Withholding Tax Table 2026: Monthly BIR Rates Under the TRAIN Law
Withholding Tax Table 2026 Philippines. Monthly TRAIN Law brackets, the P20,833 exemption, and how taxable income is computed after contributions.
Withholding Tax Table 2026 (Monthly)
TRAIN Law monthly withholding brackets. Tax applies to taxable income — gross pay after SSS, PhilHealth and Pag-IBIG contributions. Monthly taxable income of ₱20,833 and below is exempt.
| Monthly Taxable Income | Tax Due |
|---|---|
| ₱20,833 and below | None (exempt) |
| Over ₱20,833 up to ₱33,333 | 15% of excess over ₱20,833 |
| Over ₱33,333 up to ₱66,667 | ₱1,875.00 + 20% of excess over ₱33,333 |
| Over ₱66,667 up to ₱166,667 | ₱8,541.67 + 25% of excess over ₱66,667 |
| Over ₱166,667 up to ₱666,667 | ₱33,541.67 + 30% of excess over ₱166,667 |
| Over ₱666,667 | ₱183,541.67 + 35% of excess over ₱666,667 |
These are the monthly withholding brackets under the TRAIN Law (RA 10963). The schedule reflects the second and final phase of the TRAIN Law rate reductions. Confirm the current schedule against BIR before using it for payroll.
The one thing most people get wrong
Tax is not computed on your gross salary. It is computed on your taxable income, which is your gross pay minus your mandatory contributions to SSS, PhilHealth and Pag-IBIG.
That distinction moves people across brackets. Someone earning ₱22,000 gross looks taxable at first glance — but after roughly ₱1,850 in contributions, taxable income lands near ₱20,150, below the exemption threshold. They pay nothing.
So the sequence is:
- Start with monthly gross pay
- Subtract SSS, PhilHealth and Pag-IBIG employee shares
- Apply the bracket above to whatever remains
What is exempt
Monthly taxable income of ₱20,833 and below is exempt — that is the ₱250,000 annual exemption divided across twelve months.
Separately, statutory minimum wage earners are exempt from income tax on their minimum wage, along with holiday pay, overtime, night shift differential and hazard pay, under RA 9504 as carried into the TRAIN Law. They still pay SSS, PhilHealth and Pag-IBIG, which is why their payslips show deductions but no tax. Whether a particular worker qualifies depends on their regional minimum wage — see the minimum wage by region tables.
What is not taxed
- 13th month pay and other benefits are exempt up to ₱90,000 a year under the TRAIN Law. Only the excess above ₱90,000 is added to taxable income.
- De minimis benefits, within the specific limits BIR sets for each type.
- The mandatory contributions themselves, which is the point above.
These thresholds come from the TRAIN Law and BIR issuances; verify current limits at bir.gov.ph before applying them to payroll.
Annual vs monthly
The table here is the monthly schedule, which is what employers use for payroll withholding. The annual brackets are the same rates applied to twelve times the income — the ₱20,833 monthly exemption is the ₱250,000 annual one. If your pay is irregular, computing annually and dividing gives a more accurate figure than applying the monthly table to a variable salary.
Working it out for your own salary
The Net Pay Calculator does the full sequence — contributions first, then tax on what remains. If you know the take-home figure you need and want to work backwards to the gross, use Gross to Net.
Brackets come from the TRAIN Law schedule. For payroll or filing decisions, verify against bir.gov.ph; this page is a reference, not tax advice.