Withholding Tax on Salary 2026 Philippines: Table and Computation
Quick answer
Your employer deducts income tax from your salary every payday using the BIR withholding tax table, and if your yearly taxable income is PHP 250,000 or less, the tax is zero. Taxable income is your gross pay minus your SSS, PhilHealth and Pag-IBIG shares and non-taxable pay, such as 13th month and other benefits up to PHP 90,000. Minimum wage earners are exempt.
Requirements
- You are an employee paid a salary in the Philippines.
- You have a TIN. New employees register through their employer with BIR Form 1902. See our TIN guide.
- You give your employer BIR Form 2316 from your previous employer if you changed jobs in the same year.
- For substituted filing (no need to file your own ITR): one employer for the whole year and tax correctly withheld.
Fees
| Item | Amount |
|---|---|
| 250,000 or less | 0 |
| Over 250,000 to 400,000 | 15% of the amount over 250,000 |
| Over 400,000 to 800,000 | 22,500 + 20% of the amount over 400,000 |
| Over 800,000 to 2,000,000 | 102,500 + 25% of the amount over 800,000 |
| Over 2,000,000 to 8,000,000 | 402,500 + 30% of the amount over 2,000,000 |
| Over 8,000,000 | 2,202,500 + 35% of the amount over 8,000,000 |
Steps
Online
1. Get your gross pay and your SSS, PhilHealth and Pag-IBIG employee shares from your payslip
2. Subtract them and any non-taxable pay from your gross pay
3. Enter the numbers in the withholding tax calculator, or apply the table above
4. Compare the result with the tax on your payslip
5. At year end, check your BIR Form 2316 from your employer
6. If you had two or more employers in the year, or other income, file your own annual ITR (BIR Form 1700 or 1701) through the BIR eFiling options
Walk-in
1. Questions about your tax records can be asked at your Revenue District Office (RDO)
Bring your TIN and ID. See /offices/bir/.
Processing time
- Tax is deducted every payday.
- Year-end adjustment: usually in the last payroll of the year, which can mean a refund or extra tax.
- BIR Form 2316: given to you on or before January 31 of the next year, or on your last payday if you leave.
Where to apply
- Apply on the official website: https://www.bir.gov.ph/
Common problems and fixes
Two employers in one year
Give your new employer the BIR Form 2316 from the old one. You may need to file your own ITR.
Tax deducted from minimum wage
Minimum wage earners are exempt on their minimum wage and some premium pay. Ask HR.
13th month taxed
Only the part of 13th month and other benefits above PHP 90,000 is taxed.
Big tax in December
This is the year-end adjustment. It corrects under-withholding during the year.
No BIR Form 2316 received
Ask HR. Employers must give it.
Multiple TINs
Having more than one TIN is not allowed. Ask your RDO to cancel the extra one.
Frequently asked questions
How much tax is deducted from my salary?
It depends on your taxable pay. It is zero if your yearly taxable income is PHP 250,000 or less. Use our calculator.
Is my salary tax-free if I earn PHP 20,000 a month?
Usually yes, because monthly taxable pay up to about PHP 20,833 has zero tax.
Are minimum wage earners taxed?
No. Minimum wage earners are exempt on their minimum wage.
Is 13th month pay taxable?
Only the part above PHP 90,000, combined with other benefits.
What is BIR Form 2316?
It is the certificate from your employer that shows your pay and the tax withheld for the year. Keep a copy.
Do I need to file an ITR if I am an employee?
Not if you had one employer all year and tax was correctly withheld (substituted filing).
Are SSS, PhilHealth and Pag-IBIG deducted before tax?
Yes. Your employee shares are subtracted before tax is computed.
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