Freelancer Tax Calculator (Philippines)
Compare the 8% flat rate against graduated income tax on freelance earnings, including the mixed-income case where you have both a salary and freelance income.
8% flat tax
₱60,000.00
8% × (₱1,000,000.00 − ₱250,000.00 deduction)
Graduated + 3% percentage tax
₱92,500.00
Income tax ₱62,500.00 + percentage tax ₱30,000.00
8% flat tax looks cheaper for these numbers, by an estimated ₱32,500.00.
8% option: NIRC Sec. 24(A)(2)(b) as amended by TRAIN Law, ₱250,000 deduction (pure self-employed only), available up to ₱3,000,000 gross receipts. Graduated: same TRAIN Law bracket table used for compensation income, plus 3% percentage tax on gross receipts (NIRC Sec. 116) — effective 2026.
This is an estimate for planning purposes only, not tax advice. Verify with BIR or an accountant, especially before switching tax regimes — the 8% election is generally binding for the taxable year once made.
Frequently asked questions
- Should I choose the 8% flat rate or graduated rates?
- It depends on your income level and your deductible expenses. The 8% flat rate is applied to gross receipts above the statutory exemption with no expense deductions and replaces both income tax and percentage tax, which makes it simpler and usually cheaper for service freelancers with low costs. Graduated rates allow you to deduct real expenses, so they can win if your costs are substantial.
- What is the mixed-income case?
- When you have both employment income and freelance income in the same year. This is the branch that trips most people up: the statutory exemption that applies to the 8% option is already consumed by your employment income, so the 8% is applied to your full freelance gross with no exemption. Getting this wrong understates the tax owed.
- Can I switch between 8% and graduated rates?
- The election is made for the taxable year and is generally irrevocable for that year, so it is worth modelling before you commit rather than after. Your circumstances can change the better option year to year.
- Does the 8% rate cover percentage tax too?
- Yes — that is a large part of its appeal. The 8% option is in lieu of both graduated income tax and the percentage tax on gross receipts, which is why comparing it against graduated rates alone understates its advantage.
- Do I still need to file if I owe nothing?
- Yes. Registration and filing obligations are separate from whether tax is due, and missed filings attract penalties even on a zero return.
Estimates only — not tax, legal or financial advice. Rules change and individual circumstances vary; confirm with the relevant agency or a qualified professional before acting on a figure. Tool build 2026-07-27.1.