Free Philippines Income Tax Calculator

Understanding your take-home pay in the Philippines requires more than just a glance at your salary. The Bureau of Internal Revenue (BIR) mandates that qualified earners pay income tax, but only after deducting mandatory contributions to SSS, PhilHealth, and Pag‑IBIG. The Philippines Income Tax Calculator – a free BIR tax calculator online – handles all these steps automatically. Whether you are employed or self‑employed, this tool computes your taxable income, applies the current revised withholding tax table, and shows your net pay after deductions. It functions as both a Withholding Tax Calculator Philippines and a Net Pay Calculator Philippines, making salary planning straightforward.

Mandatory Benefit Contributions

The first step is to determine how much of your gross income goes to three statutory funds. These contributions are non‑taxable, so they are subtracted from your monthly salary before any income tax is computed.

SSS Contributions

The Social Security System (SSS) provides insurance and loan benefits. For employed individuals in 2023, the employee share is 4.5 % of the applicable Monthly Salary Credit (MSC). The table below maps each compensation range to the MSC and the corresponding flat contribution.

Compensation Range (PHP)	Monthly Salary Credit (MSC) (PHP)	Employee Contribution (PHP)
Below 4,250.00	4,000.00	180.00
4,250.00 – 4,749.99	4,500.00	202.50
4,750.00 – 5,249.99	5,000.00	225.00
5,250.00 – 5,749.99	5,500.00	247.50
5,750.00 – 6,249.99	6,000.00	270.00
6,250.00 – 6,749.99	6,500.00	292.50
6,750.00 – 7,249.99	7,000.00	315.00
7,250.00 – 7,749.99	7,500.00	337.50
7,750.00 – 8,249.99	8,000.00	360.00
8,250.00 – 8,749.99	8,500.00	382.50
8,750.00 – 9,249.99	9,000.00	405.00
9,250.00 – 9,749.99	9,500.00	427.50
9,750.00 – 10,249.99	10,000.00	450.00
10,250.00 – 10,749.99	10,500.00	472.50
10,750.00 – 11,249.99	11,000.00	495.00
11,250.00 – 11,749.99	11,500.00	517.50
11,750.00 – 12,249.99	12,000.00	540.00
12,250.00 – 12,749.99	12,500.00	562.50
12,750.00 – 13,249.99	13,000.00	585.00
13,250.00 – 13,749.99	13,500.00	607.50
13,750.00 – 14,249.99	14,000.00	630.00
14,250.00 – 14,749.99	14,500.00	652.50
14,750.00 – 15,249.99	15,000.00	675.00
15,250.00 – 15,749.99	15,500.00	697.50
15,750.00 – 16,249.99	16,000.00	720.00
16,250.00 – 16,749.99	16,500.00	742.50
16,750.00 – 17,249.99	17,000.00	765.00
17,250.00 – 17,749.99	17,500.00	787.50
17,750.00 – 18,249.99	18,000.00	810.00
18,250.00 – 18,749.99	18,500.00	832.50
18,750.00 – 19,249.99	19,000.00	855.00
19,250.00 – 19,749.99	19,500.00	877.50
19,750.00 – 20,249.99	20,000.00	900.00
20,250.00 – 20,749.99	20,500.00	922.50
20,750.00 – 21,249.99	21,000.00	945.00
21,250.00 – 21,749.99	21,500.00	967.50
21,750.00 – 22,249.99	22,000.00	990.00
22,250.00 – 22,749.99	22,500.00	1,012.50
22,750.00 – 23,249.99	23,000.00	1,035.00
23,250.00 – 23,749.99	23,500.00	1,057.50
23,750.00 – 24,249.99	24,000.00	1,080.00
24,250.00 – 24,749.99	24,500.00	1,102.50
24,750.00 – 25,249.99	25,000.00	1,125.00
25,250.00 – 25,749.99	25,500.00	1,147.50
25,750.00 – 26,249.99	26,000.00	1,170.00
26,250.00 – 26,749.99	26,500.00	1,192.50
26,750.00 – 27,249.99	27,000.00	1,215.00
27,250.00 – 27,749.99	27,500.00	1,237.50
27,750.00 – 28,249.99	28,000.00	1,260.00
28,250.00 – 28,749.99	28,500.00	1,282.50
28,750.00 – 29,249.99	29,000.00	1,305.00
29,250.00 – 29,749.99	29,500.00	1,327.50
29,750.00 and above	30,000.00	1,350.00

Self‑employed individuals contribute 14 % of the MSC plus an Employees’ Compensation (EC) fee. The EC is PHP 10 for monthly incomes below PHP 14,750 and PHP 30 for incomes of PHP 14,750 or more. In LaTeX:

$$\text{SSS contribution} = 0.14 \times \text{MSC} + \text{EC}$$

If your MSC exceeds PHP 20,000, a portion of the contribution goes to the compulsory Worker’s Investment and Savings Program (WISP). Visit the SSS website for details.

