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Philippines Salary Calculator
Calculate your Take-Home Salary in the Philippines Quickly and Easily
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Take Home Salary Calculator - Philippines
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Understand what impacts your Take-Home Salary in the Philippines
What is the Income Tax in the Philippines?
In the Philippines, the income tax is calculated based on a progressive tax system. The tax rates for individuals in the Philippines are based on taxable income brackets. The tax rates and income brackets for individuals for taxable year 2023 are as follows:
- 0% for the first ₱250,000 of taxable income
- 20% for taxable income over ₱250,000 up to ₱400,000
- 25% for taxable income over ₱400,000 up to ₱800,000
- 30% for taxable income over ₱800,000 up to ₱2,000,000
- 35% for taxable income over ₱2,000,000 up to ₱8,000,000
- 35% for taxable income over ₱8,000,000
How is the income tax calculated in the Philippines?
In the Philippines, the income tax is calculated based on a progressive tax system. The calculation involves the following steps:
- Determine the Gross Income: This includes all income earned by an individual, including employment income, business income, rental income, and other taxable earnings.
- Compute the Taxable Income: Deduct any allowable deductions, exemptions, and tax reliefs from the gross income. The resulting amount is the taxable income.
- Apply the Tax Rates: The taxable income is subject to progressive tax rates. Apply the respective tax rates based on the income tax brackets provided by the Bureau of Internal Revenue (BIR).
- Calculate Tax Payable: Multiply the taxable income by the applicable tax rate and deduct any applicable tax credits and reliefs. The resulting amount is the income tax payable.
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