The BIR withholding tax table 2026 sets how much income tax employers in the Philippines must deduct from each employee’s pay. It is the same graduated schedule that took effect on January 1, 2023 under the TRAIN Law (Republic Act No. 10963) and Revenue Regulations No. 11-2018. The BIR has not issued a new table for 2026.
Quick answer: Monthly taxable compensation up to ₱20,833 is tax-free. Above that, tax starts at 15% of the excess and rises in steps to 35% for taxable pay above ₱666,667 a month. Taxable compensation is gross pay minus the employee shares of SSS, PhilHealth and Pag-IBIG.
Last updated: October 29, 2026
- The 2026 BIR withholding tax table is unchanged from the schedule that took effect on January 1, 2023 under the TRAIN Law.
- Monthly taxable compensation of ₱20,833 or less is tax-free (₱250,000 a year).
- Rates rise from 15% to a top rate of 35% on monthly taxable compensation above ₱666,667.
- Tax is computed after deducting the employee shares of SSS, PhilHealth and Pag-IBIG, and minimum wage earners are exempt.
Withholding Tax Calculator 2026 (Monthly)
Enter a monthly salary to see the SSS, PhilHealth and Pag-IBIG deductions, the withholding tax and the estimated take-home pay.
BIR Withholding Tax Table 2026: Monthly
Most Philippine employers pay monthly or semi-monthly. Find the employee’s taxable compensation for the pay period in the first column, then apply the tax in the second column.
| Taxable compensation | Withholding tax |
|---|---|
| ₱20,833 and below | ₱0.00 |
| ₱20,833 – ₱33,332 | 15% of the excess over ₱20,833 |
| ₱33,333 – ₱66,666 | ₱1,875.00 + 20% of the excess over ₱33,333 |
| ₱66,667 – ₱166,666 | ₱8,541.80 + 25% of the excess over ₱66,667 |
| ₱166,667 – ₱666,666 | ₱33,541.80 + 30% of the excess over ₱166,667 |
| ₱666,667 and above | ₱183,541.80 + 35% of the excess over ₱666,667 |
Semi-Monthly Withholding Tax Table 2026
Use this table if you pay twice a month (for example on the 15th and 30th). Each payroll is taxed on its own taxable compensation.
| Taxable compensation | Withholding tax |
|---|---|
| ₱10,417 and below | ₱0.00 |
| ₱10,417 – ₱16,666 | 15% of the excess over ₱10,417 |
| ₱16,667 – ₱33,332 | ₱937.50 + 20% of the excess over ₱16,667 |
| ₱33,333 – ₱83,332 | ₱4,270.70 + 25% of the excess over ₱33,333 |
| ₱83,333 – ₱333,332 | ₱16,770.70 + 30% of the excess over ₱83,333 |
| ₱333,333 and above | ₱91,770.70 + 35% of the excess over ₱333,333 |
Weekly Withholding Tax Table
| Taxable compensation | Withholding tax |
|---|---|
| ₱4,808 and below | ₱0.00 |
| ₱4,808 – ₱7,691 | 15% of the excess over ₱4,808 |
| ₱7,692 – ₱15,384 | ₱432.60 + 20% of the excess over ₱7,692 |
| ₱15,385 – ₱38,461 | ₱1,971.20 + 25% of the excess over ₱15,385 |
| ₱38,462 – ₱153,845 | ₱7,740.45 + 30% of the excess over ₱38,462 |
| ₱153,846 and above | ₱42,355.65 + 35% of the excess over ₱153,846 |
Daily Withholding Tax Table
| Taxable compensation | Withholding tax |
|---|---|
| ₱685 and below | ₱0.00 |
| ₱685 – ₱1,095 | 15% of the excess over ₱685 |
| ₱1,096 – ₱2,191 | ₱61.65 + 20% of the excess over ₱1,096 |
| ₱2,192 – ₱5,478 | ₱280.85 + 25% of the excess over ₱2,192 |
| ₱5,479 – ₱21,917 | ₱1,102.60 + 30% of the excess over ₱5,479 |
| ₱21,918 and above | ₱6,034.30 + 35% of the excess over ₱21,918 |
Annual Income Tax Table 2026 (Graduated Rates)
The pay-period tables above are derived from the annual graduated rates. Employers use the annual table for the year-end adjustment in December, when total tax withheld for the year is compared with the tax actually due.
| Annual taxable income | Income tax due |
|---|---|
| ₱250,000 and below | ₱0.00 |
| ₱250,000 – ₱400,000 | 15% of the excess over ₱250,000 |
| ₱400,000 – ₱800,000 | ₱22,500 + 20% of the excess over ₱400,000 |
| ₱800,000 – ₱2,000,000 | ₱102,500 + 25% of the excess over ₱800,000 |
| ₱2,000,000 – ₱8,000,000 | ₱402,500 + 30% of the excess over ₱2,000,000 |
| Above ₱8,000,000 | ₱2,202,500 + 35% of the excess over ₱8,000,000 |
How to Compute Withholding Tax on Compensation
- Start with gross taxable pay for the period: basic salary plus taxable allowances, overtime and commissions. Exclude de minimis benefits and the tax-exempt part of 13th-month pay and other benefits (up to ₱90,000 a year).
