Freelancer Take-Home Calculator 2026
See exactly what lands in your bank account after BIR taxes and optional SSS, PhilHealth, and Pag-IBIG contributions. Automatically compares the 8% option vs graduated rates.
📅 Updated May 2026
⚖️ 8% vs Graduated comparison
💼 BIR + SSS + PhilHealth + Pag-IBIG
Your Income
= ₱600,000 per year
Foreign-client freelancers, choose USD
Tax Setup
Pure freelancers can pick 8% or graduated
Leave 0 to use 40% OSD
Contributions
Monthly Take-Home
₱41,868
₱502,410 per year
Annual gross₱600,000
Graduated tax₱2,190
Best optionGraduated
Net take-home / year₱502,410
How freelancer income tax works in the Philippines
Filipino freelancers registered with the BIR pay income tax under one of two options. This calculator runs both and shows you which one leaves more in your pocket.
Option 1: 8% Gross Income Tax
Available only if your annual gross sales/receipts are ₱3 million or below and you’re not VAT-registered. Pay a flat 8% on gross income above the ₱250,000 exemption — no expense tracking needed, and it covers both income tax and percentage tax.
8% formula
Tax = (Annual Gross − ₱250,000) × 8%
Option 2: Graduated Income Tax (TRAIN Law)
You can subtract either your itemized business expenses or the 40% Optional Standard Deduction (OSD) before applying the bracket. Mandatory SSS/PhilHealth/Pag-IBIG contributions are also deductible under this option.
| Annual Taxable Income | Tax Due |
|---|---|
| Up to ₱250,000 | 0% |
| Over ₱250,000 to ₱400,000 | 15% of excess over ₱250,000 |
| Over ₱400,000 to ₱800,000 | ₱22,500 + 20% of excess over ₱400,000 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500 + 25% of excess over ₱800,000 |
| Over ₱2,000,000 to ₱8,000,000 | ₱402,500 + 30% of excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of excess over ₱8,000,000 |
2025-2026 Contribution Rates
SSS (Self-Employed)
- 15% of Monthly Salary Credit (MSC)
- MSC range: ₱5,000 (min ₱750/mo) to ₱35,000 (max ₱5,250/mo)
- Mandatory under RA 11199 if earning above ₱1,000/month
PhilHealth (2024-2025)
- 5% premium rate, paid in full by self-employed
- Floor: ₱10,000 income = ₱500/mo minimum
- Ceiling: ₱100,000 income = ₱5,000/mo maximum
- Mandatory under RA 11223 (Universal Health Care)
Pag-IBIG (HDMF)
- ₱200/mo flat for voluntary self-employed members
- Can contribute more under MP2 for higher dividends
- Mandatory under RA 9679
Frequently Asked Questions
Do I have to register with the BIR as a freelancer?
Yes. Anyone earning income in the Philippines outside of pure employment must register with the BIR within 30 days of starting business. You’ll get a Certificate of Registration (BIR Form 2303), an Authority to Print receipts, and a TIN. Foreign clients paying you don’t withhold PH taxes, so the obligation falls entirely on you.
How do I choose between 8% and graduated tax?
You declare your choice on your first quarterly tax filing (BIR Form 1701Q) for the year, or on your initial registration (BIR Form 1901). The choice locks in for the entire taxable year. If you don’t elect 8%, you default to graduated. Once you exceed ₱3M gross or register as VAT, you can no longer use the 8% option.
When are my tax payments due?
Quarterly returns (1701Q): May 15, August 15, and November 15 for Q1-Q3. Annual return (1701 or 1701A): April 15 of the following year. Percentage tax (2551Q) is filed quarterly if you’re not under the 8% option. Late filing incurs 25% surcharge plus 12% annual interest plus compromise penalties.
Are SSS, PhilHealth, and Pag-IBIG mandatory?
PhilHealth is mandatory for all Filipinos under the Universal Health Care Act (RA 11223). SSS is mandatory for self-employed earning above ₱1,000/month (RA 11199). Pag-IBIG is mandatory for SSS members earning at least ₱1,000/month (RA 9679). Enforcement varies, but the legal requirement exists — and your contributions are deductible under graduated.
What counts as deductible business expenses?
Under itemized graduated: internet and phone, equipment depreciation, co-working or home office (portion of rent and utilities), software subscriptions, professional development, payment platform fees, transportation related to client work, and SSS/PhilHealth/Pag-IBIG contributions. All must have official receipts. The 40% OSD is a no-receipts-needed alternative.
What about VAT?
If your gross sales/receipts exceed ₱3 million in any 12-month period, you must register as a VAT taxpayer and charge 12% VAT on your services. Below ₱3M, you pay 3% percentage tax instead (or 0% if you elected the 8% option, which already absorbs the percentage tax). Most freelancers stay below the VAT threshold deliberately.
I work for foreign clients in USD — what changes?
Your income is still taxable in the Philippines if you’re a resident citizen. Convert USD receipts to peso using the exchange rate on the date of receipt (BSP reference rate is acceptable). Service exports may qualify for 0% VAT under Section 108(B) of the Tax Code, but income tax remains. PayPal, Wise, and Payoneer fees are deductible under the itemized graduated option.
Can I deduct my home office?
Yes, proportionally. If your home office occupies 20% of your floor area, you can deduct 20% of rent, electricity, internet, and condo dues as business expenses under itemized graduated. Keep utility bills and lease contracts as supporting documents.
For estimation only. Actual BIR tax depends on your specific registration, deductions, and quarterly filings. Consult a CPA or BIR-accredited tax practitioner for filing decisions.