calculator.
Self-employed individuals and professionals earning gross receipts of ₱3 million or less per year may opt for the flat 8% tax on gross receipts in lieu of the graduated rates and percentage tax. This calculator covers the graduated rates for compensation income earners only.
Also known as
TG we-Calculate Editorial Team. (2026). Philippines Income Tax Calculator — TRAIN Law 2023 [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/income-tax-philippines-calculator
TG we-Calculate Editorial Team. "Philippines Income Tax Calculator — TRAIN Law 2023." TG we-Calculate. 2026. https://we-calculate.com/calculator/income-tax-philippines-calculator.
TG we-Calculate Editorial Team, "Philippines Income Tax Calculator — TRAIN Law 2023," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/income-tax-philippines-calculator
@misc{wecalculate_income_tax_philippines_calculator, title = {Philippines Income Tax Calculator — TRAIN Law 2023}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/income-tax-philippines-calculator}}, year = {2026}, note = {TG we-Calculate} }
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