1. What is the BIR Salary Tax?

The BIR (Bureau of Internal Revenue) Salary Tax is the income tax imposed on compensation income earners in the Philippines. The tax rates are progressive, meaning higher income is taxed at higher rates.

2. How Does the Calculator Work?

The calculator uses the 2024 BIR tax brackets:

Where:

• Different tax brackets apply based on filing status (Single, Married, Head of Family)
• Tax rates range from 0% to 35%
• Each bracket has a specific threshold and corresponding rate

Explanation: The calculator determines which tax bracket the salary falls into and applies the appropriate tax computation.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensures compliance with tax laws, and helps avoid penalties for underpayment.

4. Using the Calculator

Tips: Enter your annual salary in PHP and select your filing status. The calculator will compute your tax due based on 2024 BIR rates.

5. Frequently Asked Questions (FAQ)

Q1: What are the tax brackets for 2024?
A: For single filers: 0-250k (0%), 250k-400k (15%), 400k-800k (20%), 800k-2M (25%), 2M-8M (30%), 8M+ (35%).

Q2: Are there deductions available?
A: Yes, the calculator uses taxable income after the standard deduction of ₱250,000 for single filers and ₱500,000 for married/head of family.

Q3: When are taxes due?
A: Taxes are typically filed annually by April 15 of the following year, though employers usually withhold taxes monthly.

Q4: What if I have multiple income sources?
A: This calculator is for compensation income only. Other income types may have different tax treatments.

Q5: Are there tax credits available?
A: Yes, certain tax credits may apply but are not accounted for in this basic calculator.