BIR Income Tax Table: What BIR Publishes
Bureau of Internal Revenue · filing
Quick answer
BIR publishes graduated income tax rates under Section 24(A)(2): 0% up to ₱250,000 net taxable income, then 20%, 25%, 30%, 32% and 35% across five bands to ₱8,000,000 and above. Self-employed people under the ₱3,000,000 VAT threshold may instead opt for 8%.
Last verified
Where these figures come from
About these figures: the numbers below come from BIR's official published sources: Bureau of Internal Revenue | Income Tax, Income Tax Rates (https://www.bir.gov.ph/income-tax, retrieved 2026-08-31); Bureau of Internal Revenue | List of BIR Forms, Income Tax Return (https://www.bir.gov.ph/bir-forms, retrieved 2026-08-31). Agencies change fees and rates without notice, so confirm with BIR before you rely on them. Last verified: 2026-08-31.
BIR publishes one graduated schedule on its Income Tax page. This guide reproduces it exactly, and states one thing plainly up front:
BIR’s page carries no effectivity date for the schedule below. It names RA 10963 as the amending law and nothing else. If the taxable year matters to your filing, confirm the applicable schedule with BIR before relying on it.
The graduated rates BIR publishes
Under Section 24(A)(2) of the Tax Code of 1997, as amended by RA 10963, for individual citizens and resident aliens earning purely compensation income and individuals engaged in business and the practice of profession.
| Net taxable income, over | But not over | Rate |
|---|---|---|
| – | ₱250,000 | 0% |
| ₱250,000 | ₱400,000 | 20% of the excess over ₱250,000 |
| ₱400,000 | ₱800,000 | ₱30,000 plus 25% of the excess over ₱400,000 |
| ₱800,000 | ₱2,000,000 | ₱130,000 plus 30% of the excess over ₱800,000 |
| ₱2,000,000 | ₱8,000,000 | ₱490,000 plus 32% of the excess over ₱2,000,000 |
| ₱8,000,000 | – | ₱2,410,000 plus 35% of the excess over ₱8,000,000 |
What that means at the band edges
Applying BIR’s own formulas at each band’s upper limit. This is arithmetic on the published schedule, not a BIR table.
| Net taxable income | Tax under the published schedule | Effective rate |
|---|---|---|
| ₱250,000 | ₱0 | 0% |
| ₱400,000 | ₱30,000 | 7.5% |
| ₱800,000 | ₱130,000 | 16.25% |
| ₱2,000,000 | ₱490,000 | 24.5% |
| ₱8,000,000 | ₱2,410,000 | 30.125% |
Each row’s tax equals the next band’s fixed amount, which is how the schedule is constructed: ₱30,000 is 20% of ₱150,000, ₱130,000 is ₱30,000 plus 25% of ₱400,000, and so on.
The 8% option
For purely self-employed individuals and professionals whose gross sales or receipts and other non-operating income do not exceed the VAT threshold of ₱3,000,000, BIR publishes a choice.
| Option | What it is |
|---|---|
| A | 8% income tax on gross sales or gross receipts in excess of ₱250,000, in lieu of the graduated rates and the percentage tax |
| B | Income tax based on the graduated rates |
The words “in lieu of… the percentage tax” matter: option A replaces the quarterly 3% percentage tax as well. The freelancer tax guide works through both.
Mixed income earners
| Income | How BIR says it is taxed |
|---|---|
| Compensation | Based on the graduated income tax rates |
| Business or profession, total gross sales or receipts not over ₱3,000,000 | Taxpayer may opt for 8% on gross sales or receipts and other non-operating income, in lieu of the graduated rates and the percentage tax; or the graduated rates |
| Business or profession, total gross sales or receipts over ₱3,000,000 | Graduated income tax rates |
Passive income of individual citizens and resident aliens
| # | Passive income | Rate |
|---|---|---|
| 1 | Interest from currency deposits, trust funds and deposit substitutes | 20% |
| 2 | Royalties on books and literary and musical compositions | 10% |
| 2 | Royalties in general | 20% |
| 3 | Prizes of ₱10,000 or less | Graduated income tax rates |
| 3 | Prizes over ₱10,000 | 20% |
| 4 | Winnings, except PCSO and Lotto of ₱10,000 or less | 20% |
| 4 | PCSO and Lotto winnings of ₱10,000 or less | Exempt |
| 5 | Interest from a depository bank under the Expanded Foreign Currency Deposit System | 15% |
| 6 | Cash or property dividends from a domestic corporation, joint stock company, insurance or mutual fund company, or Regional Operating Headquarter of a multinational | 10% |
Which return carries these rates
| Form | Who files it | Due |
|---|---|---|
| 1700 | Individuals earning purely compensation income | April 15 |
| 1701A | Individuals earning purely from business or profession | April 15 |
| 1701 | Mixed income earners, estates and trusts | April 15 |
| 1701Q | Quarterly, individuals, estates and trusts | May 15, August 15, November 15 |
| 1701-MS | Micro taxpayers under ₱3,000,000 gross sales, and small taxpayers ₱3,000,000 to under ₱20,000,000 | BIR publishes no filing date for this form |
| 2551Q | Quarterly percentage tax, where the 8% option is not taken | Within 25 days after the end of each taxable quarter |
The ITR filing guide covers the deadlines and the four exemptions from filing Form 1700, including the one for an individual whose taxable income does not exceed ₱250,000.
