Philippines Personal Income Tax
Detailed personal income tax rates and rules for Philippines in 2026.
The Philippines' personal income tax was reformed by the TRAIN Law effective 2018, with further adjustments from 2023. Citizens (resident or non-resident) and resident aliens are taxed on worldwide income. Non-resident aliens engaged in trade or business are taxed on Philippine-sourced income at the same graduated rates. Non-resident aliens not engaged in trade are taxed at a flat 25% on gross income. The first PHP 250,000 of taxable income is exempt.
| Income Range (PHP) | Tax Rate |
|---|---|
| ₱0 – ₱250K | 0% |
| ₱250K – ₱400K | 15% |
| ₱400K – ₱800K | 20% |
| ₱800K – ₱2.0M | 25% |
| ₱2.0M – ₱8.0M | 30% |
| ₱8.0M+ | 35% |
Filing Deadline
April 15 (annual income tax return)
Residency Rule
Filipino citizens are taxed on worldwide income regardless of where they reside. Resident aliens are also taxed on worldwide income. Non-resident citizens (overseas Filipino workers) are taxed only on Philippine-sourced income. Aliens present in the Philippines for more than 180 days are considered resident aliens.
Additional Notes
The Philippines follows a citizenship-based taxation model similar to the United States. Filipino citizens working abroad (OFWs) are generally exempt from Philippine tax on foreign employment income. Self-employed individuals and professionals earning below PHP 3 million in gross sales/receipts may opt for an 8% flat tax on gross income in lieu of graduated rates and business tax.
How Philippines Income Tax compares
Philippines’s top personal income tax rate of 35% is the 59th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Asia’s regional average of 22.2%.
