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BIR · POLICY REFERENCE

Compensation income tax schedule from 2023 onwards

The graduated annual compensation schedule starts with zero tax up to PHP 250,000. Use annual taxable compensation, not gross pay, in the calculator.

Effective 2023-01-01Reviewed 2026-10-05

Which schedule the tool uses

The annual compensation calculator uses the graduated schedule effective from 2023. The first ₱250,000 of annual taxable compensation is in the zero-tax band.

What to enter

Use annual taxable compensation from payroll or Form 2316, after applicable non-taxable amounts and mandatory contributions. Gross monthly salary is not the same input.

What to do next

Compare the estimate with payroll’s annual reconciliation. Tax credits and tax already withheld are separate from this calculation.

Scope

This tool is not for freelance/business tax, monthly take-home pay, or non-resident tax cases.

Official reference

Read original on BIR ↗

Independent reading summary. An editorial review date is not a publication or effective date.

Compensation income tax schedule from 2023 onwards | PH Life Assistant