New BIR Tax Tables for 2023

Onwards

The new year 2023 is fast approaching. Many are looking forward to a new start.
One of the things we can look forward is the lower income tax rate for individual citizen and
resident alien (foreigner) effective January 2023.

It must be recalled that Republic Act (RA) 10963 Tax Reform for Acceleration and Inclusion, also
known as TRAIN Law, has amended Section 24 of the National Internal Revenue Code (NIRC)
which pertains to the Income Tax Rate for Individual.

The act stated two schedule of new income tax rate as follows:

a) Effective January 1, 2018 to December 31, 2022

b) Effective January 1, 2023 and onward

Because of this change on income tax rate, withholding tax rate on employee’s compensation will
likewise change.

Under Revenue Regulation (RR) 11-2018 Annex E

(https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202018/
RR%20No.%2011-2018/Annex%20E%20RR%2011-2018.pdf), the new schedule of withholding tax
on compensation effective January 1, 2023 and onward is as shown below.

There are too many rules to remember in computing payroll which means there is a high posibility of
error and can be costly especially if accumulated overtime. For only 56 pesos per employee, you
can automate these rules and processes so you can spend more time on more important things.

Check it out (/payroll-

outsourcing-services-
philippines/)
Withholding Tax Table for 2023 Onward
Payroll Frequency Bracket/Column From To Fix Tax Tax Rate on Excess

Daily 1 0 685 0 0

2 685 1,095 0 15%

3 1096 2191 61.65 20%

4 2,192 5,478 280.85 25%

5 5,479 21,917 1,102.6 30%

6 21,918 and above 6,034.3 35%

Weekly 1 0 4,808 0 0

2 4,808 7,691 0 15%

3 7,692 15,384 432.6 20%

4 15,385 38,461 1,971.2 25%

5 38,462 153,845 7,740.45 30%

6 153,846 and above 42,355.65 35%

Payroll Frequency Bracket/Column From To Fix Tax Tax Rate on Excess

Semi-monthly 1 0 10,417 0 0

2 10,417 16,666 0 15%

3 16,667 33,332 937.5 20%

4 33,333 83,332 4,270.7 25%

5 83,333 333,332 16,770.7 30%

6 333,333 and above 91,770.7 35%

Monthly 1 0 20,833 0 0

2 20,833 33,332 0 15%

3 33,333 66,666 1,875 20%

4 66,667 166,666 8,541.8 25%

5 166,667 666,666 33,541.8 30%

6 666,667 and above 183,541.8 35%

Annual Income Tax Table for 2023 Onward
Bracket From To Fix Tax Rate on Excess

1 0 250,000 0 0

2 250,000 400,000 0 15%

3 400,000 800,000 22,500 20%

4 800,000 2,000,000 102,500 25%

5 2,000,000 8,000,000 402,500 30%

6 8,000,000 and above 2,202,500 35%

2023 Withholding Tax and Annual Income Tax Table in Excel

Files
To help you compute multiple withholding and annual income taxes on multiple employees, we
prepared the tax tables in excel files. Please note that in the following excel files, the tax rate is
displayed in decimal form instead of percentage for your easier computation.

Download Withholding Tax Table for 2023 (https://mpm.ph/wp-content/uploads/2022/12/bir-wtax-

table-2023.xlsx)

Download Annual Income Tax Table for 2023 (https://mpm.ph/wp-content/uploads/2022/12/bir-

annual-income-tax-table-2023.xlsx)
Automate Your Tax Computation
You can automate your withholding tax and annual income tax this 2023 and the years to come
without worrying on tax table update using MPM Payroll Software (https://mpm.ph/payroll-software-
service/). You can use it for free for 30 days.

There are too many rules to remember in computing payroll which means there is a high posibility of
error and can be costly especially if accumulated overtime. For only 56 pesos per employee, you
can automate these rules and processes so you can spend more time on more important things.

Check it out (/payroll-

outsourcing-services-
philippines/)

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 About Jayson Yanuaria

He is in the IT and software development industry for almost 2 decades. Building payroll, hris,
accounting and other enterprise software solutions.

Trackbacks
2023 SSS Table for Employer and Employee (https://mpm.ph/2023-sss-table/) says:
December 29, 2022 at 08:09 (https://mpm.ph/bir-tax-tables-2023/#comment-143027)

[…] this upcoming new year 2023 will be the payroll deductions related changes such as with
change in Income Tax Rate, Withholding Tax Compensation Rate, Philhealth Contribution Rate,
and SSS Contribution […]

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