A · Supplemental Illustration Center
Online-exclusive visual guides
1. The 2026 graduated table (TRAIN Phase 2 — 2023 onwards)
| Taxable income | Tax due |
|---|---|
| ₱0 – ₱250,000 | 0% |
| ₱250,001 – ₱400,000 | 15% of excess over ₱250,000 |
| ₱400,001 – ₱800,000 | ₱22,500 + 20% of excess over ₱400,000 |
| ₱800,001 – ₱2,000,000 | ₱102,500 + 25% of excess over ₱800,000 |
| ₱2,000,001 – ₱8,000,000 | ₱402,500 + 30% of excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of excess over ₱8,000,000 |
2. The self-employed taxpayer's three roads
Road A
Graduated + itemized: Revenue − actual invoice-supported expenses = taxable income → table. Best when real expenses are heavy.
Road B
Graduated + 40% OSD: Revenue × 60% = taxable income → table. No expense substantiation needed.
Road C
8% option (non-VAT, gross sales ≤ ₱3M): (Revenue − ₱250,000) × 8%. One computation — and the 3% percentage tax is waived.
The hidden trade-off: a non-VAT taxpayer on graduated rates pays income tax AND 3% percentage tax; choosing 8% waives the percentage tax. Compare TOTAL outflows, not just income tax. Compensation earners can't use the 8% option.
3. Who files what
| Taxpayer | Rates available | Percentage tax? |
|---|---|---|
| Pure compensation earner | Graduated only (employer withholds) | No |
| Self-employed / professional, non-VAT ≤ ₱3M | Graduated (itemized or OSD) or 8% | 3% if graduated; waived if 8% |
| Self-employed, above ₱3M | Graduated only — 8% not available | No — VAT-registered instead (12%) |
| Mixed income earner | Graduated on compensation; choice applies to business income only | Per business income rules |
B · Interactive Workspaces
Practice tools
Tool 1 · Three-road tax comparator
Enter a self-employed professional's year — see all three options side by side, including the percentage-tax effect.
C · Online-Exclusive Assessment