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Old BIR Income Tax Rates vs. New Income Tax Tables under TRAIN




The new personal income tax rates are now in effect starting January 1, 2018 after the approval of the TRAIN tax reform.

Compared to the old tax rates which were in use until the end of 2017, the new tax rates implemented by the Bureau of Internal Revenue (BIR):

  1. streamlined the income tax brackets and reduced the brackets to six (6);
  2. adjusted upwards the taxable income threshold per bracket;
  3. revised the tax rate charged on each taxable income bracket;
  4. raised the annual gross income eligible for tax exemption; and
  5. removed the personal exemption (P50,000) and additional exemptions (maximum of P100,000 if taxpayer has four dependents)

Under the new income tax reform, salaried individuals earning gross compensation of P250,000 or below per year are exempted from paying income taxes. This is a drastic change from the past, wherein only the minimum wage earners were exempted.

In addition, the new BIR tax reform removed the personal exemption — amounting to P50,000 — and additional exemption of P25,000 per qualified dependent — maximum of 4 dependents, so maximum of P100,000 additional exemptions — enjoyed by taxpayers in the old system.



Here are the BIR income tax tables from the old system and the new system.

Old BIR Income tax Rates (Used until 2017)

BracketIncome per YearTax Rate
1P10,000 and below5%
2Above P10,000 to P30,000P500 + 10% of the excess over P10,000
3Above P30,000 to P70,000P2,500 + 15% of the excess over P30,000
4Above P70,000 to P140,000P8,500 + 20% of the excess over P70,000
5Above P140,000 to P250,000P22,500 + 25% of the excess over P140,000
6Above P250,000 to P500,000P50,000 + 30% of the excess over P250,000
7Above P500,000P125,000 + 32% of the excess over P500,000
Source:www.pinoymoneytalk.com

New BIR Income Tax Rates, from TRAIN Tax Reform (2018-2022)

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

New BIR Income Tax Rates, from TRAIN Tax Reform (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

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About this post: compare old tax to new tax bracket, corporate tax old vs new, how is the train law different from the former tax law, income tax comparison old new train, income tax table ph

One thought on “Old BIR Income Tax Rates vs. New Income Tax Tables under TRAIN”

  1. molly says:

    how to compute my income tax in semi monthly?, my basic salary 10,000.00+ OT 392.34+ Holiday 1,195.40 less SSS 581.30

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