Philippines Income Tax Brackets 2025 — TRAIN Law

Published: 2026-05-01 · Updated: 2026-05-12 · SuweldoKo

What are the income tax brackets in the Philippines?

Under the TRAIN Law (effective January 1, 2023), annual taxable income up to PHP 250,000 is tax-exempt. Income from PHP 250,001 to PHP 400,000 is taxed at 15%. From PHP 400,001 to PHP 800,000 at 20% (plus PHP 22,500 base). From PHP 800,001 to PHP 2,000,000 at 25% (plus PHP 102,500 base). From PHP 2,000,001 to PHP 8,000,000 at 30% (plus PHP 402,500 base). Above PHP 8,000,000 at 35%.

TRAIN Law Tax Brackets (Effective January 1, 2023 Onwards)

These are the current rates under RA 10963 (TRAIN Law) as amended. These rates replaced the transitional 2018–2022 rates effective January 1, 2023.

Annual Taxable Income	Tax Rate	Tax Due
Up to PHP 250,000	0%	PHP 0 — fully exempt
PHP 250,001 – PHP 400,000	15%	15% of excess over PHP 250,000
PHP 400,001 – PHP 800,000	20%	PHP 22,500 + 20% of excess over PHP 400,000
PHP 800,001 – PHP 2,000,000	25%	PHP 102,500 + 25% of excess over PHP 800,000
PHP 2,000,001 – PHP 8,000,000	30%	PHP 402,500 + 30% of excess over PHP 2,000,000
Over PHP 8,000,000	35%	PHP 2,202,500 + 35% of excess over PHP 8,000,000

How to Compute Your Income Tax (Annualized Method)

Step 1: Compute annual gross income (monthly gross × 12). Step 2: Subtract mandatory contributions (SSS + PhilHealth + Pag-IBIG) × 12 — these are deductible from taxable income. Step 3: Add taxable portion of 13th month pay and other benefits (amount exceeding PHP 90,000 ceiling). Step 4: Apply the progressive bracket to the resulting annual taxable income. Step 5: Divide annual tax by 12 to get the monthly withholding average.

Worked Example — PHP 30,000 Monthly Gross

Step	Computation	Amount
Monthly Gross	—	PHP 30,000
SSS (4.5%, capped PHP 1,575)	PHP 30,000 × 4.5%	PHP 1,350
PhilHealth (2.5% employee share)	PHP 30,000 × 2.5%	PHP 750
Pag-IBIG (2%, capped PHP 200)	PHP 30,000 × 2%	PHP 200
Total Monthly Contributions	—	PHP 2,300
Annual Taxable Income	(PHP 30,000 − PHP 2,300) × 12	PHP 332,400
TRAIN Bracket Applied	15% bracket (PHP 250,001–400,000)	—
Annual Income Tax	PHP 332,400 − PHP 250,000 = PHP 82,400 × 15%	PHP 12,360
Monthly Income Tax (avg)	PHP 12,360 ÷ 12	PHP 1,030
Monthly Take-Home Pay	PHP 30,000 − PHP 2,300 − PHP 1,030	PHP 26,670

Common Questions

Mga Karaniwang Tanong

What are the income tax brackets in the Philippines?▾

Under the TRAIN Law (effective January 1, 2023 onwards): 0% up to PHP 250,000; 15% on PHP 250,001–400,000; PHP 22,500 + 20% on PHP 400,001–800,000; PHP 102,500 + 25% on PHP 800,001–2,000,000; PHP 402,500 + 30% on PHP 2,000,001–8,000,000; PHP 2,202,500 + 35% above PHP 8,000,000.

Is there a minimum salary exempt from income tax in the Philippines?▾

Yes. Under the TRAIN Law, employees earning PHP 250,000 or less annually (approximately PHP 20,833 per month) pay zero income tax. This exemption applies to all compensation income earners.

How is monthly withholding tax computed?▾

The employer computes the annual taxable income (annual gross minus contributions minus tax-exempt benefits), applies the progressive brackets to get annual tax, then divides by 12 for the monthly withholding amount.

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