Tax Calculator Philippines

How this Philippine tax calculator works

Every payslip in the Philippines goes through the same four steps, and this calculator follows them in order:

1. Start with your monthly basic salary (your gross pay before any deduction).
2. Subtract your employee share of SSS, PhilHealth, and Pag-IBIG (HDMF): these three government contributions are deducted from your gross salary BEFORE income tax is computed, because they are non-taxable deductions under the National Internal Revenue Code.
3. What's left is your taxable compensation income. This is the amount the BIR's monthly withholding tax table is applied to.
4. The tax table gives you your withholding tax. Subtract it (along with the three contributions) from your gross salary, and what remains is your net take-home pay.

SSS, PhilHealth, and Pag-IBIG contributions explained

These three government-mandated contributions come out of every regular employee's salary in the Philippines. Each one funds a different program, and each has its own rate and its own floor/ceiling on the salary it applies to.

• SSS (Social Security System): funds retirement, disability, sickness, maternity, and death benefits. The 2026 rate is 15% of your Monthly Salary Credit (MSC), split 10% employer / 5% employee. The MSC ranges from PHP 5,000 to PHP 35,000, so your own SSS deduction is between PHP 250 and PHP 1,750 a month, depending on your salary bracket.
• PhilHealth: funds the national health insurance program under the Universal Health Care Law. The 2026 premium rate is 5% of your monthly basic salary, split equally 2.5% employer / 2.5% employee, with a floor of PHP 10,000 and a ceiling of PHP 100,000 for the computation base.
• Pag-IBIG (HDMF): funds the Home Development Mutual Fund, covering housing loans and a savings program. The employee rate is 1% of monthly compensation up to PHP 1,500, or 2% above that, applied to a salary capped at the PHP 10,000 Max Fund Salary (so the maximum employee share is PHP 200/month).

Worked examples at three salary levels

Here's how the numbers actually play out for three common monthly salary levels in Metro Manila and nationwide. All figures are estimates using 2026 rates and the calculator above; your actual payslip may differ slightly depending on your specific employer's payroll setup.

Notice that at PHP 20,000/month, taxable income after contributions falls below the PHP 20,833 monthly exemption threshold, so no income tax is withheld at all. That's the TRAIN Law's minimum-wage-friendly design: the first roughly PHP 250,000 a year (about PHP 20,833/month) is tax-free.

The official BIR monthly withholding tax table (TRAIN Law)

This is the exact table (Annex "E", Revenue Regulations No. 11-2018) this calculator uses, current for 2026:

Want the full breakdown, the annual version of this table, and a walkthrough of how each bracket is calculated step by step? See our TRAIN Law tax brackets explained guide.

What this calculator does not cover

To keep the numbers accurate and honest, this calculator is scoped to regular monthly compensation income only. It does not (yet) include:

• 13th month pay and other year-end bonuses: use the dedicated 13th month pay calculator, which applies the separate PHP 90,000 tax-exempt ceiling.
• Overtime pay, night-shift differential, or holiday premium pay: these have their own computation rules and are usually itemized separately on a payslip.
• De minimis benefits (small, specifically-listed tax-exempt perks like a rice subsidy or uniform allowance).
• Self-employed, freelance, or mixed-income taxpayers, who can choose between the graduated tax table and an 8% flat tax on gross receipts (a different set of rules entirely).
• Additional exemptions, tax credits, or voluntary/self-employed SSS, PhilHealth, or Pag-IBIG membership types.

Common Philippine payroll terms, explained

If you are new to reading a Philippine payslip, a few recurring terms can be confusing at first. Here is a quick reference:

• Basic salary: your fixed monthly pay before any allowance, overtime, or deduction. This is the figure most of the calculations above start from.
• Gross pay: your total compensation before any deduction, including basic salary plus any regular allowances your employer counts as taxable compensation.
• Taxable income: gross pay minus your SSS, PhilHealth, and Pag-IBIG employee contributions, the smaller figure that withholding tax is actually computed on.
• Net pay / take-home pay: what actually lands in your bank account after every standard deduction. See our full net pay vs gross pay breakdown for more detail.
• Monthly Salary Credit (MSC): the SSS-specific bracketed value (not your exact salary) that your SSS contribution rate is applied to.
• Withholding tax: the portion of your income tax your employer deducts and remits to the BIR on your behalf every payroll period, so you are not left with a large lump-sum bill at year-end.
• Certificate of Compensation (BIR Form 2316): the annual summary your employer issues showing your total compensation, contributions, and tax withheld for the year, useful for loan applications, visa applications, and verifying your own numbers against this calculator.

Why your actual payslip might differ slightly

This calculator is built to match the official BIR tables and 2026 government contribution rates as closely as possible, but a handful of employer-specific and situational factors can cause a small difference between our estimate and your real payslip:

• Your employer may apply the SSS Monthly Salary Credit using the exact official salary-bracket table rather than the nearest-PHP-500 rounding this calculator uses as an approximation.
• Additional taxable allowances (transportation, representation, clothing allowance beyond the tax-exempt de minimis limit) that are part of your specific compensation package are not modeled here.
• Union dues, cooperative contributions, salary loan repayments, or HMO co-payments are company/employee-specific deductions that vary widely and cannot be estimated generically.
• If you are a minimum wage earner, your entire basic salary, holiday pay, overtime pay, night-shift differential, and hazard pay are exempt from income tax under a separate provision; that's a special case this general calculator does not model.