Payroll management in the Philippines relies on the BIR tax table Philippines, which determines how employee compensation is taxed and reported. This BIR tax table supports accurate salary calculations and compliance with Bureau of Internal Revenue regulations. Businesses should always follow current official BIR guidance.
For HR teams, accountants, and business owners, understanding the BIR tax table is essential for applying the correct withholding rates under the TRAIN Law. Businesses should monitor updated BIR issuances and verify their effective dates before changing payroll calculations. It also requires awareness of tax frameworks such as the TRAIN Law, which continues to shape payroll taxation. For example, BIR Revenue Regulation No. 5 updates withholding tax rates under the National Internal Revenue Code.
Key Takeaways
The current rates (effective January 2023 onwards) apply unchanged in 2026. No new rate schedule for this year.
The BIR tax table is the official guide for calculating withholding tax on employee compensation in the Philippines.
Use the BIR tax table Philippines to match taxable income, then calculate base tax plus the excess rate.
Automated payroll solutions apply the correct bracket automatically, saving time and minimising compliance errors.
BIR Withholding Tax Table (effective 2023 - Onwards)
Use the BIR withholding tax table below to find the prescribed withholding amount for the employee’s payroll frequency. Select the daily, weekly, semi-monthly, or monthly schedule and match the employee’s taxable compensation to the applicable range:
1. Daily
| # | Daily Compensation Range | Prescribed Withholding Tax |
| 1 | ₱685 and below | ₱0.00 (Tax-exempt) |
| 2 | ₱685 – ₱1,095 | ₱0.00 + 15% over ₱685 |
| 3 | ₱1,096 – ₱2,191 | ₱61.65 + 20% over ₱1,096 |
| 4 | ₱2,192 – ₱5,478 | ₱280.85 + 25% over ₱2,192 |
| 5 | ₱5,479 – ₱21,917 | ₱1,102.60 + 30% over ₱5,479 |
| 6 | ₱21,918 and above | ₱6,034.30 + 35% over ₱21,918 |
2. Weekly
| # | Weekly Compensation Range | Prescribed Withholding Tax |
| 1 | ₱4,808 and below | ₱0.00 (Tax-exempt) |
| 2 | ₱4,808 – ₱7,691 | ₱0.00 + 15% over ₱4,808 |
| 3 | ₱7,692 – ₱15,384 | ₱432.60 + 20% over ₱7,692 |
| 4 | ₱15,385 – ₱38,461 | ₱1,971.20 + 25% over ₱15,385 |
| 5 | ₱38,462 – ₱153,845 | ₱7,740.45 + 30% over ₱38,462 |
| 6 | ₱153,846 and above | ₱42,355.65 + 35% over ₱153,846 |
3. Semi-Monthly
| # | Semi-monthly Compensation Range | Prescribed Withholding Tax |
| 1 | ₱10,417 and below | ₱0.00 (Tax-exempt) |
| 2 | ₱10,417 – ₱16,666 | ₱0.00 + 15% over ₱10,417 |
| 3 | ₱16,667 – ₱33,332 | ₱937.50 + 20% over ₱16,667 |
| 4 | ₱33,333 – ₱83,332 | ₱4,270.0 + 25% over ₱33,333 |
| 5 | ₱83,333 – ₱333,332 | ₱16,770.70 + 30% over ₱83,333 |
| 6 | ₱333,333 and above | ₱91,770.70 + 35% over ₱333,333 |
4. Monthly
| # | Monthly Compensation Range | Prescribed Withholding Tax |
| 1 | ₱20,833 and below | ₱0.00 (Tax-exempt) |
| 2 | ₱20,833 – ₱33,332 | ₱0.00 + 15% over ₱20,833 |
| 3 | ₱33,333 – ₱66,666 | ₱1,875.00 + 20% over ₱33,333 |
| 4 | ₱66,667 – ₱166,666 | ₱8,541.80 + 25% over ₱66,667 |
| 5 | ₱166,667 – ₱666,666 | ₱33,541.80 + 30% over ₱166,667 |
| 6 | ₱666,667 and above | ₱183,541.80 + 35% over ₱666,667 |
5. Annual BIR Income Tax Table (2023 Onwards)
For annual filing via BIR Form 1700 or 1701, use the annual graduated brackets below. These correspond directly to the monthly table above (monthly bracket × 12 = annual bracket).
