Withholding Tax Calculator (TRAIN Law)
Compute your monthly or semi-monthly withholding tax under the TRAIN Law. Enter your gross salary and we'll auto-compute SSS, PhilHealth, and Pag-IBIG deductions to determine taxable income.
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Automate Tax Computation with TalinoHR
TalinoHR auto-computes withholding tax, handles annualization, and generates BIR 2316 forms for your entire team.
Get Started FreeTRAIN Law Tax Brackets (Monthly)
| Taxable Income Range | Fixed Tax | Rate on Excess |
|---|---|---|
| ₱0 – ₱20,833 | ₱0 | 0% |
| ₱20,833 – ₱33,333 | ₱0 | 15% |
| ₱33,333 – ₱66,667 | ₱1,875 | 20% |
| ₱66,667 – ₱166,667 | ₱8,541.67 | 25% |
| ₱166,667 – ₱666,667 | ₱33,541.67 | 30% |
| ₱666,667 – Above | ₱183,541.67 | 35% |
Annual TRAIN Brackets
| Annual Taxable Income | Fixed Tax | Rate on Excess |
|---|---|---|
| ₱0 – ₱250,000 | ₱0 | 0% |
| ₱250,000 – ₱400,000 | ₱0 | 15% |
| ₱400,000 – ₱800,000 | ₱22,500 | 20% |
| ₱800,000 – ₱2,000,000 | ₱102,500 | 25% |
| ₱2,000,000 – ₱8,000,000 | ₱402,500 | 30% |
| ₱8,000,000 – Above | ₱2,202,500 | 35% |
Frequently Asked Questions
- What are the TRAIN Law tax brackets for 2025?
- Under the TRAIN Law (2023 onwards), annual taxable income up to ₱250,000 is tax-exempt. Rates range from 15% (₱250K–₱400K) to 35% (above ₱8M). The semi-monthly exempt threshold is ₱10,417.
- Who is exempt from withholding tax?
- Employees with annual taxable income of ₱250,000 or below (about ₱20,833/month) are exempt from withholding tax. Their income still needs to be reported but no tax is withheld.
- How is taxable income computed?
- Taxable income = Gross compensation minus mandatory contributions (SSS employee share, PhilHealth employee share, Pag-IBIG employee share) minus non-taxable allowances and benefits.
- Is 13th month pay taxable?
- The first ₱90,000 of 13th month pay and other benefits is tax-exempt. Any excess is added to taxable compensation. This calculator focuses on regular monthly withholding.
- What is annualization?
- At year-end, employers compute total annual tax liability using annual brackets, then adjust for total taxes already withheld. The difference results in a refund or additional tax due.
Read our full guide: Withholding Tax & TRAIN Law Guide 2026 →