How this calculator works
Enter your gross monthly salary — your pay before any deductions. The calculator subtracts your mandatory government contributions first (SSS, PhilHealth, Pag-IBIG), then applies the BIR withholding tax table to what's left, called your taxable income. What remains is your net take-home pay.
2026 SSS, PhilHealth & Pag-IBIG rates used
| Contribution | Employee rate | Coverage |
|---|---|---|
| SSS | 5% of monthly salary credit | ₱5,000 – ₱35,000 salary credit range |
| PhilHealth | 2.5% of basic salary | ₱10,000 – ₱100,000 salary range |
| Pag-IBIG | 1–2% of salary | Capped at ₱10,000 salary base |
2026 BIR monthly withholding tax table
| Monthly taxable income | Tax rate |
|---|---|
| ₱0 – ₱20,833 | 0% (exempt) |
| ₱20,833 – ₱33,332 | 15% of excess over ₱20,833 |
| ₱33,333 – ₱66,666 | ₱1,875 + 20% of excess over ₱33,333 |
| ₱66,667 – ₱166,666 | ₱8,541.80 + 25% of excess over ₱66,667 |
| ₱166,667 – ₱666,666 | ₱33,541.80 + 30% of excess over ₱166,667 |
| Over ₱666,667 | ₱183,541.80 + 35% of excess over ₱666,667 |
This schedule comes from the TRAIN Law (RA 10963), effective January 2023 onward, and remains unchanged for 2026.
How TRAIN Law withholding tax is actually calculated
The Tax Reform for Acceleration and Inclusion (TRAIN) Law, officially Republic Act 10963, restructured the Philippine personal income tax system starting January 2018, with the current bracket amounts in effect since January 2023. Your employer withholds tax from every payslip using this table, so that by year-end you've already paid most or all of what you owe — this is why it's called "withholding" tax rather than a separate bill you pay later.
The calculation isn't a flat percentage of your whole salary. Instead, it's progressive: only the portion of your income that falls inside a higher bracket gets taxed at that bracket's rate. Everyone's first ₱20,833 of monthly taxable income is completely tax-exempt, regardless of how much they earn overall. Income above that is taxed in slices, which is why the table shows a fixed peso amount plus a percentage of the "excess" over each threshold — the fixed amount already accounts for all the tax owed on the brackets below it.
Taxable income vs. gross salary
A common point of confusion: withholding tax is never calculated on your full gross salary. It's calculated on your taxable income, which is your gross salary minus mandatory government contributions (SSS, PhilHealth, Pag-IBIG) and any non-taxable allowances or de minimis benefits you receive. This is exactly why this calculator subtracts SSS, PhilHealth, and Pag-IBIG before applying the tax table — skipping that step would overstate your tax and understate your real take-home pay.
Taxable vs. non-taxable allowances
Not everything on a payslip counts as taxable compensation. The BIR allows certain "de minimis" benefits — small, specific allowances — to be excluded from taxable income up to set limits, such as rice subsidies, uniform allowances, and modest medical or laundry allowances. Amounts within the prescribed limits are non-taxable; anything given above those limits typically gets added back into taxable income. This calculator assumes a standard salary structure without special allowances, so employees receiving substantial non-taxable benefits may see a slightly lower actual tax than what's shown here.
Example computations
A better way to see how the brackets work is to walk through a few salary levels directly:
₱25,000 monthly gross: after typical SSS, PhilHealth, and Pag-IBIG deductions, taxable income lands around ₱23,700 — just inside the second bracket. Only the amount over ₱20,833 is taxed, at 15%, resulting in a modest monthly withholding tax of roughly ₱430.
₱50,000 monthly gross: taxable income after deductions is roughly ₱47,600, which falls in the third bracket (₱33,333–₱66,666). Tax here is ₱1,875 plus 20% of the amount over ₱33,333 — working out to around ₱4,730 in monthly withholding tax.
₱100,000 monthly gross: taxable income after deductions is roughly ₱95,700, placing it in the fourth bracket (₱66,667–₱166,666). Tax is ₱8,541.80 plus 25% of the excess over ₱66,667 — landing around ₱15,800 in monthly withholding tax.
Notice how the effective tax rate — the actual percentage of gross salary paid in tax — rises gradually as income increases, rather than jumping sharply. That's the practical effect of a progressive, bracket-based system.