This BIR Tax Calculator helps you easily compute your income tax, add up your monthly contributions, and give you your total net monthly income.
The Tax Caculator Philipines 2024 is using the latest BIR Income Tax Table as well as SSS, PhilHealth and Pag-IBIG Monthy Contribution Tables for the computation.
How to Use BIR Tax Calculator 2024
- Step 1: Please enter your total monthly salary.
- Step 2: Click on Calculate button. The results will be displayed below it.
BIR Income Tax Table
You are probably aware of the Train Law or the Republic Act No. 10963, which is also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
Since the implementation year, employees on both government and non-government sectors have experienced a big drop on tax reduction on their monthly pay. However, many products in the market got its price a bit higher.
So just in case you are wondering how much tax you are paying to the government of the Philippines, take a look at this tax table.
This is the Revised Withholding Tax Table that is effective January 1, 2023 and onwards, unless the goverment issues changes.
| 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: BIR Tax Information
How to Compute Income Tax
Base on the tax table you've just seen, you are probably thinking that computation of your income tax is just looking for your monthly salary and deduct it directly.
You are close to that but there is an actual procedure on how to compute your income tax and you're going to learn this now.
Step 1: Base on your monthly salary, get your taxable income.
Of course, you already know your monthly income.
The first thing you have to do is to get your taxable income. Okay, to do that, you just have to deduct your monthly contributions to SSS (or GSIS), PhilHealth and Pag-IBIG.
If you don't know yet how to compute your monthly contributions, these are helpful tools for that:
As we go along, it's better to cast an example salary so let's assume you are earning ₱25,000 per month.
Monthly Salary: ₱25,000
Base on that, your monthly contributions would be:
SSS: ₱1,125.00
PhilHealth: ₱625.00
Pag-IBIG: ₱100
You have to add them all up to get your total deductions.
Total Deductions = SSS + PhilHealth + Pag-IBIG
= ₱1,125.00 + ₱625.00 + ₱100
= ₱1,850.00
So what's next? Subtract your total deductions to your monthly salary, the result will be your taxable income.
Taxable Income = Monthly Salary - Total Deductions
= ₱25,000 - ₱1,850.00
= ₱23,150
Base on our sample computation, if you are earning ₱25,000/month, your taxable income would be ₱23,150.
Step 2: Look into the income tax table and determine your salary column.
After getting your taxable income or salary, take a look at the income tax table above and determine where your taxable income fall into the columns.
As a continuation of your example, since the taxable income is ₱23,400. This one falls into column 2 or bracket 2 (whatever you want to call it).
Step 3: Compute your income tax base on your salary, taxable income and income tax rate.
Base on what's on the column 2, our "Prescribed Minimum Withholding Tax" is ₱0.00 + 15% over Compensation Level (CL). Relax, this is relatively easy to compute.
Let's break this one by one.
First we have fixed ₱0.00 tax. Other salary bracket got ₱2,500, ₱10,833.33, ₱40,833.33, ₱200,833.33. That's a lot of money, I would cry if that's my monthly tax.
Second we have "+ 15% over Compensation Level (CL)".
What is "Compensation Level"? In our example, it's ₱20,833. Take a look at the Compensation Level row of the left side. (I just wanted you to look to understand it, nothing special here.)
What's the meaning of "15% over Compensation Level"? It means that we have to subtract first our taxable income to the compensation level, then get the 15% of that.
Here's how it goes:
15% over Compensation Level = (Taxable Income - Compensation Level) x 15%
= (₱23,150 - ₱20,833) x 15%
= ₱2,317 x 15%
= ₱347.55
So we got the "15% over Compensation Level". It's time to get the real income tax.
Base on the tax table, our income tax would be:
Income Tax = ₱0.00 + 15% over Compensation Level (CL)
= ₱0.00 + ₱347.55
= ₱347.55
Voila! ₱347.55 is our income tax.
Optional How to get your net take home pay.
To know how much money you'll really keep and take to your home after all the taxes and deductions, well, you just have to subtract them all.
From your gross salary, the salary as reflected on your employment contract, subtract your monthly contributions and income tax.
So continuing on our example above that assuming your salary is ₱25,000 per month, a total monthly contributions worth ₱1,600 and income tax worth ₱513.4, here's our computation:
Net Salary = Gross Salary - (Monthly Contributions + Income Tax)
= ₱25,000 - (₱1,850.00 + ₱347.55)
= ₱25,000 - ₱2,197.55
= ₱22,802.45
Your net-take home pay or net salary would be ₱22,802.45!
That's the step by step guide on how you can compute your income tax and get your monthly net salary.