BIR Withholding Tax Table 2026
The BIR Revised Withholding Tax Table in force for 2026 — annual, monthly and semi-monthly brackets under the TRAIN Law, with the exact tax withheld on common Philippine salaries.
Last updated: 14 September 2026 · Brackets effective 1 January 2023 onwards (RA 10963, TRAIN Law).
Quick answer
Taxable pay of ₱20,833 a month or less is tax-free. Above that, tax is 15% of the excess up to ₱33,333, then 20%, 25%, 30% and 35% for the higher brackets. The rate applies only to the amount above the bracket floor, and only after SSS, PhilHealth and Pag-IBIG contributions are deducted.
Annual income tax table (2026)
Used for annualised income and for filing BIR Form 1700 / 1701.
| Taxable income | Fixed tax | Plus rate on excess |
|---|---|---|
| ₱250,000 and below | ₱0.00 | None — exempt |
| Over ₱250,000 to ₱400,000 | ₱0.00 | 15% over ₱250,000.00 |
| Over ₱400,000 to ₱800,000 | ₱22,500.00 | 20% over ₱400,000.00 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500.00 | 25% over ₱800,000.00 |
| Over ₱2,000,000 to ₱8,000,000 | ₱402,500.00 | 30% over ₱2,000,000.00 |
| Over ₱8,000,000 | ₱2,202,500.00 | 35% over ₱8,000,000.00 |
Monthly withholding tax table (2026)
For employees paid once a month.
| Taxable income | Fixed tax | Plus rate on excess |
|---|---|---|
| ₱20,833 and below | ₱0.00 | None — exempt |
| ₱20,833 to below ₱33,333 | ₱0.00 | 15% over ₱20,833.00 |
| ₱33,333 to below ₱66,667 | ₱2,500.00 | 20% over ₱33,333.00 |
| ₱66,667 to below ₱166,667 | ₱10,833.33 | 25% over ₱66,667.00 |
| ₱166,667 to below ₱666,667 | ₱40,833.33 | 30% over ₱166,667.00 |
| ₱666,667 and above | ₱200,833.33 | 35% over ₱666,667.00 |
Semi-monthly withholding tax table (2026)
For employees paid on the 15th and end of month.
| Taxable income | Fixed tax | Plus rate on excess |
|---|---|---|
| ₱10,417 and below | ₱0.00 | None — exempt |
| ₱10,417 to below ₱16,667 | ₱0.00 | 15% over ₱10,417.00 |
| ₱16,667 to below ₱33,333 | ₱1,250.00 | 20% over ₱16,667.00 |
| ₱33,333 to below ₱83,333 | ₱5,416.67 | 25% over ₱33,333.00 |
| ₱83,333 to below ₱333,333 | ₱20,416.67 | 30% over ₱83,333.00 |
| ₱333,333 and above | ₱100,416.67 | 35% over ₱333,333.00 |
Withholding tax on common salaries
Private-sector employee, mandatory contributions deducted first.
| Monthly gross | Contributions | Taxable pay | Withholding tax | Take-home |
|---|---|---|---|---|
| ₱20,000.00 | ₱1,700.00 | ₱18,300.00 | ₱0.00 | ₱18,300.00 |
| ₱25,000.00 | ₱2,075.00 | ₱22,925.00 | ₱313.75 | ₱22,611.25 |
| ₱30,000.00 | ₱2,450.00 | ₱27,550.00 | ₱1,007.50 | ₱26,542.50 |
| ₱45,000.00 | ₱3,075.00 | ₱41,925.00 | ₱3,593.33 | ₱38,331.67 |
| ₱70,000.00 | ₱3,700.00 | ₱66,300.00 | ₱8,468.33 | ₱57,831.67 |
| ₱120,000.00 | ₱4,450.00 | ₱115,550.00 | ₱20,762.50 | ₱94,787.50 |
Estimates only. Actual withholding depends on your payroll period, taxable allowances, and your employer's year-end annualisation. Run your own figures in the take-home pay calculator.
How BIR withholding tax is computed on your salary
Withholding tax on compensation is your income tax collected in advance, every payday. Your employer applies the BIR Revised Withholding Tax Table to your taxable pay for the payroll period, remits it to the BIR, and reports it on your BIR Form 2316 at year end.
Taxable pay is not your gross salary. First subtract your mandatory contributions — SSS, PhilHealth and Pag-IBIG — plus any non-taxable allowances such as de minimis benefits and the tax-exempt portion of your 13th month pay and other benefits (up to ₱90,000 combined). What remains is what the table is applied to.
Because the first ₱250,000 of annual taxable income is exempt under the TRAIN Law, anyone whose taxable pay stays at or below ₱20,833 a month pays no withholding tax at all. Above that, only the excess over the bracket floor is taxed at the bracket rate — not your whole salary.
- Withholding tax = fixed base for the bracket + (taxable pay − bracket floor) × bracket rate.
- The brackets in force from 2023 onwards are the second and final TRAIN Law reduction — they did not change for 2026.
- 13th month pay and other benefits are tax-exempt up to a combined ₱90,000; the excess is taxable.
- Minimum wage earners are exempt from income tax, including their holiday pay, overtime, night differential, and hazard pay.
- Purely compensation earners with one employer are covered by substituted filing — BIR Form 2316 stands in for your annual return.
Frequently Asked Questions
How much is the withholding tax on a ₱30,000 salary in the Philippines?
On a ₱30,000 monthly gross, mandatory SSS, PhilHealth and Pag-IBIG contributions come to about ₱2,950, leaving roughly ₱27,050 taxable. That falls in the 15% bracket, so the monthly withholding tax is about ₱932 and take-home pay is around ₱26,118.
What salary is tax-free in the Philippines in 2026?
Taxable pay of ₱20,833 a month or less (₱250,000 a year) carries zero income tax. Because mandatory contributions are deducted first, gross salaries of roughly ₱21,000 to ₱22,000 often still end up with no withholding tax.
Did the income tax rates change in 2026?
No. The current brackets took effect on 1 January 2023 as the final step of the TRAIN Law schedule and remain in force through 2026. Only the contribution rates for SSS, PhilHealth and Pag-IBIG have moved since.
Is 13th month pay subject to withholding tax?
Only the portion above ₱90,000 when combined with other benefits and bonuses. Below that ceiling it is fully tax-exempt.
Why is my withholding tax different from the table?
Most commonly because your employer uses a semi-monthly payroll period, includes taxable allowances, or performs the year-end annualisation that trues up over- or under-withheld tax in your December payslip.
How do I get a refund for over-withheld tax?
Your employer annualises your income at year end. If too much was withheld, the excess is refunded through your December or final payslip and reflected on your BIR Form 2316.