Rental income tax calculator (Philippines)
Estimate the income tax on your rental earnings and compare the 8% option against the graduated TRAIN rates. An educational estimate with a clear breakdown, not a filing computation.
How the estimate works
- Graduated rates. Your net rental income (gross rent less allowable expenses) is added to taxable income and taxed at 0% up to 250,000 pesos, rising to 35% at the top bracket, plus the 3% percentage tax on gross if you are non-VAT.
- The 8% option. If gross receipts are 3 million pesos or below, you may instead pay 8% on gross receipts above 250,000 pesos, replacing both the graduated tax and the percentage tax.
- VAT. Residential units renting at 15,000 pesos or below per month are VAT-exempt. Above the 3 million annual threshold, 12% VAT can apply.
For the full picture, including BIR registration, deadlines, and what counts as an allowable expense, read the complete guide to rental income tax in the Philippines. OFW landlord? The rules for non-resident citizens are covered in the OFW landlord guide.
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Sources & further reading
- Bureau of Internal Revenue, income tax guidance at bir.gov.ph.
- National Internal Revenue Code as amended (TRAIN, RA 10963), on LawPhil.
- Related guides: rental income tax guide, association dues and your real net.
This calculator gives a general educational estimate, not tax advice. Confirm your actual computation with the BIR or a tax professional.