BusinessLifePhilippines

How to Compute your Philippine Withholding Tax using a BIR Tax Calculator

Taxes aren’t fun. Fixing and working on it is not as enjoyable as you think. Lately, I have been researching how employers compute my income tax and then I realized I can do it myself.

Thanks to the BIR Tax Calculator. This simple tool can assist you to perform your desire to get the output you’ve been praying all along to get. All you have to do is simply input the data and it will automatically show you how much your withholding tax is and deductions too.

Here’s all the information you need to compute your income tax

  • Status
  • Do you have any dependents and how many?
  • How much are your SSS/Philhealth and PagIbig contributions
  • Allowances and other benefits, if any
  • Copy of the BIR Tax table

Take this as a perfect example

  • Basic Salary: Php 15,000.00
  • Status: Single without dependent
  • Overtime Pay: Php 2,500.00
  • Late deduction: Php 500.00
  • SSS Contribution: Php 500.00
  • Philhealth Contribution: Php 250.00
  • Pag-Ibig Contribution: Php 100.00

Important Reminder:

Determine your taxable income

Follow the formula below to compute your taxable income:

Taxable income = Monthly Basic Pay + Overtime Pay + Holiday Pay + Night Differential) – (SSS/PhilHealth/Pag-IBIG deductions – Tardiness – Absences)

Php 16,150.00 = 15,000 + 2,500 -500-500-250-100

Your tax for the month is Php 1,954.25 by simply checking on this BIR Tax Table

Under S/ME look of the nearest figures with your taxable income and the nearest amount is 15,833 and the tax is Php 1,875.00 + 25% in excess of 15,833

So your tax is 15,833.00 = 1,875.00
Excess (16,150-15,833) = 317 X 25% = 79.25
Tax is ( 1,875.00 + 79.25)= Php 1954.25

Philippine BIR Tax Table Computation

Using the BIR Tax Calculator

Here’s a simple tax calculator that will allow you to automatically compute for your income tax. All you need to do is select your salary period and civil status, and provide the figures for the different fields.

SSS, PhilHealth and Pag-IBIG contributions will automatically appear once you put in your basic salary. Do not use commas in the calculator. Have fun!

Best of luck, buddy! Have fun!

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3 Comments

  1. March 1, 2013 at 3:03 pm

    Thanks for sharing this tool of ours. Hope many will find this FREE tool useful.

  2. heyhey!!
    October 24, 2013 at 7:53 pm

    hello! can you teach me the formula? or maybe can you help me related on computing the income tax. thanks please shoot me an email. 🙂

  3. Anonymous
    February 13, 2014 at 12:10 pm

    Counter 2 napaka unapproachable m. Bkit k ganyan lahat kmi nagspend ng time para magantay sa line un tao krarating lang  bkit nauna pa smin porket ba may pera sya panglagay syo sya ang dapat mauna, harapan nyo pa ginagawa yan di ka na nahiya sa mga tao nagaantay sa digital line nyo ang layo p ng no. Nya. Tpos npaka unproachable m pa para bang hindi k pwede tanungin ang tagal nmin pumila tpos nagsayang lang kmi ng oras syo! My sweldo k naman sana di kana kumukuha ng pera sa tao hindi k kasi nagiging fair sa lahat. Ang dami nagpupunta tao sana nasasagot m ng ayos un mga simple tanong lang naman. Sta. Maria bulacan branch