Withholding Tax on Salary Calculator 2026 (BIR TRAIN Tables)
Compute your monthly BIR withholding tax under RA 10963 (TRAIN Law). Includes SSS, PhilHealth, and Pag-IBIG deductions to get your true taxable income and net take-home pay.
Your salary
Your withholding tax
Monthly Withholding Tax
₱0
on ₱35,000 gross
Breakdown
BIR monthly withholding tax table (2026)
Under RA 10963 (TRAIN Law) as further amended in 2023, the current monthly withholding tax on compensation:
| Taxable monthly | Tax |
|---|---|
| ₱0 – 20,833 | 0% |
| ₱20,834 – 33,332 | 15% of excess over ₱20,833 |
| ₱33,333 – 66,666 | ₱1,875 + 20% of excess |
| ₱66,667 – 166,666 | ₱8,541.80 + 25% of excess |
| ₱166,667 – 666,666 | ₱33,541.80 + 30% of excess |
| Over ₱666,666 | ₱183,541.80 + 35% of excess |
Key point: First ₱250K annually (~₱20,833/mo) is tax-exempt. Below this you owe zero withholding.
Employee contributions (2026 rates)
- SSS: 5% of Monthly Salary Credit (MSC). MSC ranges ₱4,000-₱35,000. Max employee share: ₱1,750/mo.
- PhilHealth: 5% total split 50/50. Employee pays 2.5% of monthly salary up to ₱100,000 MSC cap. Max: ₱2,500/mo.
- Pag-IBIG (HDMF): 2% of monthly compensation, capped at ₱200 (soon rising). New contribution table awaits full rollout.
- Total mandatory: ₱300-₱4,450/mo depending on salary bracket.
These are DEDUCTED from taxable income before withholding tax is applied, effectively lowering your tax.
How BIR withholding actually works
Your employer withholds tax monthly, not annually. The calculation is:
- Take your gross monthly salary
- Subtract mandatory government contributions (SSS, PhilHealth, Pag-IBIG)
- Subtract other approved deductions (HMO, PERA, union dues)
- Result: Taxable Monthly Compensation
- Apply the BIR withholding table above to compute tax
Withheld amount is remitted to BIR by your employer via Form 1601-C by the 10th of the following month. Your annual BIR Form 2316 (Certificate of Compensation Payment) shows the yearly total.
Why your payslip might differ
Real payslips have more moving parts:
- De minimis benefits: up to ₱90K/year non-taxable (rice allowance, medical benefits, uniforms).
- 13th month + bonus: up to ₱90K/year exempt. Excess is added to annual gross for taxation.
- Overtime + night differential: taxable as ordinary compensation.
- Company-specific benefits: HMO share by employer (non-taxable up to limits), stock options, allowances.
- Salary loans: deducted after tax (from take-home), not from taxable income.
The final Annual ITR (BIR Form 1700) reconciles all these — may result in either refund (over-withheld) or tax due (under-withheld).