Calculator inputs
Example data table
| Item | Example value | Notes |
|---|---|---|
| Pay frequency | Monthly | 12 pay periods per year |
| Base pay per month | ₱60,000.00 | Annual base pay = ₱720,000.00 |
| Taxable allowances per month | ₱5,000.00 | Annual taxable allowances = ₱60,000.00 |
| Non-taxable allowances per month | ₱2,000.00 | Included in gross pay view, excluded from taxable base |
| 13th month and other benefits | ₱80,000.00 | Fully exempt in this example because it stays within the cap |
| Total deductible contributions and dues | ₱50,000.00 | SSS/GSIS, PhilHealth, Pag-IBIG, union dues, and other deductions |
| Other annual taxable income | ₱20,000.00 | Added to taxable income estimate |
| Estimated annual tax due | ₱92,500.00 | Based on ₱750,000.00 estimated taxable income |
Formula used
1) Annualized base pay
Annualized base pay = base pay per selected period × pay periods per year.
2) Exempt 13th month and similar benefits
Exempt benefits = lesser of annual benefits entered and ₱90,000. Taxable benefits = annual benefits entered − exempt benefits, but never below zero.
3) Estimated taxable income
Estimated taxable income = annualized base pay + annual taxable allowances + taxable benefits + other taxable income − deductible employee contributions and dues.
4) Graduated annual tax
The calculator applies the annual individual tax schedule:
Up to ₱250,000 = 0%
Over ₱250,000 to ₱400,000 = 15% of excess over ₱250,000
Over ₱400,000 to ₱800,000 = ₱22,500 + 20% of excess over ₱400,000
Over ₱800,000 to ₱2,000,000 = ₱102,500 + 25% of excess over ₱800,000
Over ₱2,000,000 to ₱8,000,000 = ₱402,500 + 30% of excess over ₱2,000,000
Over ₱8,000,000 = ₱2,202,500 + 35% of excess over ₱8,000,000
5) Estimated net pay
Estimated annual net pay = gross annual compensation − deductible contributions − annual tax due.
How to use this calculator
- Choose the pay frequency that matches your payroll cycle.
- Enter your base pay for that period.
- Add taxable and non-taxable allowances separately.
- Input annual 13th month pay and other similar benefits.
- Enter annual employee contributions, dues, and other deductions.
- Add other taxable annual income if needed.
- Optionally enter tax already withheld to estimate balance due or refund.
- Click Calculate Tax to view the summary, graph, and export buttons.
Frequently asked questions
1) Does this calculator replace official payroll or BIR filing?
No. It is an estimator designed for planning. Employers, accountants, and official BIR forms should still be used for withholding, filing, adjustments, and special situations.
2) What type of taxpayer is this page best for?
It is best for resident individual compensation earners who want an annualized estimate from salary, allowances, bonuses, contributions, and withholding already made.
3) Are 13th month pay and bonuses always tax free?
Not always. This estimator treats 13th month pay and similar benefits as non-taxable only up to the entered exemption cap, with any excess becoming taxable.
4) Why separate taxable and non-taxable allowances?
Because they affect the estimate differently. Taxable allowances increase taxable income, while non-taxable allowances can raise gross compensation without increasing the taxable base.
5) Can I use this for self-employed or mixed income cases?
Not as a full compliance tool. Business income, mixed income, final tax items, and optional regimes such as special rates need separate treatment.
6) Why is my monthly tax different from payroll withholding?
Payroll systems may use cumulative withholding, year-end adjustments, employer rules, or changing compensation. This page converts everything into an annualized estimate first.
7) What does the minimum wage earner option do?
It applies a simplified assumption that qualifying compensation income is exempt from regular income tax. Leave unusual taxable items out when using that mode.
8) What do the CSV and PDF exports include?
They export the current result summary, including gross compensation, taxable income, annual tax due, net pay, withholding entered, and estimated balance position.