| Annual Taxable Income | Base Tax | Rate on Excess |
| Up to ₱250,000 | ₱0.00 | 0% (Tax-exempt) |
| Over ₱250,000 to ₱400,000 | ₱0.00 | 15% over ₱250,000 |
| Over ₱400,000 to ₱800,000 | ₱22,500.00 | 20% over ₱400,000 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500.00 | 25% over ₱800,000 |
| Over ₱2,000,000 to ₱8,000,000 | ₱402,500.00 | 30% over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500.00 | 35% over ₱8,000,000 |
What Is the BIR Tax Table and Why Is It Crucial for Your Business?
The Bureau of Internal Revenue tax table is the official graduated guide businesses use to calculate withholding tax on employee compensation. Although some readers search for it as tax table BIR Philippines, the official schedule applies rates according to taxable income. The BIR income tax table helps employers maintain accurate payroll, financial planning, and statutory compliance.
- Regulatory compliance: Accurate withholding is the bedrock of regulatory finance oversight, protecting your company from BIR penalties, interest charges, and audit exposure.
- Employee trust: Correct payroll deductions build transparency and affect morale and retention.
- Financial planning: A clear grasp of tax brackets helps finance teams model labour costs accurately.
The current tax system in the Philippines is based on the TRAIN Law, which introduced a revised graduated income statement tax table. This table adjusts brackets and rates to provide relief for lower-income earners. It is applied progressively, as you only pay the higher rate on the portion of income that falls within that bracket, not on your entire salary.
How to Read the BIR tax table Philippines and Compute Withholding Tax
To use the BIR withholding tax table correctly, determine the employee’s taxable income, identify the applicable compensation range, and add the fixed base tax to the prescribed rate on the excess. The following steps demonstrate this calculation using monthly payroll examples.
Step 1: Calculate taxable income
Taxable income is not the same as gross salary. Before finding the bracket, subtract the employee’s mandatory government contributions:
Taxable income = Gross monthly salary − (SSS employee share + PhilHealth employee share + Pag-IBIG employee share)
| Calculation Component | calculation | Amount |
|---|---|---|
| Gross monthly salary | Starting amount | ₱200,000.00 |
| SSS employee share | 5% × ₱35,000 maximum monthly salary credit | − ₱1,750.00 |
| PhilHealth employee share | 2.5% × ₱100,000 income ceiling | − ₱2,500.00 |
| Pag-IBIG employee share | 2% × ₱10,000 maximum fund salary | − ₱200.00 |
| Total mandatory contributions | ₱1,750 + ₱2,500 + ₱200 | − ₱4,450.00 |
| Taxable monthly income | ₱200,000 − ₱4,450 | ₱195,550.00 |
Contribution amounts are based on the applicable employee shares and maximum contribution bases. Actual payroll deductions may vary according to the employee’s compensation classification and current agency rules.
Step 2: Find the compensation range
Match the taxable income to the appropriate row in the monthly BIR withholding tax table. Locate the compensation range containing the employee’s taxable income, then note its fixed base amount, lower limit, and applicable percentage rate.
Step 3: Apply the formula
Each bracket row has two components: a fixed base tax and a percentage applied to the excess over the lower bracket limit.
