If you’re working, freelancing, or running a small business in the Philippines, understanding the latest BIR Income Tax Table for 2026 is essential. Taxes can be confusing, but knowing how much will be deducted from your income helps you budget wisely, secure your savings, and stay compliant with Philippine tax laws.

In this guide, we break down the updated 2026 income tax rates in a simple and friendly way so you can plan ahead and avoid surprises on your payslip.

Latest BIR Income Tax Table 2026 Philippines

Starting January 1, 2026, the Philippines will continue the implementation of the TRAIN Law adjustments. These updated tax brackets aim to give Filipino workers more take-home pay, especially for those in the lower and middle-income brackets.

Source: BIR

What This Means for Filipino Workers

The 2026 tax table benefits many Filipinos through lower taxes and higher take-home pay. Here’s what you can expect:

Bigger Take-Home Pay

Employees earning below ₱20,833 monthly will continue to pay zero income tax, allowing more room for savings, investments, and everyday expenses.

Easier Planning for Freelancers and Self-Employed

If you’re a freelancer or self-employed, understanding the 2026 rates makes it easier to compute quarterly taxes, manage receipts, and project your income for the year.

Aligns with Long-Term TRAIN Law Reductions

2026 is part of the final adjustment phase under the TRAIN Law, meaning taxes will remain more favorable than previous years.

How to Compute Your Income Tax

Here’s an easy 3-step way to estimate your income tax for 2026:

Identify your taxable income
Deduct SSS, PhilHealth, Pag-IBIG, and allowable deductions.
Check your tax bracket
Use the table above to find where your income fits.
Compute the excess
Apply the formula in the tax table based on your bracket.

Final Tips to Stay Tax Ready in 2026

Always check updated BIR advisories.
Keep all receipts if you’re self-employed.
Review your payslip monthly.
Use digital wallets or banking apps to document income.
Explore features on lifeguide.ph for more finance templates and tax-saving guides.

For more helpful finance articles, salary guides, and tax calculators, visit lifeguide.ph and stay updated with the latest 2026 changes in the Philippines.