If you’re a working Filipino earning at least ₱1,000 monthly, it’s important to understand your tax obligations. The government requires all qualified individuals to contribute a portion of their taxable income, which is calculated after deducting mandatory contributions from your gross income. To make this easier, we introduce the Income Tax Calculator Philippines — a simple and effective way to determine how much tax you owe.
🔢 What Is Taxable Income?
Taxable income is the amount you get after subtracting contributions to SSS, PhilHealth, and Pag-IBIG from your gross monthly income. These contributions are non-taxable, meaning they reduce your overall tax liability.
🤔 Why Use an Income Tax Calculator Philippines?
Our Income Tax Calculator Philippines simplifies the process of computing your monthly withholding tax. Instead of manually crunching numbers, the calculator gives you instant results based on your income and employment type. It shows your:
- Gross monthly income
- Total contributions
- Taxable income
- Withholding tax
- Net pay after deductions
Whether you’re employed or self-employed, this tool helps you plan your finances better.
🪧 Mandatory Contributions Breakdown
Before calculating your tax, it’s crucial to understand how each contribution affects your taxable income.
✅ SSS (Social Security System)
The SSS provides benefits like maternity, sickness, disability, and loans. If you’re employed, your contribution is 4.5% of your salary credit. For self-employed individuals, it’s 14% plus a small employee compensation fee (EC).
✅ PhilHealth
PhilHealth helps cover medical costs such as hospital bills and lab fees. The current contribution rate is 5% of your monthly salary, split equally between employer and employee for salaried workers. Self-employed individuals pay the full amount.
✅ Pag-IBIG Fund
This contribution helps you save and access housing loans. Contributions are typically 2% of your monthly salary, matched by your employer. If self-employed, you cover both shares.
💬 How the Income Tax Calculator Philippines Works
- Enter your monthly income
- Choose your employment status (employed or self-employed)
- View real-time results:
- Total deductions (SSS + PhilHealth + Pag-IBIG)
- Taxable income
- Estimated withholding tax
- Net pay
With this automated system, there’s no need to consult complex tables or do manual math.
📈 How to Calculate Income Tax in the Philippines Manually
Here’s a simplified example using the BIR withholding tax table:
Income: ₱40,000/month
Total Contributions: ₱2,450
Taxable Income: ₱40,000 – ₱2,450 = ₱37,550
Using BIR’s table, this falls under the ₱33,333-₱66,666 bracket:
- Fixed tax: ₱1,875
- Rate: 20% over ₱33,333
- Excess: ₱4,217
- Tax: ₱1,875 + (₱4,217 x 0.20) = ₱2,718.40
Net Pay: ₱40,000 – ₱2,718.40 = ₱37,281.60
Net After All Deductions: ₱34,831.60
🚀 Maximize Your Salary: Use the Income Tax Calculator Philippines
Want to ensure you’re paying the correct tax and managing your salary wisely? Try the Income Tax Calculator Philippines to know your exact take-home pay. This tool is especially useful for:
- Budget planning
- Salary negotiations
- Loan and credit card applications
🤔 FAQs About Income Tax in the Philippines
📅 Is ₱20,000 taxable?
No. After benefits deductions, it falls below the ₱20,833 tax-free threshold.
💰 How much is the tax for ₱30,000 salary?
Approx. ₱1,045 after contributions.
🪙 What’s the annual tax on ₱250,000?
Zero. It’s within the tax-exempt ceiling.
💲 How do I calculate tax?
Use the formula: Tax = Fixed Tax + (Taxable Income – Compensation Level) × Rate
Paying taxes is a civic duty, but it doesn’t have to be complicated. Use the Income Tax Calculator Philippines to simplify your finances and stay compliant with tax laws.
Want to learn more? Explore our other helpful tools like the Millionaire Calculator or Pag-IBIG Housing Loan Calculator today!