Revised Income Tax Table for 2023

01 February 2023

TRAIN Law increases take-home pay in the new Income Tax Table for 2023.

Good news arrives for Filipino employees, as the Tax Reform for Acceleration and Inclusion (TRAIN) Law has implemented an increased take-home pay for 2023, along with a reduction to the worker’s personal income taxes. The revisions to the TRAIN Law now decree that employees earning solely from compensation income and have a total taxable earning of less than 8 million yearly will receive lower taxes ranging from
15% to 30% beginning January 1, 2023.

Additionally, those who have a taxable income higher than 8 million will get a
3% increase in their tax rate, going from 32% to 35%.

Income Tax Rate Table in 2023

The new Income Tax Table applicable from 2023 onwards can be seen below:

Annual Income

Tax Rate

PHP 250,000 and below

None (0%)

Above PHP 250,000 to PHP 400,000

15% of the excess over PHP 250,000

Above PHP 400,000 to PHP 800,000

PHP 22,500 + 20% of the excess
over PHP 400,000

Above PHP 800,000 to PHP 2,000,000

PHP 102,500 +25% of the excess
over PHP 800,000

Above PHP 2,000,000 to PHP 8,000,000

PHP 402,500 +30% of the excess
over PHP 2,000,000

Above PHP 8,000,000

PHP 2,202,500 +35% of excess
over PHP 8,000,000

Sources: BIR and