Philippines Tax Calculator
Calculate your SSS, PhilHealth, Pag-IBIG contributions and income tax for 2025
Sample Calculations for 2025
Monthly Salary: ₱25,000
| Description | Amount (PHP) | Calculation |
|---|---|---|
| Monthly Basic Salary | ₱25,000.00 | – |
| SSS Contribution (5%) | ₱1,125.00 | ₱25,000 × 0.05 (capped at max MSC ₱35,000) |
| PhilHealth (2.5%) | ₱625.00 | ₱25,000 × 0.025 (income floor ₱10,000, ceiling ₱100,000) |
| Pag-IBIG | ₱200.00 | 2% of salary (maximum of ₱200) |
| Total Contributions | ₱1,950.00 | Sum of all contributions |
| Taxable Income | ₱23,050.00 | ₱25,000 – ₱1,950 |
| Monthly Income Tax | ₱0.00 | Below ₱250,000 annual taxable income (₱23,050 × 12 = ₱276,600) |
| Net Take-Home Pay | ₱23,050.00 | ₱25,000 – ₱1,950 |
Monthly Salary: ₱50,000
| Description | Amount (PHP) | Calculation |
|---|---|---|
| Monthly Basic Salary | ₱50,000.00 | – |
| SSS Contribution (5%) | ₱1,750.00 | ₱35,000 × 0.05 (capped at max MSC ₱35,000) |
| PhilHealth (2.5%) | ₱1,250.00 | ₱50,000 × 0.025 (income floor ₱10,000, ceiling ₱100,000) |
| Pag-IBIG | ₱200.00 | 2% of salary (maximum of ₱200) |
| Total Contributions | ₱3,200.00 | Sum of all contributions |
| Taxable Income | ₱46,800.00 | ₱50,000 – ₱3,200 |
| Annual Taxable Income | ₱561,600.00 | ₱46,800 × 12 |
| Annual Income Tax | ₱54,820.00 | ₱22,500 + 20% of (₱561,600 – ₱400,000) = ₱54,820 |
| Monthly Income Tax | ₱4,568.33 | ₱54,820 ÷ 12 |
| Net Take-Home Pay | ₱42,231.67 | ₱50,000 – ₱3,200 – ₱4,568.33 |
2025 Contribution Tables
SSS Contribution Table (2025)
Effective January 2025, the SSS contribution rate is 15% with the following breakdown:
- Employee share: 5%
- Employer share: 10%
- Minimum Monthly Salary Credit (MSC): ₱5,000
- Maximum MSC: ₱35,000
| Range of Compensation | Monthly Salary Credit | Employee Share (5%) | Employer Share (10%) | Total Contribution (15%) |
|---|---|---|---|---|
| ₱0 – ₱4,999.99 | ₱5,000 | ₱250 | ₱500 | ₱750 |
| ₱5,000 – ₱7,999.99 | ₱7,000 | ₱350 | ₱700 | ₱1,050 |
| ₱8,000 – ₱9,999.99 | ₱9,000 | ₱450 | ₱900 | ₱1,350 |
| ₱10,000 – ₱14,999.99 | ₱12,500 | ₱625 | ₱1,250 | ₱1,875 |
| ₱15,000 – ₱19,999.99 | ₱17,500 | ₱875 | ₱1,750 | ₱2,625 |
| ₱20,000 – ₱24,999.99 | ₱22,500 | ₱1,125 | ₱2,250 | ₱3,375 |
| ₱25,000 – ₱29,999.99 | ₱27,500 | ₱1,375 | ₱2,750 | ₱4,125 |
| ₱30,000 – ₱34,999.99 | ₱32,500 | ₱1,625 | ₱3,250 | ₱4,875 |
| ₱35,000 and above | ₱35,000 | ₱1,750 | ₱3,500 | ₱5,250 |
PhilHealth Contribution Table (2025)
Effective January 2025, the PhilHealth premium rate is 5.0% with the following details:
- Employee share: 2.5%
- Employer share: 2.5%
- Monthly Basic Salary floor: ₱10,000
- Monthly Basic Salary ceiling: ₱100,000
| Monthly Basic Salary | Employee Share (2.5%) | Employer Share (2.5%) | Total Contribution (5%) |
|---|---|---|---|
| ₱10,000 and below | ₱250 | ₱250 | ₱500 |
| ₱10,001 – ₱99,999.99 | 2.5% of monthly basic salary | 2.5% of monthly basic salary | 5% of monthly basic salary |
| ₱100,000 and above | ₱2,500 | ₱2,500 | ₱5,000 |
Pag-IBIG Contribution Table (2025)
Effective 2025, the Pag-IBIG contribution rates are as follows:
| Type of Member | Employee’s Share | Employer’s Share | Total |
|---|---|---|---|
| Employed Member (Private) | ₱200 | ₱200 | ₱400 |
| Employed Member (Government) | ₱200 | ₱200 | ₱400 |
| Self-Employed (Professionals) | ₱400 | – | ₱400 |
| Self-Employed (Other Earning Groups) | 1% or 2% of earnings* | – | 1% or 2% of earnings* |
| Overseas Filipino Worker (OFW) | ₱200 | – | ₱200 |
| Overseas Filipino Seafarer | ₱200 | ₱200 | ₱400 |
| Kasambahay (≥₱5,000/month) | ₱200 | ₱200 | ₱400 |
| Kasambahay (<₱5,000/month) | – | 3% or 4% of salary** | 3% or 4% of salary** |
