Calculate your income tax, add up your monthly contributions, and find out your net monthly income with this BIR Tax Calculator.

For the computation, the Tax Calculator Philipines 2025 makes use of the SSS Income Tax Table, PhilHealth Contribution Table, and Pag-IBIG Monthly Contribution Table.

Filipino Tax Calculator: What Is It?

Philippine tax calculators are online tools that estimate how much taxes and government contributions are deducted from an employee’s gross salary. A specialized Tax Calculator Philippines, unlike generic calculators, incorporates the country’s specific tax regulations, primarily the Tax Reform for Acceleration and Inclusion (TRAIN) Law, as well as mandatory contributions to government agencies like the Social Security System (SSS), PhilHealth, and Pag-IBIG Fund.

The beauty of such a tool is that it provides an accurate, quick, and transparent estimation of your net pay each month. As a result, you’ll have a clearer picture of your take-home salary, eliminating manual computations and tedious cross-referencing of tax tables.

The BIR Tax Calculator for 2025: How to Use It

• The first step is to enter the total amount of your monthly salary.
• You will see the results below the Calculate button after you click it.

Tax Table for the BIR

The Tax Reform for Acceleration and Inclusion Act (TRAIN Act) also known as the Train Law or Republic Act No. 10963 is probably familiar to you.

There has been a significant reduction in taxes on employee paychecks both in government and non-government sectors since the implementation year.

If you’re wondering how much tax you pay to the Philippines, take a look at this tax table.

Unless the government issues changes, this is the Revised Withholding Tax Table that will take effect on January 1, 2023 and onwards.

DAILY	1	2	3	4	5	6
Salary Range	P685 and below	P685 -P1,095	P1,096 – P2,191	P2,192 – P5,478	P5,479 – P21,917	P21,918 and above
Withholding Tax	0.00	0.00 +15% over P685	P82.19 +20% over P1,096	P356.16 +25% over P2,192	P1,342.47 +30% over P5,479	P6,602.74 +35% over P21,918
WEEKLY	1	2	3	4	5	6
Salary Range	P4,808 and below	P4,808 – P7,691	P7,692 – P15,384	P15,385 – P38,461	P38,462 – P153,845	P153,846 and above
Withholding Tax	0.00	0.00 +15% over P4,808	P576.92 +20% over p7,692	P2,500.00 +25% over p15,385	P9,423.08 +30% over P38,462	P46,346.15 +35% over P153,846
SEMI-MONTHLY	1	2	3	4	5	6
Salary Range	P10,417 and below	P10,417 – P16,666	P16,667 – P33,332	P33,333 – P83,332	P83,333 – P333,332	P333,333 and above
Withholding Tax	0.00	0.00 +15% over P10,417	P1,250.00 +20% over P16,667	P5,416.67 +25% over P33,333	P20,416.67 +30% over P83,333	P100,416.67 +35% over P333,333
MONTHLY	1	2	3	4	5	6
Salary Range	P20,833 and below	P20,833 – P33,332	P33,333 – P66,666	P66,667 – P166,666	P166,667 – P666,666	P666,667 and above
Withholding Tax	0.00	0.00 +15% over P20,833	P2,500.00 +20% over 33,333	P10,833.33 +25% over P66,667	P40,833.33 +30% over P166,667	P200,833.33 +35% over P666,667

Source

Calculating Income Tax

On the basis of the tax table you just saw, you probably think that deducting your monthly salary from your income tax computation is all there is to it.

You are close to that, but how to calculate your income tax requires a specific procedure, which you will learn in this lesson.

Step 1: Calculate Your Total Deductions

Using the calculator, you can find out the total amount you contribute to SSS, PhilHealth, and Pag-IBIG every month. 

Monthly earnings are already known to you.

SSS (or GSIS) contributions, PhilHealth contributions, and Pag-IBIG contributions are deducted from your taxable income.

The following tools will assist you in calculating your monthly contribution:

• SSS Contribution Calculator
• PhilHealth Contribution Calculator
• Pag-IBIG Contribution Calculator

The tool calculates the amounts based on your gross monthly salary after you select your membership type for SSS and PhilHealth.

Following are the deductions based on the image values:

• SSS Contribution: ₱1,125.00
• PhilHealth Contribution: ₱625.00
• Pag-IBIG Contribution: ₱200.00 (This is the amount you’ve entered)

The total of these deductions is ₱2,075.00.

Step 2: Determine Your Taxable Income

Next, the calculator subtracts the total monthly deductions from your monthly gross salary to find your taxable income. This is the amount that will be used to calculate your income tax.

• Monthly Salary: ₱25,000.00
• Total Deductions: ₱2,075.00

Your taxable income would be ₱22,925.00 ($25,000.00 – 2,075.00).

Step 3: Calculate Your Withholding Tax

The calculator then uses the monthly taxable income to find the correct tax bracket from the table you provided. Your taxable income of ₱22,925.00 falls into the “Over ₱20,833 – ₱33,333” bracket.

