BIR Withholding Tax Calculator
Check just your withholding tax for a pay period, without a full salary breakdown.
Withholding tax on compensation is income tax that your employer deducts from your pay in advance, on behalf of the Bureau of Internal Revenue (BIR), based on your projected annual income. Under the TRAIN law, individuals earning a taxable income of ₱250,000 or less per year pay no income tax at all.
To compute it, your taxable income — gross pay minus your SSS, PhilHealth, and Pag-IBIG employee contributions — for the current pay period is projected out to a full year (annualized), run through the BIR's progressive tax brackets below, and the resulting annual tax is then divided back down to your pay period.
| Annual taxable income | Tax |
|---|---|
| ₱250,000 and below | Exempt (0%) |
| ₱250,001 – ₱400,000 | 15% of the excess over ₱250,000 |
| ₱400,001 – ₱800,000 | ₱22,500 + 20% of the excess over ₱400,000 |
| ₱800,001 – ₱2,000,000 | ₱102,500 + 25% of the excess over ₱800,000 |
| ₱2,000,001 – ₱8,000,000 | ₱402,500 + 30% of the excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of the excess over ₱8,000,000 |
Payroll withholding versus final tax
Withholding is an advance collection, not always the final amount for the year. Employers reconcile actual compensation and tax withheld before issuing BIR Form 2316. A bonus, taxable benefit, prior employer, or payroll correction can therefore make your payslip different from a single-period estimate.
Many employees with one employer qualify for substituted filing, but people with multiple employers, business or professional income, or other mixed income may still need to file an annual return. Mandatory employee contributions are considered in the salary calculator; personal loan payments and voluntary savings do not automatically reduce taxable income.
Want your full paycheck breakdown? Try the Salary Calculator for SSS, PhilHealth, Pag-IBIG, withholding tax, and net take-home pay together. For how withholding relates to your annual ITR, see the Government Benefits Guide.
Frequently asked questions
After mandatory employee contributions are deducted, your annualized taxable income may fall within the zero-tax band. A zero result for one pay period does not settle your full-year tax if you later receive bonuses, change employers, or earn other taxable income.
Not always. Withholding is an advance collection based on payroll estimates; your employer normally annualizes and reconciles it at year-end. Multiple employers, mixed income, or outside earnings can mean you must file and pay or claim a refund separately.
The mandatory employee contributions used by the salary calculator reduce compensation income before the withholding-tax estimate is calculated. Voluntary savings, personal loan payments, and many other payroll deductions do not automatically reduce taxable income.
Form 2316 reflects your employer’s actual year-to-date payroll records, including bonuses, taxable benefits, adjustments, and prior-employer information provided during the year. This calculator only knows the single pay-period amount you enter, so use Form 2316 and official BIR guidance for filing.