The Philippines taxes its resident citizens on their worldwide income. Non-resident citizens and aliens, whether or not resident in the Philippines, are taxed only on income from sources within the Philippines.
Rates of tax on income of aliens, resident or not, depend on the nature of their income (i.e. compensation income, income subject to final tax, or other income).
Compensation tax rates
For resident aliens and non-resident aliens doing business and receiving compensation income, the tax rates are as follows:
Beginning 1 January 2023:
| Taxable income (PHP) | Tax on column 1 (PHP) | Tax on excess (%) |
| Over | Not over |
| 0 | 250,000 | - | 0 |
| 250,000 | 400,000 | - | 15 |
| 400,000 | 800,000 | 22,500 | 20 |
| 800,000 | 2,000,000 | 102,500 | 25 |
| 2,000,000 | 8,000,000 | 402,500 | 30 |
| 8,000,000 | | 2,202,500 | 35 |
Fringe benefits tax (FBT)
Fringe benefits furnished to managerial and supervisory-level employees by the employer are subject to a final FBT of 35%* (in general) on the grossed-up monetary value of the benefits. Managerial employees are those who may mandate and execute management policies to hire, transfer, suspend, lay off, recall, discharge, assign, or discipline employees. Supervisory employees are those who effectively recommend such managerial actions if the exercise of authority on behalf of the employer is not merely routine or clerical in nature but requires the use of independent judgement. The FBT is a final tax payable on a calendar quarterly basis by the employer and deductible as part of fringe benefit expense. Benefits subjected to FBT are no longerincluded in the employees’ taxable income. See the Income determination section for a description of fringe benefits for FBT purposes.
* 25% for non-resident alien not engaged in trade or business.
Tax rates for income subject to final tax
For resident and non-resident aliens engaged in trade or business in the Philippines, the maximum rate on income subject to final tax (usually passive investment income) is 20%. For non-resident aliens not engaged in trade or business in the Philippines, the rate is a flat 25%. See Capital gains and investment income in the Income determination section for more information.
Tax rates for business income
An individual, whether citizen or resident alien, who is self-employed or practices a profession, is also subject to the graduated income tax rates above.
However, an individual who has gross sales/receipts and other non-operating income not exceeding the VAT threshold (which is currently pegged at PHP 3 million) may opt to be taxed either at:
- 8% tax on gross sales/receipts and other non-operating income in excess of PHP 250,000 in lieu of the graduated income tax rates and percentage tax (business tax), or
- the graduated tax rates.
Business income subjected to graduated tax rates shall also be subject to business tax (i.e. 12% VAT or 1%* percentage tax, as applicable).
* The 1% percentage tax shall only be applied from 1 July 2020 until 30 June 2023. Starting 1 July 2023, the rate shall revert to 3%.
FAQs
Tax rates. Net taxable income of citizens, resident aliens, and NRAETBs are taxed at graduated rates ranging from 0 percent to 35 percent effective 1 January 2018. The maximum rate is currently 35 percent on income earned over 8,000,000 Philippine pesos (PHP).
How much is personal income tax in Philippines? ›
Income Tax Rate Table in 2023
| Annual Income | Tax Rate |
|---|
| PHP 250,000 and below | None (0%) |
| Above PHP 250,000 to PHP 400,000 | 15% of the excess over PHP 250,000 |
| Above PHP 400,000 to PHP 800,000 | PHP 22,500 + 20% of the excess over PHP 400,000 |
| Above PHP 800,000 to PHP 2,000,000 | PHP 102,500 +25% of the excess over PHP 800,000 |
2 more rowsPhilippines Income Tax Rates In 2024
Individuals earning an annual taxable income of up to 250,000 PHP are exempt from taxes while those making more than 8 million PHP per year are charged a 15% – 30 % tax rate (Previously 20% – 32%).
Is 30k salary taxable in the Philippines? ›
The monthly tax for a monthly income of ₱30,000 in the Philippines is ₱1,468.40. We get that value by: Subtracting the total contributions of ₱1,825 (₱1,125 for SSS, ₱600 for PhilHealth, and ₱100 for Pag-IBIG) from the monthly income of ₱30,000 to get the taxable income of ₱28,175.
Is 25k salary taxable in the Philippines? ›
Employees earning up to ₱250,000 annually (or ₱20,833 monthly) are still exempt from paying income tax. Employees earning over ₱250,000 but not over ₱8,000,000 annually (or over ₱20,833 but not over ₱666,666 monthly) have lower tax rates ranging from 15% to 30%, from 20% to 32% previously.