* 1% if earning ₱1,000 to ₱1,500 a month; 2% if earning above ₱1,500 a month
** 3% if monthly salary is ₱1,000 to ₱1,500; 4% if monthly salary is above ₱1,500 but not more than ₱5,000
Philippines Tax Guide 2025
Income Tax Rates for 2025
The Philippines uses a progressive income tax system, which means that higher income levels are taxed at higher rates. Here are the income tax rates for 2025:
| Annual Taxable Income | Income Tax Rate |
|---|---|
| ₱250,000 and below | 0% |
| Over ₱250,000 to ₱400,000 | 15% of the excess over ₱250,000 |
| Over ₱400,000 to ₱800,000 | ₱22,500 + 20% of the excess over ₱400,000 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500 + 25% of the excess over ₱800,000 |
| Over ₱2,000,000 to ₱8,000,000 | ₱402,500 + 30% of the excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of the excess over ₱8,000,000 |
These rates apply to compensation income (e.g., salaries, wages) and business income. Non-residents are taxed differently, with a flat rate of 25% on gross income derived from sources within the Philippines.
Understanding SSS Contributions
The Social Security System (SSS) is a government-run insurance program that provides social security protection to Filipino workers in the private sector. SSS offers various benefits such as:
- Sickness benefits
- Maternity benefits
- Disability benefits
- Retirement benefits
- Death benefits
- Funeral benefits
- Loan programs
Starting January 2025, the SSS contribution rate increased to 15%, with the employee contributing 5% and the employer contributing 10%. This is the final increase mandated under Republic Act No. 11199 (Social Security Act of 2018).
The Monthly Salary Credit (MSC) is used to determine the amount of contribution. The minimum MSC is ₱5,000, and the maximum MSC is ₱35,000. If an employee earns less than ₱5,000, the contribution is still computed based on the ₱5,000 MSC. Similarly, if an employee earns more than ₱35,000, the contribution is computed based on the ₱35,000 MSC.
Understanding PhilHealth Contributions
PhilHealth (Philippine Health Insurance Corporation) is the national health insurance program of the Philippines. It provides health insurance coverage and ensures affordable, acceptable, available, and accessible health care services for all Filipinos.
For 2025, the PhilHealth premium rate is 5.0% of the monthly basic salary, with contributions equally shared by the employer and employee at 2.5% each. There is a salary floor of ₱10,000 and a ceiling of ₱100,000.
What this means:
- If your monthly basic salary is ₱10,000 or less, your contribution is computed based on ₱10,000 (₱250 for employee, ₱250 for employer).
- If your monthly basic salary is between ₱10,001 and ₱99,999.99, your contribution is 2.5% of your actual salary for both employee and employer.
- If your monthly basic salary is ₱100,000 or more, your contribution is computed based on ₱100,000 (₱2,500 for employee, ₱2,500 for employer).
PhilHealth provides inpatient and outpatient benefits, covering a portion of hospital bills, professional fees, and medicines. The coverage depends on the case rate for specific conditions or procedures.
Understanding Pag-IBIG Contributions
The Home Development Mutual Fund (HDMF), commonly known as Pag-IBIG Fund, is a government-owned and controlled corporation that provides affordable housing financing to Filipino workers.
For 2025, the maximum monthly Pag-IBIG contribution is ₱200 for the employee and ₱200 for the employer, for a total of ₱400. This is calculated as 2% of the monthly salary, with a maximum fund salary of ₱10,000.