- Deduct mandatory contributions: the employee shares of SSS, PhilHealth and Pag-IBIG. What remains is taxable compensation.
- Find the bracket in the table that matches your pay frequency.
- Apply the formula: the fixed amount for the bracket plus the percentage of the excess over the bracket floor.
Example: An employee earns ₱30,000 a month. The employee shares are SSS ₱1,500, PhilHealth ₱750 and Pag-IBIG ₱200, so taxable compensation is ₱27,550. That falls in the ₱20,833–₱33,332 bracket: 15% × (₱27,550 − ₱20,833) = ₱1,007.55 withholding tax. Take-home pay is about ₱26,542.45.
Withholding Tax on Common Salaries (2026)
Monthly figures for a regular employee with no other taxable pay. The employer shares of SSS, PhilHealth and Pag-IBIG are not deducted from the employee.
| Monthly basic salary | SSS + PhilHealth + Pag-IBIG (employee) | Taxable compensation | Monthly withholding tax |
|---|---|---|---|
| ₱20,000 | ₱1,700.00 | ₱18,300.00 | ₱0.00 |
| ₱25,000 | ₱2,075.00 | ₱22,925.00 | ₱313.80 |
| ₱30,000 | ₱2,450.00 | ₱27,550.00 | ₱1,007.55 |
| ₱40,000 | ₱2,950.00 | ₱37,050.00 | ₱2,618.40 |
| ₱50,000 | ₱3,200.00 | ₱46,800.00 | ₱4,568.40 |
| ₱100,000 | ₱4,450.00 | ₱95,550.00 | ₱15,762.55 |
Who Is Exempt From Withholding Tax?
- Statutory minimum wage earners: exempt on their minimum wage, holiday pay, overtime pay, night shift differential and hazard pay. See the Philippines minimum wage 2026 by region.
- Employees with taxable compensation of ₱250,000 or less a year: no tax is due, although they still appear in the employer’s annual alphalist.
- 13th-month pay and other benefits up to ₱90,000 a year, plus de minimis benefits within their limits. See our 13th-month pay calculator.
Employer Filing Deadlines
Tax withheld from compensation is reported on BIR Form 1601-C and remitted monthly, generally by the 10th day of the following month (eFPS filers follow a staggered schedule by industry group). In January, employers file the annual information return BIR Form 1604-C and give each employee a BIR Form 2316 (Certificate of Compensation Payment / Tax Withheld) by January 31.
Common Mistakes Employers Make
The most common error is computing tax on gross pay without first deducting the employee shares of SSS, PhilHealth and Pag-IBIG, which over-withholds. Another is skipping the year-end adjustment, so employees who changed salary during the year end up over- or under-taxed. A third is withholding tax from minimum wage earners on their minimum wage. That pay is exempt.
Don’t want to run BIR withholding yourself?
Asiacruit computes withholding tax, files the monthly 1601-C and issues Form 2316 for every Philippines hire, with or without a local entity. Employer of Record services start at $199 per employee per month.
Schedule a call with usOfficial sources: Bureau of Internal Revenue (BIR), Revenue Regulations No. 11-2018. Always confirm current rates and rules with the BIR before running payroll.
Frequently Asked Questions
The 2026 withholding tax table is the same graduated schedule that took effect on January 1, 2023 under the TRAIN Law (RA 10963) and Revenue Regulations No. 11-2018. Monthly taxable compensation up to ₱20,833 is tax-free, and rates then rise from 15% to 35%. The BIR has not issued a new table for 2026.
About ₱1,007.55 a month. After the employee shares of SSS (₱1,500), PhilHealth (₱750) and Pag-IBIG (₱200), taxable compensation is ₱27,550. The tax is 15% of the excess over ₱20,833, which gives ₱1,007.55.
Yes. Monthly taxable compensation of ₱20,833 or less has zero withholding tax, which matches the ₱250,000 annual tax-free threshold. Taxable compensation is gross pay minus mandatory SSS, PhilHealth and Pag-IBIG contributions, so a gross salary somewhat above ₱20,833 can still be tax-free.
No. Statutory minimum wage earners are exempt from income tax on their minimum wage, holiday pay, overtime pay, night shift differential and hazard pay. Other taxable pay above the minimum wage is taxed under the regular table.
13th-month pay and other benefits are tax-exempt up to ₱90,000 combined per year. Only the amount above ₱90,000 is added to taxable compensation.
Employers file BIR Form 1601-C and remit tax withheld on compensation monthly, generally by the 10th day of the following month (eFPS filers follow a staggered schedule). They also file the annual Form 1604-C and give each employee a BIR Form 2316 by January 31.
Related Reading
- SSS Contribution Table 2026 + Calculator
- PhilHealth Contribution Table 2026 + Calculator
- Pag-IBIG (HDMF) Contribution Table 2026 + Calculator
- 13th-Month Pay Calculator 2026
- Cost of Hiring in the Philippines 2026
- Payroll Management Philippines
- Payslip Template Philippines + Free Payslip Generator
- De Minimis Benefits 2026: New BIR Limits
- Overtime Pay Computation Philippines + Calculator
