The withholding tax table that took effect on 1 January 2023 under the TRAIN law is still the table for 2026. The first ₱250,000 of taxable pay a year is tax-free, and rates rise from 15% to 35% above that. Below are the tables for each pay period and a worked example on a monthly salary.
- No tax on taxable compensation up to ₱250,000 a year, or ₱20,833.00 a month.
- Taxable compensation = gross pay − employee SSS, PhilHealth and Pag-IBIG − other non-taxable items.
- Minimum wage earners pay no income tax on their wages.
- The employer annualizes in the last payroll of the year and settles the difference.
Monthly withholding tax table
| Monthly taxable compensation | Tax to withhold |
|---|---|
| ₱20,833.00 and below | ₱0.00 |
| ₱20,833.00 to ₱33,332.99 | 15% of the excess over ₱20,833.00 |
| ₱33,333.00 to ₱66,666.99 | ₱1,875.00 + 20% of the excess over ₱33,333.00 |
| ₱66,667.00 to ₱166,666.99 | ₱8,541.80 + 25% of the excess over ₱66,667.00 |
| ₱166,667.00 to ₱666,666.99 | ₱33,541.80 + 30% of the excess over ₱166,667.00 |
| ₱666,667.00 and above | ₱183,541.80 + 35% of the excess over ₱666,667.00 |
Semi-monthly withholding tax table
| Semi-monthly taxable compensation | Tax to withhold |
|---|---|
| ₱10,417.00 and below | ₱0.00 |
| ₱10,417.00 to ₱16,666.99 | 15% of the excess over ₱10,417.00 |
| ₱16,667.00 to ₱33,332.99 | ₱937.50 + 20% of the excess over ₱16,667.00 |
| ₱33,333.00 to ₱83,332.99 | ₱4,270.70 + 25% of the excess over ₱33,333.00 |
| ₱83,333.00 to ₱333,332.99 | ₱16,770.70 + 30% of the excess over ₱83,333.00 |
| ₱333,333.00 and above | ₱91,770.70 + 35% of the excess over ₱333,333.00 |
Weekly and daily tables
| Weekly taxable compensation | Tax to withhold |
|---|---|
| ₱4,808.00 and below | ₱0.00 |
| ₱4,808.00 to ₱7,691.99 | 15% of the excess over ₱4,808.00 |
| ₱7,692.00 to ₱15,384.99 | ₱432.60 + 20% of the excess over ₱7,692.00 |
| ₱15,385.00 to ₱38,461.99 | ₱1,971.20 + 25% of the excess over ₱15,385.00 |
| ₱38,462.00 to ₱153,845.99 | ₱7,740.45 + 30% of the excess over ₱38,462.00 |
| ₱153,846.00 and above | ₱42,355.65 + 35% of the excess over ₱153,846.00 |
| Daily taxable compensation | Tax to withhold |
|---|---|
| ₱685.00 and below | ₱0.00 |
| ₱685.00 to ₱1,095.99 | 15% of the excess over ₱685.00 |
| ₱1,096.00 to ₱2,191.99 | ₱61.65 + 20% of the excess over ₱1,096.00 |
| ₱2,192.00 to ₱5,478.99 | ₱280.85 + 25% of the excess over ₱2,192.00 |
| ₱5,479.00 to ₱21,917.99 | ₱1,102.60 + 30% of the excess over ₱5,479.00 |
| ₱21,918.00 and above | ₱6,034.30 + 35% of the excess over ₱21,918.00 |
Annual income tax brackets
These are the rates the per-period tables are built from, and the ones used for year-end annualization.
| Annual taxable compensation | Income tax |
|---|---|
| ₱250,000.00 and below | ₱0.00 |
| ₱250,000.00 to ₱399,999.99 | 15% of the excess over ₱250,000.00 |
| ₱400,000.00 to ₱799,999.99 | ₱22,500.00 + 20% of the excess over ₱400,000.00 |
| ₱800,000.00 to ₱1,999,999.99 | ₱102,500.00 + 25% of the excess over ₱800,000.00 |
| ₱2,000,000.00 to ₱7,999,999.99 | ₱402,500.00 + 30% of the excess over ₱2,000,000.00 |
| ₱8,000,000.00 and above | ₱2,202,500.00 + 35% of the excess over ₱8,000,000.00 |
How to compute withholding tax on a salary
- Add up gross pay for the period: basic pay, overtime, premiums and taxable allowances.
- Subtract non-taxable items: the employee's SSS, PhilHealth and Pag-IBIG shares, union dues, de minimis benefits within their ceilings, and 13th month pay and other benefits within the ₱90,000 yearly exemption.
- Find the bracket for the result in the table for your pay period.
- Apply the formula: the fixed tax plus the rate on the excess over the bracket floor.
- Gross pay
- ₱35,000.00
- Less SSS employee share
- ₱1,750.00
- Less PhilHealth employee share
- ₱875.00
- Less Pag-IBIG employee share
- ₱200.00
- Taxable compensation
- ₱32,175.00
- Tax: 15% of the excess over ₱20,833.00
- ₱1,701.30
Net pay before other deductions: ₱30,473.70.
Minimum wage earners
An employee paid the statutory minimum wage for their region is a minimum wage earner. Their basic pay, overtime, holiday pay, night differential and hazard pay are all exempt from income tax. Anything they earn above the minimum, such as a taxable allowance, is still taxed if it pushes them past the exemption.
Year-end annualization
Per-period withholding is an estimate, because pay changes during the year. In the last payroll of December, or on the final pay of an employee who leaves, the employer adds up the year's taxable compensation, applies the annual table, and compares the result with the tax already withheld. A shortfall is withheld from that payroll. An excess must be refunded to the employee by 25 January. Mid-year hires must give you their previous employer's BIR Form 2316 so their whole year is counted.
Withholding is reported monthly on BIR Form 1601-C, by the 10th of the following month for manual filers, and yearly on Form 1604-C with the alphalist by 31 January.