Philippines freelancer tax calculator

See which regime costs you less tax — the 8% flat rate, or the graduated income tax plus the 3% percentage tax.

Annual gross income (₱)Deductible expenses (₱)These lower your tax under the graduated option only — the 8% flat rate is on gross.

8% flat

Lower tax

Annual tax

₱76,000

8% of your gross income over ₱250,000. Replaces both income tax and percentage tax; expenses aren't deductible.

Graduated + 3%

Annual tax

₱163,500

Income tax ₱127,500 on your net income (gross − expenses), plus 3% percentage tax ₱36,000 on gross.

The 8% flat option is lower here — about ₱87,500 less tax per year.

Estimate only, not tax advice. Uses TRAIN-law graduated rates (2023 onward), the 8% option on gross over ₱250,000, and the 3% percentage tax for non-VAT taxpayers. It doesn't include the 40% Optional Standard Deduction, personal/dependant deductions, or SSS / PhilHealth / Pag-IBIG contributions.

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