The formula for this bracket is “0.00 + 15% of the excess over ₱20,833”.

• Excess Taxable Income: ₱22,925.00 – ₱20,833.00 = ₱2,092.00
• Withholding Tax: 15% of ₱2,092.00 = ₱313.80

Step 4: Find Your Estimated Net Pay

Finally, the calculator subtracts the withholding tax and all contributions from your gross salary to give you your estimated monthly take-home pay.

• Gross Salary: ₱25,000.00
• Total Deductions: ₱2,075.00
• Withholding Tax: ₱313.80

Your estimated monthly net pay is ₱22,611.20 ($25,000.00 – $2,075.00 – 313.80).

You can follow these same steps on the calculator by simply entering your own gross monthly salary to see your personal tax breakdown.

Why You Should Use a Tax Calculator

Using an online tax calculator offers a multitude of benefits that go beyond simple convenience.

1. Financial Clarity and Planning

One of the most significant advantages is achieving financial clarity. Many people only see their gross salary and then their final net pay, without understanding the deductions in between. A tax calculator demystifies this process by showing you a detailed breakdown of each deduction. This knowledge is crucial for effective financial planning, budgeting, and setting realistic savings goals.

2. Verifying Your Payslip

Have you ever looked at your payslip and wondered if the numbers were correct? A tax calculator allows you to independently verify the computations made by your employer’s payroll department. If there are any discrepancies, you can approach your HR or accounting department with confidence, backed by your own calculations. This is especially useful for checking things like overtime pay calculator Philippines to ensure that your extra work is being compensated accurately and taxed correctly.

3. Staying Compliant

The Philippine tax laws, especially with the implementation of the TRAIN Law, have changed significantly over the years. Keeping up with the latest tax brackets and contribution rates can be challenging. An up-to-date tax calculator ensures that your computations are based on the current regulations, helping you stay compliant without having to be a tax expert yourself.

Understanding Your Deductions in Detail

Your gross salary isn’t just subject to income tax; it’s also reduced by mandatory government contributions that serve as social safety nets.

1. SSS (Social Security System)

The SSS provides benefits for sickness, maternity, disability, retirement, and death. Your contribution is based on your Monthly Salary Credit (MSC), which is a range tied to your actual monthly earnings. A detailed SSS contribution table is used to determine the exact amount, and it’s a key part of the calculation. Knowing how to get SSS contribution information is vital, and a good calculator simplifies this process by doing the lookup for you.

2. PhilHealth (Philippine Health Insurance Corporation)

PhilHealth contributions are pooled to provide universal healthcare coverage for Filipinos. The contribution rate is a percentage of your monthly salary, with a set floor and ceiling. The premium is typically shared between the employer and the employee.

3. Pag-IBIG (Home Development Mutual Fund)

Pag-IBIG serves as a national savings program that offers housing loans and other benefits. The contribution rate is set at a small percentage of your income, with a maximum monthly contribution amount. A standard contribution of ₱100 is often used for most employed individuals, but the calculator should allow for customization if your contribution is higher.

The Role of the TRAIN Law in Your Paycheck

The TRAIN Law, officially known as Republic Act No. 10963, introduced a new progressive tax schedule that took effect in two phases: one in 2018 and another in 2023. This law aims to simplify the tax system and provide tax relief to a majority of individual income earners.

The key changes:

• Tax Exemption for Low Earners: Individuals with an annual taxable income of ₱250,000 or less are exempt from paying income tax. This is a significant relief for minimum wage earners.
• Revised Tax Brackets: The old tax brackets were replaced with new ones, featuring lower rates for most income levels.
• Bonus Exemption: The tax-exempt threshold for the 13th-month pay and other bonuses was increased from ₱82,000 to ₱90,000.

These changes make a modern tax calculator an absolute necessity for accurate financial planning, as older calculators will no longer provide correct results.

Preparing Your Income Tax Return (ITR)

While a tax calculator is not a substitute for professional tax advice or filing your actual returns, it can be a powerful tool for preparation. By using the calculator throughout the year, you can estimate your total tax liability, ensuring you don’t face a shocking amount to pay come tax season.

For those who are self-employed or have mixed income, a tax calculator can help you prepare the necessary figures for your income tax return sample philippines forms. It simplifies the process of getting a rough estimate before you even begin to fill out the official documents. With the rise of digital services, having a reliable calculator is the first step toward streamlining processes like pay BIR online.

Conclusion: Take Control of Your Finances

In a world where financial literacy is more important than ever, a powerful tool like a Philippine tax calculator is an essential resource. It provides transparency, empowers you to plan your finances with confidence, and helps you stay on top of your obligations. By using our tool, you’re not just crunching numbers; you’re taking an active role in managing your financial future.

We encourage you to use our Tax Calculator Philippines to explore your take-home pay, understand your deductions, and take the first step toward better financial health. Try it out now and see the difference for yourself!