Withholding tax = Base amount + (Rate × (taxable income − compensation level))
| Calculation Component | Calculation | Amount |
|---|---|---|
| Taxable monthly income | Result from Step 1 | ₱195,550.00 |
| Applicable monthly bracket | ₱166,667 – ₱666,666 | 30% rate |
| Base amount | Fixed tax for the applicable bracket | ₱33,541.80 |
| Compensation level | Lower limit of the applicable bracket | ₱166,667.00 |
| Excess over compensation level | ₱195,550 − ₱166,667 | ₱28,883.00 |
| Tax on excess | 30% × ₱28,883 | ₱8,664.90 |
| Monthly withholding tax due | ₱33,541.80 + ₱8,664.90 | ₱42,206.70 |
Withholding tax is calculated using the monthly BIR tax table effective January 1, 2023 onward and the sample taxable income shown above. Actual deductions may vary based on the payroll period, taxable supplementary compensation, payroll adjustments, and the employee’s applicable tax bracket.
Example 1: employee earning ₱25,000/month
- Gross monthly salary: ₱25,000. Estimated contributions: SSS ₱750 + PhilHealth ₱375 + Pag-IBIG ₱200 = ₱1,325
- Taxable income: ₱25,000 − ₱1,325 = ₱23,675
- Bracket: ₱23,675 falls in the lower bracket (₱20,000 – ₱30,000). Base amount: ₱1,000
- Excess over ₱20,000: ₱23,675 − ₱20,000 = ₱3,675. Apply 15%: ₱3,675 × 0.15 = ₱551.25
Monthly withholding tax due: ₱1,000 + ₱551.25 = ₱1,551.25
Example 2: employee earning ₱45,000/month
- Gross monthly salary: ₱45,000. Estimated contributions: SSS ₱1,750 + PhilHealth ₱1,125 + Pag-IBIG ₱200 = ₱3,075
- Taxable income: ₱45,000 − ₱3,075 = ₱41,925
- ₱41,925 falls in bracket 3 (₱33,333 – ₱66,666). Base amount: ₱1,875.00
- Excess over ₱33,333: ₱41,925 − ₱33,333 = ₱8,592. Apply 20%: ₱8,592 × 0.20 = ₱1,718.40
Example 3: employee earning ₱200,000/month
- Gross monthly salary: ₱200,000. Estimated contributions: SSS ₱1,750 + PhilHealth ₱2,500 + Pag-IBIG ₱200 = ₱4,450
- Taxable compensation: ₱200,000 − ₱4,450 = ₱195,550
- Applicable Bracket: ₱166,667 to ₱666,666. Base withholding tax: ₱33,541.80
- Excess over ₱166,667: ₱195,550 − ₱166,667 = ₱28,883. Tax on excess: ₱28,883 x 30% = ₱8,664.90
Monthly withholding tax due: ₱33,541.80 + ₱8,664.90 = ₱42,206.70
Calculating payroll manually becomes more challenging as your workforce grows. An automated payroll system helps simplify the process.
Mandatory Contributions Before Calculating Withholding Tax
While the BIR tax table determines withholding tax, a complete payroll calculation also requires accurate deduction and remittance of mandatory contributions to SSS, PhilHealth, and Pag-IBIG. These contributions matter for the BIR tax table specifically because they reduce the employee’s taxable income before you apply the bracket.
Estimated 2026 employee contribution rates:
| Agency | Employee Share | Employer Share | Basis |
| SSS | 5% of MSC | 10% of MSC | Monthly Salary Credit (₱5,000–₱35,000 range) |
| PhilHealth | 2.5% of basic salary | 2.5% of basic salary | Subject to income floor and ceiling |
| Pag-IBIG | 2% of monthly compensation | 2% | Employee max contribution: ₱200/month |
Always verify current rates directly: SSS · PhilHealth · Pag-IBIG Fund. Rates are subject to change.
MSC Bracket Examples:
- ₱5,000 MSC: Employee share = ₱250, Employer share = ₱500
- ₱10,000 MSC: Employee share = ₱500, Employer share = ₱1,000
- ₱15,000 MSC: Employee share = ₱750, Employer share = ₱1,500
- ₱20,000 MSC: Employee share = ₱1,000, Employer share = ₱2,000
- ₱35,000 MSC: Employee share = ₱1,750, Employer share = ₱3,500
This example illustrates how MSC affects both employee and employer contributions.
