Income Tax Table Philippines 2026
This income tax table Philippines shows the full BIR graduated bracket schedule effective for 2026 — the 0% to 35% rates, the tax due in each bracket, and the actual peso tax at common income levels.
Last updated: June 2026 · Bureau of Internal Revenue · BIR Form 1701 (Table 2) · TRAIN Law RA 10963
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How to Read This Table
The rates apply to your annual taxable income — your gross income minus your mandatory contributions and allowable deductions, not your headline salary.
It is a bracketed system: only the portion of your income that falls inside a bracket is taxed at that bracket’s rate. A raise never pushes your entire income into a higher rate.
The first ₱250,000 is always taxed at 0%. To get your tax, find your income row, take the fixed amount, and add the percentage on the excess above that bracket’s floor.
BIR Graduated Income Tax Table 2026
| Annual Taxable Income | Income Tax Due |
|---|---|
| Not over ₱250,000 | 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 |
Got the table? Two things worth doing next
→ Annual Income Tax Calculator — let it do the bracket math on your exact income
→ Freelancer Tax Calculator — self-employed? compare these rates against the 8% flat tax
Understanding Your Income Tax
The single number most people get wrong is the difference between their bracket and their actual tax rate. If your taxable income is ₱500,000, you are “in the 20% bracket,” but you do not pay 20% on all of it. The first ₱250,000 is taxed at 0%, the next ₱150,000 at 15%, and only the last ₱100,000 at 20% — for a total of ₱42,500, an effective rate of just 8.5%. That gap between your top bracket and your effective rate is the whole reason the graduated system feels gentler than the headline numbers suggest.
This schedule took effect on January 1, 2023 under the TRAIN Law and remains in force for 2026 — there is no separate “2026 table,” only the 2023-onward rates shown above. Employees have this tax withheld monthly and reconcile it on the annual return; the self-employed compute it themselves and may instead opt for the flat 8% rate if they qualify. Either way, the brackets here are the foundation, and the calculators linked below apply them to your real figures.
Income Tax Due at Common Income Levels
Worked from the brackets above, here is the annual income tax on a range of taxable incomes, with the effective rate so you can see how gently it climbs.
| Annual Taxable Income | Income Tax Due | Effective Rate |
|---|---|---|
| ₱250,000 | ₱0 | 0.00% |
| ₱300,000 | ₱7,500 | 2.50% |
| ₱500,000 | ₱42,500 | 8.50% |
| ₱800,000 | ₱102,500 | 12.81% |
| ₱1,000,000 | ₱152,500 | 15.25% |
| ₱2,000,000 | ₱402,500 | 20.13% |
Frequently Asked Questions
Is there a new income tax table for 2026?
No. The current table took effect on January 1, 2023 under the TRAIN Law and continues to apply in 2026. The rates shown above are the ones in force.
How much income is tax-free?
The first ₱250,000 of annual taxable income is taxed at 0%. If your taxable income for the year is ₱250,000 or less, you owe no income tax.
Does the table use gross or taxable income?
Taxable income — your gross minus mandatory SSS, PhilHealth and Pag-IBIG contributions and tax-exempt benefits. The brackets are never applied to gross pay.
What is the highest income tax rate?
35%, which applies only to the portion of taxable income above ₱8,000,000. Income below that is taxed at the lower bracket rates.
Related calculators & guides
📋 Rates verified — Official sources: bir.gov.ph · BIR Form 1701 (Table 2, effective Jan 1, 2023) · TRAIN Law (RA 10963)
⚠️ This is general information, not financial, tax, or legal advice. KnowMyGovt is an independent service — not affiliated with or endorsed by the SSS, PhilHealth, Pag-IBIG, the BIR, DOLE, or the Philippine government — and is not liable for decisions made in reliance on it.