Pag-IBIG Fund offers various benefits to its members, including:
- Housing loans at competitive interest rates
- Short-term loans (Multi-Purpose Loan and Calamity Loan)
- Savings program with annual dividends
- Provident benefits (refund of total accumulated value upon membership maturity)
Members can also make voluntary additional contributions to increase their savings and potentially qualify for higher loan amounts.
Tax Deductions and Exemptions
Understanding tax deductions and exemptions can help you reduce your taxable income. Here are the main deductions and exemptions available in the Philippines:
Mandatory Contributions
The following mandatory contributions are deductible from your gross income:
- SSS/GSIS contributions
- PhilHealth contributions
- Pag-IBIG contributions
Personal and Additional Exemptions
Under the TRAIN Law (Tax Reform for Acceleration and Inclusion), personal exemptions were replaced with higher tax-exempt income thresholds. The first ₱250,000 of annual income is tax-exempt for all taxpayers.
Premium Payments on Health and/or Hospitalization Insurance
You can claim a maximum of ₱2,400 per year in premium payments on health and/or hospitalization insurance as tax-deductible.
13th Month Pay and Other Benefits
The 13th month pay and other benefits, such as productivity incentives and Christmas bonuses, are tax-exempt up to ₱90,000 per year.
De Minimis Benefits
Certain benefits provided by employers, known as de minimis benefits, are also tax-exempt up to certain limits. These include meal allowances, medical benefits, rice subsidy, uniform allowance, and others.
Understanding Taxation in the Philippines: A 2025 Guide
Taxation in the Philippines is overseen by the Bureau of Internal Revenue (BIR), which implements tax laws and regulations. Understanding the tax system is essential for both individuals and businesses to ensure compliance and effective financial planning.
The Philippine tax system is progressive, meaning higher income levels are subject to higher tax rates. For individual taxpayers, income up to ₱250,000 is exempt from tax, while income above this threshold is taxed at rates ranging from 15% to 35%, depending on the income bracket.
In addition to income tax, the Philippines also implements Value Added Tax (VAT) at a standard rate of 12% on most goods and services. There are also excise taxes on specific products like alcohol, tobacco, petroleum products, and sugar-sweetened beverages.
For wage earners, employers are responsible for withholding the appropriate taxes and remitting them to the BIR. This system, known as the withholding tax system, simplifies tax compliance for employees as taxes are deducted directly from their salaries.
Self-employed individuals and professionals have different filing requirements and may choose between the graduated income tax rates or the 8% flat tax on gross sales or receipts exceeding ₱250,000, in lieu of the graduated rates and percentage tax.
Corporate income in the Philippines is generally taxed at 25%, with a lower rate of 20% for corporations with net taxable income not exceeding ₱5 million and total assets not exceeding ₱100 million.
The tax reforms implemented through the Tax Reform for Acceleration and Inclusion (TRAIN) Law and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act have significantly changed the tax landscape in the Philippines, aiming to create a more equitable, efficient, and competitive tax system.
Understanding your tax obligations and planning your finances accordingly can help you optimize your after-tax income and ensure compliance with tax laws, avoiding penalties and legal issues.
Disclaimer
This tool, the Philippines Tax Calculator, is designed to provide a general estimation of your tax obligations based on the inputs you provide. It is not intended as an official source of tax information or a substitute for professional advice. The results and calculations generated by this tool are for informational purposes only and may not reflect your exact tax liability. All users are encouraged to verify calculations and seek guidance from qualified tax professionals or consult the official resources the Philippine government provides for accurate and up-to-date information.
Please note that tax laws and guidelines are subject to change, and it is your responsibility to ensure compliance by obtaining information from reliable and official sources.
For official and detailed information regarding tax laws and regulations in the Philippines, please visit the relevant government websites listed below:
Official Philippine Government Websites
- Bureau of Internal Revenue (BIR)
The Bureau of Internal Revenue's official website provides information on taxes, tax reforms, filing processes, guidelines, and forms. - Department of Finance (DOF)
The DOF provides insights into financial policies, revenue generation, and updates on economic and taxation reforms. - Philippine Government Official Gazette
The Official Gazette offers access to government regulations, amendments, and presidential proclamations, including updates on taxation. - Philippine Taxation and Customs Website - Department of Trade and Industry (DTI)
A resource for businesses seeking information about taxes, customs, and trade regulations.
By using this tool, you agree to the terms of this disclaimer and acknowledge that you are solely responsible for verifying tax-related information from official sources.