13th month pay tax calculator
Your 13th month pay and other benefits are tax-free up to ₱90,000 a year in total. Only the excess is taxed.
Enter your bonuses for the year and your other taxable pay to see the tax on the part above the ceiling.
How it's calculated
- Add your 13th month pay and your other bonuses and benefits for the year.
- Up to ₱90,000 of that total is tax-free.
- The excess is added to your other taxable compensation. The extra tax it creates is the tax on your bonuses.
An example
With ₱150,000 of bonuses and ₱600,000 of other taxable pay, ₱90,000 is tax-free and ₱60,000 is taxed at 20%. You pay ₱12,000 and keep ₱138,000.
Frequently asked questions
Is the 13th month pay tax-free?
Yes, up to ₱90,000 a year. The ceiling covers the 13th month pay and other benefits together, not each one on its own.
What counts as other benefits?
The rules name productivity incentives and the Christmas bonus. De minimis benefits are a separate category of non-taxable benefits.
How is the taxable part taxed?
It is added to your compensation and taxed with the graduated rates, so it pays the rate of the bracket it lands in.
Key terms
- 13th month pay
- The yearly benefit required by Presidential Decree No. 851, as amended.
- De minimis benefits
- Small benefits that the BIR excludes from taxable compensation. They are listed apart from the 13th month pay and other benefits.
Up-to-date official data
Data checked against the official source on .
We check the official sources automatically, every day.
See all sources