How much is the tax on 100000 salary in the Philippines? ›
Periodic Payroll Deductions Overview
| Yearly | Monthly |
|---|
| Taxable Income | 94,770.00 | 7,897.50 |
| Total Deductions | 5,230.00 | 435.83 |
| Salary After Tax | 94,770.00 | 7,897.50 |
| Employer Payroll Contributions | 20,329.00 | 1,694.08 |
5 more rowsIf you make ₱ 20,000 a year living in Philippines, you will be taxed ₱ 2,756. That means that your net pay will be ₱ 17,244 per year, or ₱ 1,437 per month. Your average tax rate is 13.8% and your marginal tax rate is 9.9%.
How much tax do I pay on 50k salary in Philippines? ›
Periodic Payroll Deductions Overview
| Yearly | Monthly |
|---|
| Taxable Income | 46,580.00 | 3,881.67 |
| Total Deductions | 3,420.00 | 285.00 |
| Salary After Tax | 46,580.00 | 3,881.67 |
| Employer Payroll Contributions | 19,079.00 | 1,589.92 |
5 more rowsIf you make ₱ 40,000 a year living in Philippines, you will be taxed ₱ 3,846. That means that your net pay will be ₱ 36,154 per year, or ₱ 3,013 per month. Your average tax rate is 9.6% and your marginal tax rate is 4.8%.
How much is the tax on 70k salary in the Philippines? ›
If you make ₱ 70,000 a year living in Philippines, you will be taxed ₱ 5,288. That means that your net pay will be ₱ 64,712 per year, or ₱ 5,393 per month. Your average tax rate is 7.6% and your marginal tax rate is 4.8%.
Periodic Payroll Deductions Overview
| Yearly | 2 Weekly |
|---|
| Taxable Income | 18,480.00 | 92.40% |
| Total Deductions | 1,520.00 | 7.60% |
| Salary After Tax | 18,480.00 | 92.40% |
| Employer Payroll Contributions | 7,861.00 | 39.31% |
5 more rowsIf you make ₱ 200,000 a year living in Philippines, you will be taxed ₱ 10,801. That means that your net pay will be ₱ 189,199 per year, or ₱ 15,767 per month.
How do you calculate individual taxable income? ›
For individual filers, calculating federal taxable income starts by taking all income minus “above the line” deductions and exemptions, like certain retirement plan contributions, higher education expenses, student loan interest, and alimony payments, among others.
Is 22k salary taxable in the Philippines? ›
If you make ₱ 22,000 a year living in Philippines, you will be taxed ₱ 2,953. That means that your net pay will be ₱ 19,047 per year, or ₱ 1,587 per month. Your average tax rate is 13.4% and your marginal tax rate is 9.9%.
How much tax do I pay on 24k in the Philippines? ›
If you make ₱ 24,000 a year living in Philippines, you will be taxed ₱ 3,058. That means that your net pay will be ₱ 20,942 per year, or ₱ 1,745 per month. Your average tax rate is 12.7% and your marginal tax rate is 5.0%.
Is 26k taxable in the Philippines? ›
If you make <b>₱ 26,000</b> a year living in <b>Philippines</b>, you will be taxed <b> ₱ 3,157</b>. That means that your net pay will be <b>₱ 22,843</b> per year, or <b>₱ 1,904</b> per month. Your average tax rate is <b>12.1%</b> and your marginal tax rate is <b>4.9%</b>.
How much is the tax on 40000 in the Philippines? ›
If you make ₱ 40,000 a year living in Philippines, you will be taxed ₱ 3,846. That means that your net pay will be ₱ 36,154 per year, or ₱ 3,013 per month. Your average tax rate is 9.6% and your marginal tax rate is 4.8%.
What is the income tax rate in the Philippines in 2024? ›
Philippines Personal Income Tax Tables in 2024
| Tax Rate | Taxable Income Threshold |
|---|
| 15% | Income from ₱ 250,000.01 | ₱ 400,000.00 |
| 20% | Income from ₱ 400,000.01 | ₱ 800,000.00 |
| 25% | Income from ₱ 800,000.01 | ₱ 2,000,000.00 |
| 30% | Income from ₱ 2,000,000.01 | ₱ 8,000,000.00 |
2 more rowsIf you make ₱ 23,000 a year living in Philippines, you will be taxed ₱ 3,008. That means that your net pay will be ₱ 19,992 per year, or ₱ 1,666 per month. Your average tax rate is 13.1% and your marginal tax rate is 5.0%.
How much is the tax on 21 000 in the Philippines? ›
If you make ₱ 21,000 a year living in Philippines, you will be taxed ₱ 2,854. That means that your net pay will be ₱ 18,146 per year, or ₱ 1,512 per month. Your average tax rate is 13.6% and your marginal tax rate is 9.9%.
