Browse By

New TRAIN Tax Tables and BIR Income Tax Rates (2018)




The Philippine tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law by Pres. Rodrigo Duterte on December 19, 2017. The tax implementation of TRAIN began on January 1, 2018.

In this article, we focus on the approved Personal Income Tax Rates. Below you’ll find the new income tax tables to be followed by the Bureau of Internal Revenue (BIR) when implementing TRAIN.


UPDATE: We compiled all articles related to the TRAIN law on this page: TRAIN Tax Law, Sample Computations, and BIR Implementing Guidelines. Click the link to access relevant information and updates about the TRAIN and Philippine tax law.


* * * UPDATED resources on the approved TRAIN Tax Reform below:

Take note that there are two sets of income tax tables under TRAIN: (1) Income Tax Tables to be implemented for the years 2018 to 2022; and (2) Income Tax Tables which will be applicable from the year 2023 onwards.

TRAIN Income Tax Table (for Years 2018-2022)

BIR Income Tax Rates – From Year 2018 to 2022

BracketTaxable Income per YearIncome Tax Rate
1P250,000 and below0%
2Above P250,000 to P400,00020% of the excess over P250,000
3Above P400,000 to P800,000P30,000 + 25% of the excess over P400,000
4Above P800,000 to P2,000,000P130,000 + 30% of the excess over P800,000
5Above P2,000,000 to P8,000,000P490,000 + 32% of the excess over P2,000,000
6Above P8,000,000P2,410,000 + 35% of the excess over P8,000,000
Source:www.pinoymoneytalk.com
Lower income tax rates, with exemption for those earning P250,000 and below

In the approved tax reform bill under the Tax Reform for Acceleration and Inclusion (TRAIN) program:

Those earning an annual salary of P250,000 or below will no longer pay any income tax.

Those earning between P250,000 and P400,000 per year will be charged an income tax rate of 20% on the excess over P250,000.

Those earning annual incomes between P400,000 and P800,000 will pay a fixed amount of P30,000 plus 25% of the excess over P400,000.

Those with yearly salaries between P800,000 and P2 million will be charged a fixed amount of P130,000 plus 30% on the excess over P800,000.

High-income earners receiving salaries between P2 million and P8 million annually will pay a fixed amount of P490,000 plus 32% of the excess over P2 million.

Finally, the highest income tier receiving salaries of at least P8 million per year will have withholding taxes of P2.41 million plus 35% of the excess over P8 million.

All these will be implemented from 2018 until 2022, but beginning 2023, the rates will further fall.

TRAIN Income Tax Table (From Year 2023 onwards)

BIR Income Tax Rates – From Year 2023 onwards

BracketTaxable Income per YearTax Rate
1P250,000 and below0%
2Above P250,000 to P400,00015% of the excess over P250,000
3Above P400,000 to P800,000P22,500 + 20% of the excess over P400,000
4Above P800,000 to P2,000,000P102,500 + 25% of the excess over P800,000
5Above P2,000,000 to P8,000,000P402,500 + 30% of the excess over P2,000,000
6Above P8,000,000P2,202,500 + 35% of the excess over P5,000,000
Source:www.pinoymoneytalk.com
Personal Income Tax rates to be lowered further starting year 2023

From year 2023 onwards, the income tax rates will be further adjusted, as follows:

Those earning an annual salary of P250,000 or below will continue to be exempted from paying income tax.

Those earning between P250,000 and P400,000 per year will be charged a lower income tax rate of 15% on the excess over P250,000.

Those with annual salaries from P400,000 to P800,000 will have withholding taxes of P22,500 plus 20% of the excess over P400,000.

Salaried employees with annual incomes between P800,000 and P2 million will be charged a fixed amount of P102,500 plus 25% on the excess over P800,000.

Those receiving salaries between P2 million and P8 million per year will be charged P402,500 plus 30% of the excess over P2 million.

Finally, the highest income segment of employees with annual salaries of at least P8 million will pay P2.2025 million plus 35% of the excess over P8 million.

You must read these other awesome articles!







View Related Posts

Ask a question or post a comment

32 thoughts on “New TRAIN Tax Tables and BIR Income Tax Rates (2018)”

  1. Lourdes S. Ador says:

    Sir, are the non taxable income like gsis/philhealth premiums and personal exemption still be considered in computing our taxable income? Or only the gross annual compensation will be ou basis in computing our tax due?

    1. Edna M. Baligat says:

      Will the deduction for GSIS, Philheath and Pag-ibig fund be deducted from Gross Pay to arrive the taxable income?

  2. Chin says:

    Meron na po bang new tax table for daily, weekly, bi-monthly and monthly computation of tax on compensation?

  3. Debbie Gines says:

    Are the OFWs included?

