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Philippines tax guide 2026
The Philippines runs a 0-35% income tax with the first PHP 250,000 free, and it treats foreign residents unusually well: a resident alien pays Philippine tax only on Philippine income, never on earnings from abroad. A 2025 capital-markets law cut the stock-trade tax to 0.1%, estates and gifts pay a flat 6%, and small self-employed earners can settle everything with an 8% flat tax.
- Rate range
- 0% – 35%
- Key allowance
- First PHP 250,000 tax-free; 13th-month pay and benefits exempt up to PHP 90,000
- Tax year
- Calendar year
- Filing deadline
- 15 April of the following year
Taxes covered
- Income tax35%
Six bands from 0% to 35%; the top rate starts above PHP 8 million and there are no surcharges.
- Dividend tax10%
Philippine dividends carry a 10% final withholding for residents; foreign dividends hit the 0-35% scale — but only for citizens.
- Capital gains tax15% / 6% / 0.1%
Unlisted shares pay 15% on the gain, real property a 6% final tax on the price, and listed shares just a 0.1% transaction tax.
- Crypto tax0–35%
No dedicated crypto tax exists — gains join ordinary income, with only half the gain counted after a 12-month hold; traders and miners pay full income rates.
- Social security≈7.5%
Employees pay 5% to the Social Security System (capped), 2.5% to PhilHealth (capped) and up to PHP 200 to the housing fund — about PHP 4,450 a month at most.
- Inheritance tax6%
Estates pay a flat 6% on the net estate after a PHP 5 million standard deduction and up to PHP 10 million for the family home; gifts pay 6% above PHP 250,000 a year.
- Withholding tax25%
Short-stay non-residents pay a 25% final tax on gross Philippine income; residents live with 20% on interest, 10% on dividends and assorted creditable withholdings.
Special regimes
- Foreign residents: local income only
Resident aliens pay Philippine tax only on Philippine-source income — foreign salaries, dividends and gains stay outside the net; only resident citizens are taxed worldwide.
- 8% flat tax for small business
Self-employed people and professionals with receipts up to PHP 3 million can pay a flat 8% on gross receipts above PHP 250,000 instead of the scale and percentage tax.
- Flat 6% estate and gift taxes
Estates pay 6% after a PHP 5 million standard deduction (family home up to 10 million more); gifts pay 6% above PHP 250,000 a year.
- Cheap stock trading
Selling listed shares costs a 0.1% transaction tax instead of income tax — cut from 0.6% by the 2025 capital-markets law.
- Retirement account perks
Personal Equity and Retirement Account (PERA) savers get a 5% tax credit on contributions up to PHP 200,000 a year (400,000 for overseas Filipinos) and tax-free investment income.
Recent changes
- 2025-07The capital-markets law took effect: stock transaction tax fell from 0.6% to 0.1%, interest income moved to a uniform 20% withholding (the old long-term deposit exemption ended), the 15% gains tax now covers unlisted foreign shares, and mutual-fund redemptions became exempt.
- 2025-01The Social Security System rate rose to 15% (employee share 5%) and the salary-credit ceiling to PHP 35,000, lifting the maximum employee contribution to PHP 1,750 a month including the provident tier.
- 2024-01PhilHealth premiums reached 5% on salaries up to PHP 100,000, the Pag-Ibig housing fund's contribution base rose to PHP 10,000 from February, and e-filing became the default under the ease-of-paying-taxes law.