Income Tax (TRAIN Law) Contribution Rates 2025
BIR Withholding Tax (TRAIN Law) — complete rate tables and computation examples for 2025.
Income Tax Brackets 2025 (TRAIN Law)
Monthly Tax Table
| Monthly Taxable Income | Tax Rate | Base Tax |
|---|---|---|
| ₱0 - ₱20,833 | Exempt | - |
| ₱20,834 - ₱33,333 | 15.0% | - |
| ₱33,334 - ₱66,667 | 20.0% | ₱1,875.00 |
| ₱66,668 - ₱166,667 | 25.0% | ₱8,541.67 |
| ₱166,668 - ₱666,667 | 30.0% | ₱33,541.67 |
| Over ₱666,668 | 35.0% | ₱183,541.67 |
Annual Tax Table
| Annual Taxable Income | Tax Rate | Base Tax |
|---|---|---|
| ₱0 - ₱250,000 | Exempt | - |
| ₱250,001 - ₱400,000 | 15.0% | - |
| ₱400,001 - ₱800,000 | 20.0% | ₱22,500.00 |
| ₱800,001 - ₱2,000,000 | 25.0% | ₱102,500.00 |
| ₱2,000,001 - ₱8,000,000 | 30.0% | ₱402,500.00 |
| Over ₱8,000,001 | 35.0% | ₱2,202,500.00 |
Note: Taxable income = Gross salary minus SSS, PhilHealth, and Pag-IBIG contributions.
13th month pay and bonuses are tax-exempt up to ₱90,000/year.
Frequently Asked Questions
What are the tax brackets for 2025?
TRAIN Law rates: 0% up to ₱250,000/year (₱20,833/month), then 15% to 35% progressively.
What is the TRAIN Law?
RA 10963 reformed Philippine income tax. Tax-exempt threshold: ₱250,000/year. Six brackets from 0% to 35%.
Are bonuses taxable?
13th month pay and bonuses are tax-exempt up to ₱90,000/year. Excess is added to taxable income.
Disclaimer: Rates shown are based on official government circulars.
Always verify with SSS,
PhilHealth,
Pag-IBIG, or
BIR.