Country tax profile · 2026
Philippines income tax
How Philippines taxes income
Philippines taxes personal income at rates up to 35%. Foreigners, resident or not, are taxed ONLY on Philippine source income: foreign income is EXEMPT. Only resident Philippine citizens are taxed on worldwide income.
Compiled by MyNomadWorld for Philippines and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
Philippines income tax brackets (2026)
| Taxable income | Rate |
|---|---|
| up to 250,000 PHP | 0% |
| up to 400,000 PHP | 15% |
| up to 800,000 PHP | 20% |
| up to 2,000,000 PHP | 25% |
| up to 8,000,000 PHP | 30% |
| over the top bracket | 35% |
National brackets; local or regional surcharges may apply on top.
How Philippines's income tax compares
Philippines's top income tax of 35% is the 59th highest of the 197 countries we track, against a global average of 27.9% and a Asia average of 23.4%.
Countries with a similar income tax
Gabon (35%) · Iran (35%) · Niger (35%) · Sierra Leone (35%) · Togo (35%) · Cyprus (35%)
Who is a tax resident of Philippines?
Aliens are taxed only on Philippine-source income regardless of residence. An alien present >180 days is a resident/non-resident engaged in trade (graduated rates); citizenship/residence does not extend PH tax to foreign income for non-citizens.
Related Philippines taxes
Moving to Philippines?
Get matched with a vetted Philippines tax & immigration advisor who handles residency and the exit from your current country.
See advisors →Philippines income tax FAQ
What is the income tax rate in Philippines?
Philippines taxes personal income at rates up to 35%. Foreigners, resident or not, are taxed ONLY on Philippine source income: foreign income is EXEMPT. Only resident Philippine citizens are taxed on worldwide income.
Can expats pay less income tax in Philippines?
Yes. Under the Territorial (resident alien) regime, qualifying new residents pay about 0.0% instead of the 35% headline rate.