BIR Income Tax Calculator Philippines (Updated 2026)

BIR Income Tax Calculator Philippines
Your estimated tax will appear here.
⚠️ This BIR Income Tax Calculator is for estimation purposes only. Actual tax payable may vary based on current Philippine BIR regulations.

BIR Income Tax Calculator Philippines (Updated 2026)

Managing taxes in the Philippines can feel overwhelming, especially as tax rules, contribution limits, and compliance requirements change over time. Whether you are a salaried employee, a freelancer handling multiple clients, or a business owner managing cash flow, knowing your exact tax liability is critical.
That’s where the BIR Income Tax Calculator Philippines (Updated 2026) becomes a reliable and practical solution for accurate income planning.

This advanced tax calculator is designed according to the latest TRAIN Law tax brackets and automatically considers mandatory deductions such as SSS, PhilHealth, and Pag-IBIG. It also supports VAT and Non-VAT status, making it suitable for employees, freelancers, and business owners across the Philippines.

💡 Why You Need an Updated BIR Income Tax Calculator ?

Philippine tax laws do not remain static. Updates under the TRAIN Law directly affect your withholding tax, contributions, and take-home pay.

Using an updated income tax calculator Philippines helps you:

  • ✅ Apply the latest TRAIN Law tax brackets
  • ✅ Calculate correct SSS, PhilHealth, and Pag-IBIG deductions
  • ✅ Handle VAT vs Non-VAT income correctly
  • ✅ Compare and apply the 8% flat tax option or the graduated income tax rates as permitted under Philippine tax rules.
  • ✅ Avoid overpayment or underpayment during filing season

Many users also pair this tool with a withholding tax calculator Philippines to verify employer deductions.

📊 2026 BIR Income Tax Table (TRAIN Law)

Annual Taxable IncomeIncome Tax Rate
₱0 – ₱250,0000%
₱250,001 – ₱400,00015% of excess over ₱250,000
₱400,001 – ₱800,000Annual income from ₱400,001 to ₱800,000 is taxed at a base amount of ₱22,500 plus 20% of the amount exceeding ₱400,000.
₱800,001 – ₱2,000,000₱102,500 + 25For earnings between ₱800,001 and ₱2,000,000, the tax due starts at ₱102,500 with an additional 25% applied to income above ₱800,000.
₱2,000,001 – ₱8,000,000₱402,500 + 30% of excess over ₱2,000,000
Over ₱8,000,000₱2,202,500 + 35% of excess

Effective January 2026.

🧮 How to Use the BIR Income Tax Calculator Philippines ?

This tool works as a complete income calculator Philippines users can rely on.

Steps:

  1. Enter your monthly or annual gross income
  2. Select your employment type:
    • Employee
    • Freelancer
    • Self-Employed / Business
  3. Choose your VAT status:
    • VAT-Registered
    • Non-VAT
  4. If Non-VAT and income is below ₱3,000,000, select:
    • 8% flat tax, or
    • Graduated income tax rates
  5. The calculator automatically deducts:
    • SSS
    • PhilHealth
    • Pag-IBIG
    • BIR income tax
  6. Instantly view:
    • Total tax due
    • Annual net income
    • Monthly take-home pay

🧾 Example Computation (2026)

Monthly Salary: ₱40,000

Step 1 – Annual Income
₱40,000 × 12 = ₱480,000

Step 2 – Contributions
SSS, PhilHealth, Pag-IBIG ≈ ₱7,800/month
₱7,800 × 12 = ₱93,600

Taxable Income
₱480,000 – ₱93,600 = ₱386,400

Step 3 – Income Tax
Falls under ₱250,001 – ₱400,000
Tax ≈ 15% of excess ≈ ₱20,000

Step 4 – Net Income
₱480,000 – ₱93,600 – ₱20,000 = ₱366,400 annually
≈ ₱30,533 per month

🧾 VAT vs Non-VAT Tax Treatment (Important)

Understanding VAT status is critical for freelancers and businesses.

  • VAT-Registered taxpayers
    • Must use graduated income tax rates
    • Cannot opt for the 8% flat tax
  • Non-VAT taxpayers (below ₱3,000,000 annual income)
    • May choose between:
      • 8% flat tax, or
      • Graduated income tax rates

The calculator automatically restricts invalid selections based on VAT status.

⚖️ Freelancer & Business Tax Computation

Freelancers and self-employed professionals can use this calculator as a freelancer tax calculator Philippines or business tax calculator Philippines.

It supports:

  • Gross income computation
  • Allowable expense deductions
  • 8% flat tax (Non-VAT only)
  • Graduated tax rates
  • Annual and quarterly estimates

This helps in planning cash flow and avoiding BIR penalties.

💰 Taxable vs Non-Taxable Income

Income TypeTaxable
Basic Salary✅ Yes
13th Month Pay (up to ₱90,000)❌ No
Overtime & Night Differential✅ Yes
De Minimis Benefits❌ No
Pag-IBIG Loan Proceeds❌ No

🏦 Other Common Philippine Tax Calculations

For other scenarios, Filipinos often use-

FAQs

Q1. How often are BIR tax tables updated?
BIR tax rates are revised periodically, mainly after updates to the TRAIN Law, with the 2026 figures reflecting the most recent changes.

Q2. Is the 13th month pay taxable?
Only if it exceeds ₱90,000 in total for the year.

Q3. How can I check if my employer remits the correct tax?
Ask for your BIR Form 2316 (Certificate of Compensation and Tax Withheld).

Q4. What happens if I overpay my taxes?
You can apply for a tax refund or credit by BIR.

Q5. Are freelancers required to register with BIR?
Yes. Freelancers need to get a Certificate of Registration (Form 2303) and file quarterly taxes.

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