Timely remittance of these contributions is legally required. Penalties apply to both late and incorrect remittances. Integrating contribution computation into your payroll system ensures correct net pay and full statutory compliance.
How Payroll Software Helps with BIR Compliance
Manually calculating payroll becomes slower and more error-prone as your workforce grows, especially when the BIR tax table Philippines, contribution rates, and employee details change. An integrated HR and accounting system applies the correct BIR tax table 2026 brackets, computes mandatory contributions, produces accurate payslips, and supports reliable alphalist preparation for annual reporting.
Keep Payroll Data in One Place
A modern system stores all employee data such as personal information, salaries, attendance, and leave into a single database. Payroll is processed automatically using the most up-to-date information, eliminating manual data entry and the inconsistencies that come with it.
Calculate Tax and Contributions Automatically
Payroll software automatically updates BIR tax tables and contribution schedules, adjusts for bonuses, overtime, and other variable pay, and generates the necessary compliance documents including BIR Form 2307 (Certificate of Creditable Tax Withheld at Source) and BIR Form 2316. Calculation errors that trigger under- or over-withholding are eliminated.
Prepare Payroll and Compliance Reports
Automated systems produce payroll summaries, remittance reports, and annual tax forms ready for audits and management decisions. Integration with accounting ensures accurate general ledger entries, simplifying financial tracking and statutory reporting.
"Using an integrated payroll system automates tax calculations, applies the correct BIR tax table, and manages mandatory contributions, ensuring compliance, reducing errors, and improving efficiency as your workforce grows."
Conclusion
Understanding the BIR tax table Philippines and mandatory employee contributions is essential for businesses operating in the Philippines. Staying current with the BIR tax table, TRAIN Law rates, and agency contribution schedules supports accurate payroll, regulatory compliance, and employee trust.
Manual payroll is error-prone and time-consuming, especially as a workforce grows. Automating tax calculations through an integrated payroll system centralises employee data, applies the correct BIR bracket automatically, computes mandatory contributions, and generates the reports your compliance team needs all in one place. If you are evaluating your options, see our guide to payroll software in the Philippines to understand what features matter most for BIR compliance and scalability.
FAQ for BIR Tax Table
No, there are no new rates for 2026. The TRAIN Law (RA 10963) revised withholding tax in two phases: Phase 1 applied from January 2018 to December 2022, and Phase 2 (the current, lower rates) took effect in January 2023. There is no Phase 3. The rates in the tables above apply unchanged to 2026 payroll.
The TRAIN Law (Tax Reform for Acceleration and Inclusion, RA 10963) is the landmark tax reform that revised the personal income tax system in the Philippines. Signed in December 2017, it lowered income tax rates and raised the zero-tax threshold to ₱250,000 annually (₱20,833/month). Its graduated table is now the basis for all BIR withholding tax on compensation.
Under the TRAIN Law, the 13th month pay and other bonuses are non-taxable up to a combined maximum of ₱90,000 per year. Any excess is taxable. For example, an employee with a ₱50,000 monthly wage and ₱30,000 bonus (total ₱80,000) has no taxable amount. However, if the bonus increases to ₱50,000, the total becomes ₱100,000, with ₱10,000 being taxable.
Using an incorrect or outdated tax table creates two risks. Under-withholding may result in BIR penalties, surcharges, and interest charges against the employer under the NIRC. Over-withholding causes employee dissatisfaction and requires the administrative effort of correcting the error and processing refunds, which can be complex for payroll teams. Using updated payroll software eliminates both risks.
Employers must file BIR Form 1601-C (Monthly Remittance Return of Income Taxes Withheld on Compensation) and remit the tax on or before the 10th day of the following month (15th day for eFPS filers in certain groups). Non-compliance results in penalties and interest charges from the BIR.