Where the ₱250,000 line shows up twice
| Use | Rule |
|---|---|
| Graduated schedule | Net taxable income up to ₱250,000 is taxed at 0% |
| The 8% option | Applied to gross sales or receipts in excess of ₱250,000 |
| Exemption from filing Form 1700 | An individual whose taxable income does not exceed ₱250,000 |
The certificate that shows what was withheld
An employee’s return is built from BIR Form 2316, issued by each employer on or before January 31 of the succeeding year, or on the last payday where employment ends. The Form 2316 guide covers it.
What this page does not cover
BIR does not publish, on the pages read for this guide, the effectivity year of the graduated schedule reproduced above, the withholding tax table on compensation, the corporate income tax rates, the treatment of allowable deductions and the optional standard deduction, or the personal and additional exemptions position. None of those are stated here.
Related
The ITR filing guide covers the deadlines and which return applies. The freelancer tax guide covers the 8% option against the percentage tax, and the 1901 against 1902 guide covers registering in the right category.
Frequently asked questions
- What are the graduated income tax rates?
- As published by BIR under Section 24(A)(2) of the Tax Code as amended by RA 10963: 0% up to ₱250,000; 20% of the excess over ₱250,000 for income over ₱250,000 to ₱400,000; ₱30,000 plus 25% of the excess over ₱400,000 for income to ₱800,000; ₱130,000 plus 30% of the excess over ₱800,000 for income to ₱2,000,000; ₱490,000 plus 32% of the excess over ₱2,000,000 for income to ₱8,000,000; and ₱2,410,000 plus 35% of the excess over ₱8,000,000.
- Which taxable years does that table apply to?
- BIR's page carries no effectivity date for the schedule, so this guide does not assert one. RA 10963 is named as the amending law. If the year matters to your filing, confirm the applicable schedule with BIR or a tax professional before relying on it.
- Who pays nothing?
- Anyone whose net taxable income does not exceed ₱250,000 falls in the 0% band. That is also the threshold above which the 8% option is computed for self-employed people.
- What is the 8% option?
- For purely self-employed individuals and professionals whose gross sales or receipts and other non-operating income do not exceed the VAT threshold of ₱3,000,000, BIR publishes a taxpayer's option: 8% income tax on gross sales or gross receipts in excess of ₱250,000, in lieu of the graduated rates and the percentage tax; or income tax based on the graduated rates.
- What if I have a job and a business?
- Compensation income is taxed on the graduated rates. Business or professional income may use the 8% option if total gross sales or receipts do not exceed ₱3,000,000; above that threshold, the graduated rates apply to it as well.
- How is passive income taxed?
- BIR publishes 20% on interest from currency deposits, trust funds and deposit substitutes; 10% on royalties from books and literary and musical compositions and 20% in general; 20% on prizes over ₱10,000 and graduated rates at ₱10,000 or less; 20% on winnings, with PCSO and Lotto winnings of ₱10,000 or less exempt; 15% on interest from a depository bank under the Expanded Foreign Currency Deposit System; and 10% on cash or property dividends from a domestic corporation.
- Which return do I file?
- BIR Form 1700 for purely compensation income, 1701A for purely business or professional income, and 1701 for mixed income, estates and trusts. All three are filed on or before April 15 for the preceding taxable year.
- Does this page give a withholding tax table?
- No. BIR's income tax page publishes the annual graduated schedule, not the withholding tax table on compensation, and this guide does not reproduce a withholding table it has not read from BIR.