Withholding Tax on Salary 2026: BIR Table and Computation
Quick answer
Your employer deducts income tax from every paycheck using the BIR withholding tax table. The tax is zero if your yearly taxable income is PHP 250,000 or less, which is about PHP 20,833 a month. Taxable income is gross pay minus your SSS, PhilHealth and Pag-IBIG shares and non-taxable pay. Your 13th month and other bonuses are non-taxable up to PHP 90,000 a year. Minimum wage earners pay no income tax on their minimum wage.
Who pays and who is exempt?
- Every employee paid a salary in the Philippines is covered. Your employer withholds the tax and pays it to the BIR.
- You need a TIN. New employees usually get one through their employer with BIR Form 1902. See our TIN guide.
- Minimum wage earners are exempt on their statutory minimum wage, holiday pay, overtime pay, night shift differential and hazard pay.
- 13th month pay and other benefits are exempt up to PHP 90,000 a year in total.
- Your employee shares for SSS, PhilHealth and Pag-IBIG are subtracted before tax.
Annual income tax table (2023 onwards)
These are the TRAIN law rates in NIRC Section 24(A)(2), in force since January 1, 2023. Our withholding tax calculator uses the same table.
| Annual taxable income | Tax due |
|---|---|
| PHP 250,000 or less | PHP 0 |
| Over PHP 250,000 to PHP 400,000 | 15% of the excess over PHP 250,000 |
| Over PHP 400,000 to PHP 800,000 | PHP 22,500 + 20% of the excess over PHP 400,000 |
| Over PHP 800,000 to PHP 2,000,000 | PHP 102,500 + 25% of the excess over PHP 800,000 |
| Over PHP 2,000,000 to PHP 8,000,000 | PHP 402,500 + 30% of the excess over PHP 2,000,000 |
| Over PHP 8,000,000 | PHP 2,202,500 + 35% of the excess over PHP 8,000,000 |
Monthly withholding tax table
This is the monthly part of the BIR revised withholding tax table, effective January 1, 2023 and onwards.
| Monthly taxable pay | Tax withheld |
|---|---|
| PHP 20,833 and below | PHP 0 |
| Over PHP 20,833 to PHP 33,332 | 15% of the excess over PHP 20,833 |
| PHP 33,333 to PHP 66,666 | PHP 1,875 + 20% of the excess over PHP 33,333 |
| PHP 66,667 to PHP 166,666 | PHP 8,541.80 + 25% of the excess over PHP 66,667 |
| PHP 166,667 to PHP 666,666 | PHP 33,541.80 + 30% of the excess over PHP 166,667 |
| PHP 666,667 and above | PHP 183,541.80 + 35% of the excess over PHP 666,667 |
Example (monthly): your gross salary is PHP 30,000. Your 2026 employee shares are PHP 1,500 for SSS, PHP 750 for PhilHealth and PHP 200 for Pag-IBIG, or PHP 2,450 in total. Taxable pay is PHP 27,550. Tax = 15% × (27,550 − 20,833) = about PHP 1,008 a month. See the full breakdown in the take-home pay calculator.
How to check the tax on your payslip
- Take your gross pay and your SSS, PhilHealth and Pag-IBIG employee shares from your payslip.
- Subtract the shares and any non-taxable pay from your gross pay.
- Apply the monthly table above, or enter the numbers in the withholding tax calculator.
- Compare the result with the tax on your payslip. Ask HR or payroll about any gap.
- At year end, check the totals on your BIR Form 2316.
Year-end adjustment and BIR Form 2316
- In the last payroll of the year, your employer compares the tax withheld with the tax due for the whole year. The difference becomes a refund or an extra deduction.
- Your employer gives you BIR Form 2316 by January 31 of the next year. If you leave the job, you get it on the day of your last pay.
- Substituted filing: with only one employer all year and the correct tax withheld, you do not file your own annual ITR. Form 2316 then serves as your ITR.
- If you had two or more employers in the same year, you file BIR Form 1700 yourself. With business or professional income too, you file BIR Form 1701.
- Questions about your tax records go to your Revenue District Office (RDO). Bring your TIN and a valid ID.
Where do you apply?
- Apply on the official website: https://www.bir.gov.ph/WithHoldingTax
What are the common problems and how do you fix them?
Two employers in one year
Give your new employer the BIR Form 2316 from the old one. You also file your own ITR (BIR Form 1700).
Tax deducted from minimum wage
Minimum wage earners are exempt on their minimum wage and the premiums listed above. Ask HR to correct it.
13th month taxed
Only the part of your 13th month and other bonuses above PHP 90,000 is taxed.
Big tax in December
This is the year-end adjustment. It corrects tax withheld too low during the year.
No BIR Form 2316
Ask HR. Employers must give it by January 31, or on your last payday if you left.
More than one TIN
Having more than one TIN is not allowed under NIRC Section 236(j). Ask your RDO to cancel the extra one.
Frequently asked questions
How much tax is deducted from my salary in 2026?
It depends on your taxable pay after contributions. Monthly taxable pay of PHP 20,833 or less has no tax. Above that, the tax starts at 15% of the excess.
Is my salary tax-free if I earn PHP 20,000 a month?
Yes. After SSS, PhilHealth and Pag-IBIG, your taxable pay is below PHP 20,833, so no tax is withheld.
Are minimum wage earners taxed?
No. Their minimum wage, holiday pay, overtime, night shift differential and hazard pay are all exempt.
Is 13th month pay taxable?
Only the amount above PHP 90,000, counted together with your other bonuses and benefits.
What is BIR Form 2316?
It is the certificate from your employer showing your pay and the tax withheld for the year. Keep a copy for your next employer and for loans or visas.
Do I need to file an ITR if I am an employee?
Not if you had one employer all year and the tax was correctly withheld. That is called substituted filing.
Are SSS, PhilHealth and Pag-IBIG deducted before tax?
Yes. Your employee shares are subtracted from gross pay before the tax is computed.
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