How the brackets work
Only the part of your income inside each bracket is taxed at that bracket’s rate.
Exempt
The first ₱250,000 of annual taxable income carries no tax at all.
0%Lower brackets
From ₱250,000 to ₱800,000, the excess is taxed at 15 to 20 percent.
15–20%Middle brackets
From ₱800,000 to ₱8 million, rates climb from 25 to 30 percent on the excess.
25–30%Top bracket
Income above ₱8 million a year is taxed at the highest marginal rate.
35%Questions people ask
answered in plain wordsAnnual taxable income up to ₱250,000 is exempt from income tax, which works out to roughly ₱20,833 per month. Amounts above that are taxed in graduated brackets from 15 to 35 percent.