2019 TRAIN Tax Tables and BIR Income Tax Rates


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 adopted 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.

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35 thoughts on “2019 TRAIN Tax Tables and BIR Income Tax Rates”

  1. Would like to inquire, last postings under this site was a Train Law sample computation on monthly basis.
    With regards to Annual computation, does the 2 classification of compensation matters for annual computation. ( REGULAR AND SUPPLEMENTARY COMPENSATION)?

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