PhilHealth Contributions

The Philippine Health Insurance Corporation (PhilHealth) updates its premium rate and salary ceiling every few years. The table summarises the rules from 2021 to 2025.

Year	Monthly Basic Salary (PHP)	Premium Rate	Monthly Premium (PHP)
2021	10,000.00	3.50%	350.00
	10,000.01 – 69,999.99	3.50%	350.00 – 2,450.00
	70,000.00	3.50%	2,450.00
2022	10,000.00	4.00%	400.00
	10,000.01 – 79,999.99	4.00%	400.00 – 3,200.00
	80,000.00	4.00%	3,200.00
2023	10,000.00	4.50%	450.00
	10,000.01 – 89,999.99	4.50%	450.00 – 4,050.00
	90,000.00	4.50%	4,050.00
2024–2025	10,000.00	5.00%	500.00
	10,000.01 – 99,999.99	5.00%	500.00 – 5,000.00
	100,000.00	5.00%	5,000.00

For company employees, the monthly premium is split equally between the employer and employee. Self‑employed individuals pay the entire premium themselves.

Pag‑IBIG Contributions

The Home Development Mutual Fund (Pag‑IBIG) uses a simple two‑tier rate.

Monthly Compensation (PHP)	Employee Share	Employer Share
1,000.00 – 1,500.00	1%	2%
Above 1,500.00	2%	2%

The maximum employee share is PHP 100, reached when the monthly compensation is at least PHP 5,000 (since 2 % of 5,000 = 100). The employer share is also capped at PHP 100. Therefore, a self‑employed worker earning PHP 5,000 or more pays PHP 200 per month (employee share + employer share).

Total Contributions

Add your SSS, PhilHealth, and Pag‑IBIG shares together. For both employed and self‑employed individuals, this sum is subtracted from gross monthly income to obtain the taxable income – the base on which income tax is calculated.

Applying the BIR Withholding Tax Table

The BIR publishes a Revised Withholding Tax Table that shows how much tax to deduct per month. The key variables are:

• FT: fixed tax amount (PHP) for the bracket
• CL: compensation level (PHP) – the threshold for the bracket
• rate: tax rate applicable above CL

Compensation Range (PHP)	Fixed Tax (FT) (PHP)	Compensation Level (CL) (PHP)	Rate
20,833.00 and below	0.00	–	0%
20,833.01 – 33,332.00	0.00	20,833.00	15%
33,333.00 – 66,666.00	1,875.00	33,333.00	20%
66,667.00 – 166,666.00	8,541.80	66,667.00	25%
166,667.00 – 666,666.00	33,541.80	166,667.00	30%
666,667.00 and above	183,541.80	666,667.00	35%

The withholding tax (WT) for a given taxable income $TI$ is:

$$WT = FT + (TI - CL) \times rate$$

Worked Example: PHP 40,000 Monthly Salary

Consider a company employee earning PHP 40,000.00 per month.

1. Benefit deductions

   • SSS contribution: PHP 1,350.00 (from the table, range 29,750 and above)
   • PhilHealth contribution: PHP 1,000.00 (4.5 % rate on middle portion)
   • Pag‑IBIG contribution: PHP 100.00 (2 % of 5,000, capped)
     Total contributions = PHP 2,450.00

2. Taxable income

   $$40,000.00 - 2,450.00 = 37,550.00$$

3. Locate the bracket
   PHP 37,550.00 falls in the 33,333.00 – 66,666.00 range.
   FT = 1,875.00, CL = 33,333.00, rate = 20 % (0.20).

4. Withholding tax

   $$WT = 1,875.00 + (37,550.00 - 33,333.00) \times 0.20 = 1,875.00 + 842.40 = 2,718.40$$

5. Net pay after tax only

   $$40,000.00 - 2,718.40 = 37,281.60$$

6. Total deductions (contributions + tax)

   $$2,450.00 + 2,718.40 = 5,168.40$$

7. Take‑home pay after all deductions

   $$40,000.00 - 5,168.40 = 34,831.60$$

If you are paid semi‑monthly, these amounts can be halved. However, because some employers split the contribution deductions unevenly between pay dates (e.g., SSS on the first pay, PhilHealth on the second), you may need to recalculate the semi‑monthly taxable income using the same table for a more precise tax figure.

Using the Calculator

The Philippine Income Tax Calculator (also a BIR Tax Calculator Philippines, SSS PhilHealth Pag‑IBIG Calculator, Net Pay Calculator Philippines, and Withholding Tax Calculator Philippines) puts all these steps into a single free online tool. Choose your employment status, enter your gross monthly income, and instantly receive your taxable income, withholding tax, total deductions, and net pay. This eliminates manual look‑ups and arithmetic, giving you an accurate picture of your monthly finances.