Philippines Tax Calculator (2026) — Add or Reverse Tax
Philippines charges a 12% VAT, a 25% corporate tax rate, and a 35% top personal income tax rate.
How to use this calculator:
- Purchase mode — add VAT to a pre-tax price, or reverse a tax-included total to find the pre-tax price and exact tax paid.
- Profit / salary modes — enter an amount to see the corporate tax owed or a ceiling estimate of personal tax at the top marginal rate.
Understanding Philippines's Tax System
Philippines levies VAT at a standard rate of 12%. Its statutory corporate income tax rate is 25%, above the 23.37% global average. The top personal income tax rate is 35%.
Region
Asia
VAT rate
12%
vs. world average corporate rate
+1.6 points above the 23.37% global average
Why Reverse Tax Calculation Matters
Receipts and invoices usually show only the tax-included total — not the pre-tax price. Reversing the calculation matters for bookkeeping, expense claims, and cross-border price comparisons. Because dividing by (1 + rate) isn't the same as simply subtracting the rate, doing this by hand is a common source of errors — select "Reverse" in the purchase-mode calculator above to handle it exactly.
History & Context
The Philippines' VAT rose from 10% to 12% in 2006 under Republic Act 9337. On the corporate side, the 2021 CREATE Act cut the standard corporate rate from 30% to 25% (with a lower 20% rate for small companies), and the 2024 CREATE MORE Act cut it further to 20% for registered business enterprises benefiting from enhanced deduction incentives.
The CREATE and CREATE MORE Acts together represent one of the largest corporate tax rate reductions in the Philippines' modern history, deliberately designed to make the country more competitive for foreign direct investment after the rate had sat at a comparatively high 30% for years.
Business Use Case
A small Philippine company with net income under ₱5 million and total assets under ₱100 million pays just 20% corporate tax under CREATE, while a registered business enterprise under CREATE MORE's enhanced deduction regime can also reach 20% — two different paths to the same reduced rate depending on company size versus registration status.
Real-World Examples
VAT on a purchase
A ₱1,000.00 purchase in Philippines at 12%:
- Tax: ₱1,000.00 × 12% = ₱120.00
- Total: ₱1,120.00
Corporate tax on profit
₱1,000.00 in company profit in Philippines at 25%:
- Tax: ₱1,000.00 × 25% = ₱250.00
- After-tax profit: ₱750.00
Frequently Asked Questions — Philippines Taxes
What is the VAT rate in Philippines?▾
What is the corporate tax rate in Philippines?▾
What is the top personal income tax rate in Philippines?▾
How is tax calculated on a purchase in Philippines?▾
How do I reverse Philippines's VAT to find the price before tax?▾
References & Sources
Rates last verified for 2026. Tax rates change through national budgets — always confirm current figures with a qualified local tax advisor before making business or relocation decisions. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.
Jordan Hayes
Verified AuthorLead Content Editor & Personal Finance Specialist
Jordan Hayes is a personal finance content strategist with 9+ years building educational finance and health resources. He has written and fact-checked over 200 personal finance guides covering mortgage amortization, retirement planning, tax strategy, and budgeting. His work applies IRS publications, Federal Reserve data, and peer-reviewed research to make complex calculations accessible.