Income tax in the Philippines (2026)
In 2026, income tax in the Philippines runs from 15% to 35%. On a ₱700,000 salary you take home ₱595,549 a year, ₱49,629 a month.
Figures are for citizens and permanent residents. Foreign nationals don't pay the citizens-only contributions, so they take home more.
Income tax rates
- Top rate
- 35%
- Lowest rate
- 15%
- Tax-free allowance
- None
- VAT
- 12%
- Capital gains
- 5%
The 2026 bands, in Philippine Peso
| Taxable income (after allowance) | Rate |
|---|---|
| ₱0 to ₱250,000 | 0% |
| ₱250,000 to ₱400,000 | 15% |
| ₱400,000 to ₱800,000 | 20% |
| ₱800,000 to ₱2,000,000 | 25% |
| ₱2,000,000 to ₱8,000,000 | 30% |
| over ₱8,000,000 | 35% |
Take-home pay by salary
₱200,000: ₱182,600 take-home (8.7% total tax)₱250,000: ₱228,850 take-home (8.5% total tax)₱300,000: ₱274,797 take-home (8.4% total tax)₱350,000: ₱314,686 take-home (10.1% total tax)₱400,000: ₱354,575 take-home (11.4% total tax)₱450,000: ₱395,740 take-home (12.1% total tax)₱500,000: ₱436,472 take-home (12.7% total tax)₱600,000: ₱516,011 take-home (14% total tax)₱700,000: ₱595,549 take-home (14.9% total tax)₱800,000: ₱675,088 take-home (15.6% total tax)₱900,000: ₱754,626 take-home (16.2% total tax)₱1,000,000: ₱830,431 take-home (17% total tax)₱1,200,000: ₱979,950 take-home (18.3% total tax)₱1,500,000: ₱1,204,950 take-home (19.7% total tax)₱2,000,000: ₱1,579,950 take-home (21% total tax)₱2,500,000: ₱1,937,120 take-home (22.5% total tax)₱3,000,000: ₱2,287,120 take-home (23.8% total tax)
Compare with other countries
Cost of living in the Philippines
Frequently asked questions
What are the income tax rates in the Philippines?
Income tax in the Philippines runs from 15% to 35%, in 5 bands.
Is there a tax-free allowance in the Philippines?
No — the Philippines has no general tax-free allowance.
What is the take-home pay on ₱700,000 in the Philippines?
On ₱700,000 in the Philippines you take home ₱595,549 a year — ₱49,629 a month.
2026 rules checked against taxsummaries.pwc.com. Single person, employee, no other income. Not tax advice. Change the details