Philippines withholding tax table 2026: monthly brackets and an example
Employers in the Philippines hold back income tax from each pay and hand it to the Bureau of Internal Revenue (BIR). For employees this is called withholding tax on compensation. The BIR publishes a table for each pay period in Annex E of Revenue Regulations 11-2018, and the table for monthly pay has applied since 1 January 2023. This guide sets it out and works through a monthly salary of ₱50,000.
The monthly table
The table has six bands. Each row gives a fixed tax, which is the tax on everything below the band, and a rate on the excess over the start of the band. To find the withholding, find the band your taxable pay for the month falls in, take the fixed tax and add the rate times the part above the start of the band.
| Taxable pay a month from | Up to | Fixed tax | Rate on the excess |
|---|---|---|---|
| ₱0 | ₱20,833 | ₱0.00 | nil |
| ₱20,833 | ₱33,333 | ₱0.00 | 15% over ₱20,833 |
| ₱33,333 | ₱66,667 | ₱1,875.00 | 20% over ₱33,333 |
| ₱66,667 | ₱166,667 | ₱8,541.80 | 25% over ₱66,667 |
| ₱166,667 | ₱666,667 | ₱33,541.80 | 30% over ₱166,667 |
| ₱666,667 | and above | ₱183,541.80 | 35% over ₱666,667 |
Taxable pay up to ₱20,833 a month is not taxed. The first rate of 15% applies to the next ₱12,500, which is why the fixed tax at ₱33,333 is ₱1,875.00: 15% of ₱12,500. The top rate of 35% starts above ₱666,667 a month.
Taxable pay is not gross pay
The table is applied to taxable compensation. For an employee on a monthly salary with no other benefits, that is gross pay less the employee's SSS, PhilHealth and Pag-IBIG contributions, which are exempt from income tax. See the guide to those contributions. Because of that, the pay at which withholding begins is above ₱20,833: a salary of ₱22,726 or less has no withholding, and the first peso above it starts to be taxed at 15%.
A worked example
Take a monthly salary of ₱50,000. The contributions come off first, and the table is applied to what is left:
| Step, for one month | Amount |
|---|---|
| Gross monthly pay | ₱50,000.00 |
| Less SSS (employee) | ₱1,750.00 |
| Less PhilHealth (employee) | ₱1,250.00 |
| Less Pag-IBIG (employee) | ₱200.00 |
| Taxable compensation | ₱46,800.00 |
| Withholding tax | ₱4,568.40 |
| Net pay | ₱42,231.60 |
The taxable compensation of ₱46,800.00 falls in the 20% band, so the fixed tax of ₱1,875.00 is added to 20% of the ₱13,467.00 above ₱33,333. The same result comes from adding the slices of each band:
| Band of taxable pay | Amount in the band | Rate | Tax |
|---|---|---|---|
| ₱0 to ₱20,833 | ₱20,833.00 | 0% | ₱0.00 |
| ₱20,833 to ₱33,333 | ₱12,500.00 | 15% | ₱1,875.00 |
| ₱33,333 to ₱46,800 | ₱13,467.00 | 20% | ₱2,693.40 |
| Withholding for the month | ₱46,800.00 | ₱4,568.40 |
Withholding of ₱4,568.40 is 9.14% of the gross salary, although the last peso earned is taxed at 20%. That leaves ₱42,231.60 a month. A salary of ₱150,000 has taxable pay of ₱145,550.00 and withholding of ₱28,262.55, which is 18.84% of gross.
The annual table behind it
The monthly table is the yearly TRAIN Law table cut into months. The annual table for 2023 onwards is below, and the monthly bands are these amounts divided by 12.
| Taxable income a year from | Up to | Fixed tax | Rate on the excess |
|---|---|---|---|
| ₱0 | ₱250,000 | ₱0 | nil |
| ₱250,000 | ₱400,000 | ₱0 | 15% over ₱250,000 |
| ₱400,000 | ₱800,000 | ₱22,500 | 20% over ₱400,000 |
| ₱800,000 | ₱2,000,000 | ₱102,500 | 25% over ₱800,000 |
| ₱2,000,000 | ₱8,000,000 | ₱402,500 | 30% over ₱2,000,000 |
| ₱8,000,000 | and above | ₱2,202,500 | 35% over ₱8,000,000 |
The employer's monthly withholding is only an advance. Whether the right tax has been taken for the whole year is settled when the employer annualises pay at year end, so the total withheld can differ slightly from what a flat monthly table gives.
13th month pay
13th month pay and other benefits such as bonuses are exempt from income tax up to ₱90,000 in total a year. A 13th month pay of one month's salary is fully exempt for any salary up to ₱90,000 a month. At ₱150,000 a month the 13th month pay would be ₱150,000, so ₱90,000 is exempt and ₱60,000 is added to taxable income. The calculators show this as a separate note and do not add it to the monthly withholding.
Not included: overtime, night differential, allowances, de minimis benefits, other income, a second employer, and an employee's own deductions at filing time. The BIR table was read from the BIR PDF; the annual table and the ₱90,000 exemption were read on commercial guides, as the Sources and rates page states.
Work out your own net paySources
- BIR: Annex E of Revenue Regulations 11-2018, revised withholding tax table effective 1 January 2023 and onwards
- BIR: Bureau of Internal Revenue
- SSS: contribution table (contributions deducted before tax)
- Every rate used, with its source and check date: Sources and rates
This calculator is general information only. It uses the official pages listed on the Sources page, and your payslip and personal situation may differ. Rates as at 2 November 2026.