BIR Withholding Tax Calculator
Calculate your Philippine compensation withholding tax for monthly, semi-monthly, weekly, or daily pay frequencies using current TRAIN Law tax brackets.
Withholding Tax Inputs
Enter your net taxable compensation (after mandatory SSS, PhilHealth, Pag-IBIG).
₱2,208
Effective tax rate: 6.31%
Calculation Formulas & Steps
1. Locate Tax Bracket
Compare your taxable income for the period against the BIR periodic withholding brackets.
2. Calculate Excess over Floor
Subtract the bracket floor from your taxable income.
3. Apply Marginal Tax Rate
Multiply the excess amount by the bracket's marginal percentage.
4. Compute Final Withholding Tax
Add the bracket's base tax to the marginal tax amount.
Assumptions & Rules
- Uses the BIR Revised Withholding Tax Tables effective January 1, 2023 onwards.
- Assumes compensation income from employer-employee relationship.
- Taxable income should be net of mandatory SSS, PhilHealth, Pag-IBIG contributions and non-taxable de minimis.
Exclusions & Edge Cases
- Does not cover self-employed 8% optional gross income tax regime.
- Does not cover corporate tax or VAT.
- Year-end tax adjustments (BIR Form 2316 annualized calculation) may differ if compensation fluctuates during the year.
Monthly Taxable Income of ₱35,000
An employee has a net taxable monthly compensation of ₱35,000 after statutory deductions.
Sample Inputs
- Taxable Income
- ₱35,000.00
- Pay Frequency
- Monthly
Result Breakdown
- Applicable Bracket
- Bracket 3 (₱33,333 – ₱66,667)
- Base Tax
- ₱1,875.00
- Excess over ₱33,333.33
- ₱1,666.67
- Marginal Tax (20%)
- ₱333.33
- Total Withholding Tax
- ₱2,208.33
- Effective Tax Rate
- 6.31%
Takeaway: Under graduated tax rates, only the portion of your income above the bracket floor (₱1,666.67) is taxed at the higher 20% rate.
How BIR graduated income tax works
The Philippine income tax system uses progressive graduated tax brackets. Under the TRAIN Law (RA 10963), the first ₱250,000 of annual taxable compensation (equivalent to ₱20,833.33 per month) is completely tax-exempt (0% rate).
As income rises, only the excess amount falling into higher brackets is taxed at higher marginal rates (15%, 20%, 25%, 30%, and 35%).
Payroll withholding versus Annual income tax
Payroll withholding tax is an estimate deducted by your employer every cutoff to prepay your annual income tax liability. At the end of the year, your employer performs year-end tax annualization on BIR Form 2316 to ensure the total tax withheld across all 12 months exactly matches your annual liability, refunding any excess or collecting any shortfall.
Questions people ask next
Why is ₱20,833.33 per month tax-free?
Under RA 10963, annual taxable income up to ₱250,000 is tax-free. Divided by 12 months, this equals ₱20,833.33 per month.
Are allowances subject to withholding tax?
Qualified de minimis benefits within statutory limits and non-taxable allowances are exempt from withholding tax. Standard taxable allowances must be added to your taxable income base.
Official Philippine Sources
Kasyafi calculators are updated against first-party government regulations, schedules, and circulars:
BIR Revenue Regulations No. 11-2018 (Revised Withholding Tax Tables)
https://www.bir.gov.ph/income-tax
BIR Official Withholding Tax Online Calculator
https://www.bir.gov.ph/wtcalculator
Republic Act No. 10963 (TRAIN Law)
https://www.officialgazette.gov.ph/2017/12/19/republic-act-no-10963/
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