🇵🇭 How tax works
in Philippines.
2026 · National income tax guide
The calculation, explained.
The compensation schedule effective from 2023 taxes the first PHP250,000 at zero, with progressive rates up to 35%.
SSS, PhilHealth, Pag-IBIG, exempt benefits and business taxes are excluded. Independent professionals may have an eligible 8% gross-receipts election instead; that election is not the salary model.
Doctors: employment and independent practice
The Philippines comparison is an ordinary resident employment scenario. We have not yet verified a doctor-specific independent-practice regime for this country. Do not apply Indonesia’s NPPN 50% here or enter clinic turnover as salary. Practice deductions, professional contributions and mixed income require additional local research.
Tax brackets · PHP
Each rate applies only to the income inside that band.
| Taxable income slice | Rate |
|---|---|
| 0 – 250,000 | 0.0% |
| 250,000 – 400,000 | 15.0% |
| 400,000 – 800,000 | 20.0% |
| 800,000 – 2,000,000 | 25.0% |
| 2,000,000 – 8,000,000 | 30.0% |
| Above 8,000,000 | 35.0% |
Your worked example
Based on your €100,000 annual gross salary estimate, equivalent to ₱7,028,019.
- 1. Annual input
- ₱7,028,019
- 2. Custom deductible expenses
- − ₱0
- 3. Modeled allowance / base deduction
- − ₱0
- 4. Modeled taxable base
- ₱7,028,019
| Taxed portion | Rate | Tax |
|---|---|---|
| ₱250,000 | 0.0% | ₱0 |
| ₱150,000 | 15.0% | ₱22,500 |
| ₱400,000 | 20.0% | ₱80,000 |
| ₱1,200,000 | 25.0% | ₱300,000 |
| ₱5,028,019 | 30.0% | ₱1,508,406 |
- 5. Modeled tax credits (capped at tax due)
- − ₱0
- 6. Included additional tax
- ₱0
- 7. Income tax
- ₱1,910,906
- Effective rate = tax ÷ annual input
- 27.2%
- After income tax, before other deductions
- ₱5,117,114
Sources & assumptions
Sources checked 12 October 2026. The schedule's tax year is shown above; checking a source does not make a simplified model a complete payroll calculation.
Assumptions: single, no dependent children, age 30+, full-year resident, ordinary employment income only. No capital gains, dividends, special expatriate relief or double-tax treaty adjustments.