Withholding Tax Calculator

Withholding tax is an advance payment of your annual income tax, collected by your employer at the time of payment. The BIR requires employers to withhold a portion of your gross compensation and remit it to the government. This ensures timely tax collection and reduces the risk of non-payment. The amount withheld is credited against your total annual income tax liability when you file your annual Income Tax Return (ITR). If you over-pay through withholding, you may claim a refund.

Withholding tax on compensation is calculated using the BIR's 2023-onwards Withholding Tax Table (RR 11-2018 Annex E), based on: (1) your gross compensation for the period and (2) your pay period (monthly or semi-monthly). Since the TRAIN Law took effect in 2018, the table no longer varies by civil status—single, married, and head-of-family employees use the same brackets. Pay up to ₱20,833 per month is withholding-exempt; above that, the brackets run 15% to 35%. For expanded withholding tax, a flat statutory rate (for example 5% or 10% on professional fees) is applied to the gross payment. The calculator applies the correct table or rate automatically based on your inputs.

Withholding tax on compensation (WTC) is deducted by the employer from salary or wages at each pay period using the graduated Annex E table (NIRC Sec 79); it is remitted on BIR Form 1601-C and certified year-end on Form 2316. Expanded withholding tax (EWT) on professional fees is deducted by the payor (client) at a flat rate—5% or 10% for individuals, 10% or 15% for corporations (RR 11-2018 Sec 2.57.2)—and certified on Form 2307. EWT is a creditable tax under NIRC Sec 57(B): the professional claims it as a credit on their own income tax return. Use the calculator to select the correct withholding type for accurate results.

Yes. If your total withholding tax throughout the year exceeds your annual income tax liability, you may claim a refund when you file your annual Income Tax Return (ITR). The refund is processed by the BIR, typically within 30–90 days of filing. Alternatively, you may request that the excess be credited to your tax liability for the next year. Ensure you file your ITR on time and attach all withholding tax certificates (BIR Form 2316 for compensation, Form 2307 for creditable expanded withholding on professional fees).

Each employer withholds independently based on your gross compensation from that employer alone. This can result in over-withholding if your combined income from all employers is lower than the sum of individual withholdings. When you file your annual ITR, report all withholding taxes from all employers and claim them as credits. You may be entitled to a refund of excess withholding. Alternatively, you may request a Certificate of Exemption (COE) from one employer if your primary income is below the taxable threshold.

It depends on whether the non-resident alien is engaged in trade or business in the Philippines. A non-resident alien NOT engaged in trade or business (NRA-NETB) is subject to a flat 25% withholding on gross Philippine-source income under NIRC Sec 25(B). A non-resident alien engaged in trade or business (NRA-ETB)—including one employed here for an extended period—is taxed at the same graduated rates as residents (NIRC Sec 25(A)), so the regular Annex E withholding table applies. Confirm the alien's classification before applying a rate.

When filing your annual ITR, report all withholding taxes credited during the year. For compensation, obtain the Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) from your employer. For professional fees and other income payments subject to expanded withholding, obtain the Certificate of Creditable Tax Withheld at Source (BIR Form 2307) from each payor. Enter the total as a tax credit on your ITR. The BIR compares your total withholding against your annual tax liability and processes any refund or additional tax due.

No. The TRAIN Law (RA 10963) repealed personal and additional exemptions effective January 1, 2018. There is no longer a ₱30,000 (or ₱50,000) personal exemption, and withholding no longer varies by civil status or number of dependents. Instead, the first ₱250,000 of annual taxable income—₱20,833 per month—is taxed at 0% and is built directly into the Annex E withholding table. Above that threshold, the brackets run from 15% to 35%. The only amounts you exclude before applying the table are the employee's mandatory SSS, PhilHealth, and Pag-IBIG contributions.

Yes, but only in specific circumstances. A Certificate of Exemption (COE) may be requested if your income from a particular employer is below the taxable threshold (₱250,000 annually for most taxpayers). If approved, that employer will not withhold tax from your compensation. However, you must still file an annual ITR if your total income from all sources exceeds the taxable threshold. Consult the BIR or your employer's HR department for the application process.

If your employer withholds less than the required amount, you may owe additional tax when you file your annual ITR. The BIR may also assess penalties and interest against your employer for under-withholding. If your employer withholds more than required, you may claim a refund on your ITR. Always verify that your employer is using the current 2023-onwards Annex E table and your correct pay period. If you believe there is an error, contact your employer's payroll department or the BIR.

You should verify your withholding tax calculation at least annually, especially if your pay period or gross compensation changes. Use this calculator to estimate your withholding for the current year and compare it to your expected annual tax liability. If there is a significant difference, contact your employer to adjust your withholding or plan for additional tax payments. Review your Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) before the annual reconciliation to ensure accuracy.

Yes—the employee's mandatory SSS, PhilHealth, and Pag-IBIG contributions are non-taxable and are excluded from taxable compensation before the withholding table is applied (NIRC Sec 32(B)(7)(f)). There are no personal exemptions: TRAIN repealed them in 2018, replacing them with the ₱250,000 annual (₱20,833 monthly) zero-tax bracket already built into the Annex E table. Voluntary deductions such as employee loans or cooperative dues are not subtracted before computing withholding. The table is designed so that total annual withholding closely approximates your final income tax liability.