BIR Income Tax Philippines

Your complete guide to BIR income tax in the Philippines — a free annual income tax calculator, the latest BIR graduated rate table, the 8% flat-tax option for freelancers and professionals, and plain-language help with your TIN and annual return.

Last updated: June 2026 · Bureau of Internal Revenue · NIRC as amended by the TRAIN Law (RA 10963) · BIR RR 8-2018

What is BIR Income Tax?

Income tax is the tax the Bureau of Internal Revenue (BIR) collects on what you earn — from a salary, a business, or the practice of a profession. It is governed by the National Internal Revenue Code (NIRC), as amended by the TRAIN Law (Republic Act No. 10963). If you are an employee, your income tax is already withheld from your pay every month, which is why it shows up as a deduction on your payslip. But the income tax story does not end there: every year you (or your employer, on your behalf) file an annual income tax return that reconciles the full year — and that is where refunds, the 8% option, and additional tax due are settled.

The single most important number to know is that the first ₱250,000 of your annual taxable income is taxed at 0% — it is completely tax-free. Above that, the Philippines uses graduated (tiered) rates that climb from 15% to a top rate of 35%, under the schedule that took effect on January 1, 2023. Only the portion of your income inside each bracket is taxed at that bracket’s rate, so earning a peso more never costs you more than a peso in tax.

Self-employed individuals and professionals get a choice the BIR does not give to pure employees: instead of the graduated rates, they may elect a flat 8% income tax on gross sales or receipts above ₱250,000, in lieu of both the graduated income tax and the percentage tax. This option is available only if your gross sales for the year do not exceed the ₱3,000,000 VAT threshold. For many freelancers the 8% option is simpler and cheaper — but not always, which is exactly the kind of decision the calculators in this section are built to settle for your specific numbers.

It also helps to be precise about what actually gets taxed. The graduated rates and the ₱250,000 zero bracket apply to your taxable income — not your headline gross pay. Taxable income is what remains after the law’s allowable deductions and exclusions are removed: an employee’s mandatory SSS, PhilHealth, and Pag-IBIG contributions come off before tax, and certain benefits such as the 13th-month pay are tax-exempt up to a legislated ceiling. That is why your annual income tax is almost never a flat percentage of your salary, and why two people earning the same gross can owe very different amounts. Whether you are an employee reconciling a year of withholding, a freelancer weighing the 8% option, or someone filing for the first time, the goal of this section is the same: apply the correct BIR rules to your real numbers so the figure you see is the figure the BIR expects.

What You’ll Find in This Section

• Annual Income Tax Calculator — Compute your full-year income tax on the BIR graduated rates
• Freelancer Tax Calculator (8% vs Graduated) — See which option costs you less on your exact income
• Income Tax Table — The complete BIR graduated bracket table, effective 2023 onward
• TIN Registration & BIR Form 1701 — How to get your TIN and file your annual income tax return
• Income Tax Refunds & Year-End Filing — Why you get a refund, year-end annualization, and substituted filing

📋 Rates verified — Official sources: bir.gov.ph · BIR Form 1701 (Table 2, effective Jan 1, 2023) · TRAIN Law (RA 10963) · BIR RR 8-2018