  4. JEAL ROSE MINURTIO says:

    Good Day!

    magtatanong lang po sana ako kung ibabawas ba yong GSIS, PHILHEALTH AT PAGIBIG deduction?

    thank you po & God Bless…

    1. wilma says:

      opo. try niyo po mag visit sa site na ito:
      http://birtaxcalculator.com/calculator.php

  5. Marie says:

    for professionals like doctors, are we still eligle to use the 40% optional deduction in lieu of itemized expenses? or will the new scheme be applied to gross income?

  6. Phil says:

    Is there a specific industries that is exempted to income tax?. We actually belong to BPO industry. It is true that we are not included on that exemption though were earning under the category of 250k or below annually?

  7. Bel perez says:

    Pano po yung mga employees like with dependents? Base on the new taxation mas tataas po ang tax namin. So we wont benefit from it. Its like we are the ones who will shoulder the taxes due feom other people. Like in may case i will be paying additional 5k.

  8. Edna M. Baligat says:

    As per BIR 2018 Withholding Tax Table, Gross Income is used to compute for the monthly withholding tax.. Deductions for GSIS, Phil health and Pag-ibig fund are not considered in the computation of the monthly withholding tax.

  9. bibz says:

    I don’t understand. Your table is based on the Gross Income. E, ano pa hong use nung mga personal exemption & dependents? elimated na po ba?
    Thanks!

  10. asuncion reyes says:

    May deduction pa rin ba ang consultants na below 250,000 ang gross

  11. asuncion reyes says:

    if below 250,000 ang gross ng isang consultant may deduction pa rin ba! and ilang percent po ba ang computation.

    1. ble ble says:

      sa unang bracket sya na percent mag babase.. ksi 250,000 up pa rin sya

  12. MAUREEN says:

    Just asking if you know the answer for this. Our salary last January 11 2018, the company still deducted 30% on our withholding tax, katwiran cutoff is December 16 to 31st. Tama po ba un?

    1. Darrell says:

      yup tama po un…kasi po earnings mo sya ng 2017..

    2. boss says:

      sa amin wla na kmi deduction..ganyan din cut off namin..bka binulsa na yan hahah

    3. Emil says:

      Cash basis po ang tax, which means that since nabayaran po kayo ng January, applicable na TRAIN law sa inyo.

  13. Jessa Mae F. Cornel says:

    Mga government Job orders po ba may tax pa po?

  14. Angie says:

    Sir, i observed that you used 3 different column headings in the 3 Tax Tables shown above, as follows– “Annual Income”, “Gross Income Per Year”, “Income Per Year”. Shouldn’t the heading be “Net Taxable Income”?

    1. boss says:

      no

  15. cynthia schaerer says:

    on semi monthly tax table pag ang basic mo ay naging 12k includes overtime may tax na po ba?

    1. boss says:

      wla po

  16. bert says:

    ako JO ako. may tax kami ng 5% kasi daw professional kami.

    1. boss says:

      tama

  17. Sonya says:

    BAKIT MAY MGA FIXED VALUES PA NABABAYARAN ANG TAX PAYERS IBA PA YONG PERCENTAGE NA BABAYARAN KUNG SOBRA SA MAXIMUM KINITA. BAKIT DI NA LANG YONG PERCENTAGE. YON LANG PERCENTAGES AY MALAKI NA NA . WALA MAN LANG NAGREACT SA TRAIN TAX LAW NA GINAWA NILA

  18. Mel says:

    Hi! Just wondering if we are still required to use the ebir forms for this years filingnof annual ITR. I downloaded it and the tax rates were not yet updated. Theyre still using the old version with no change in tax rate as indicated by TRAIN law. Tnx

  19. jb says:

    what forms should be filed if your a professional and opted for the graduated tax . do you still file the same 2551 M at 3% monthly and 1701 Q at 5% quarterly.

  20. jen cordero says:

    the filing for the 2017 ITR is the same as last year? meaning TRAIN law applies only for earnings 2018 and beyond? thanks

  21. Maria Melanie pontevedra says:

    Single proprietor po ako at ng availed ng 8% income tax -train law.ask ko lng kung mag file p ba ako ng quarterly now? Tnx

  22. ck says:

    Hi, I am a self-employed too and Im going to declare my income for the first time by jan or feb.. So technically only my income for the last quarter of this year will be declared. Please let me know if my computation is correct. I have Graduated OT -OSD.
    Say for example monthly income of P75000 x 3 (oct-dec2018) =P225000
    Since it’s below 250k lieu then it will be exempted from annual tax. Right?

  23. Eavuh says:

    Is personal exemptions 2305 honor if you’re 258k annual earner?

Leave a Reply

Your email address will not be published. Required fields are marked *