Why You Need a Tax Calculator in the Philippines (2025)
Filing taxes in the Philippines can feel overwhelming — from figuring out which form to use, to knowing how much to pay.
That’s why many Filipinos search for a “tax calculator” online. But here’s the thing:
A tax calculator only shows you numbers. A tax software goes beyond that — it computes, prepares, files, and even lets you pay your taxes.
🙋♀️ Why We Created Taxumo
When my co-founders and I built Taxumo, it was out of frustration with the complexity and the tedious process of filing taxes in the Philippines during that time. As freelancers, entrepreneurs, and small business owners ourselves, we experienced firsthand the confusing forms, long lines at the BIR, unclear deadlines, and penalties from tiny mistakes.
We wanted a better, simpler way to manage taxes — one that doesn’t require being an accountant or tax expert. That’s why we created Taxumo: an all-in-one tax software that computes, prepares, files, and even lets you pay taxes online. It’s everything we wished we had when we were starting out, now built for every hardworking Filipino entrepreneur, freelancer, and professional.
In 2025, with more freelancers, micro and small business owners, and online sellers in the Philippines, a tax software like Taxumo offers an all-in-one solution that saves time, avoids errors, and helps you stay compliant.
📊 Updated Tax Rates for 2025 (Philippines)
Here are the tax rates you need to know:
Income Tax Table (2025) (based on TRAIN Law)
| Taxable Income (Php) | Tax Due |
|---|---|
| ₱250,000 and below | 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 |
✅ Percentage Tax: 3% (for non-VAT taxpayers earning under ₱3 million annually)
✅ VAT Threshold: ₱3 million (If gross receipts exceed ₱3 million, you must register for VAT). VAT is 12% in the Philippines.
✍️ How to Compute Taxes Manually
Let’s say you earned ₱500,000 in gross income as a freelancer:
- If you opt for the 8% flat tax:
- Tax = 8% x (₱500,000 – ₱250,000)
- Tax = 8% x ₱250,000
- Tax = ₱20,000
- If you don’t opt for 8% (graduated income tax + percentage tax):
- Percentage Tax = 3% x ₱500,000 = ₱15,000
- Taxable Income = ₱500,000 – allowable deductions if using itemized deduction (or optional 40% OSD)
- Compute using tax table above
👉 And you’ll need to repeat this per quarter, update depending on income/expenses, and use different forms (1701Q, 1701A, etc.)
Sounds complex? That’s where tax software comes in.
Common Mistakes in Manual Tax Computation
Many taxpayers who pay taxes in the Philippines make these errors:
- Forgetting allowable deductions
- Forgetting to file if tax dues are zero
- Applying wrong tax rate
- Missing deadlines (which triggers penalties and surcharges)
- Filing the wrong form
- Forgetting to include other taxable income sources
- Forgetting to submit these attachments after filing their taxes: QAP, SLSP and SAWT
- Forgetting to include tax credits (from 2307 forms, etc.) in computation
A simple calculator online won’t catch or help with these mistakes. But a tax software does.
Why Taxumo is More Than a Tax Calculator Philippines 2025
Unlike a typical online tax calculator, Taxumo is an accredited tax software provider by the Bureau of Internal Revenue (BIR).
Taxumo doesn’t just calculate your tax — it:
- ✅ Computes the correct amount based on the data that you enter in your Cash Flow tab and Withheld Tax – Received Tab
- ✅ Prepares the correct forms (1701Q, 2551Q, etc.) based on your settings
- ✅ With a click of a button, you can send the auto filled forms directly to the BIR
- ✅ Lets you pay taxes online with different payment options
- ✅ Lets you submit your attachments (QAP, SAWT, SLSP) to BIR with every filing made
- QAP – attachments for those who file 1601EQ / 1604E
- SLSP – attachments for those who are filing VAT forms
- SAWT – attachments for those who receive 2307 forms and need to have it computed in your income tax returns
- ✅ Keeps digital records you can access anytime
In short: You get everything you need in one platform — no manual calculations, no paperwork, no BIR trips.
Filing Taxes in 2025? Use Taxumo.
Filing taxes in the Philippines doesn’t have to be hard.
✅ Whether you’re a freelancer, small business owner, or online seller, Taxumo makes tax compliance easier, faster, and error-free.
👉 Sign up for Taxumo today and experience tax filing the modern way!
Quick Summary
| What You Need | Taxumo Does It For You? |
|---|---|
| Compute taxes? | ✅ |
| Prepare BIR forms? | ✅ |
| File to BIR? | ✅ |
| Pay taxes online? | ✅ |
| Submit QAP, SLSP, SAWT | ✅ |
| Keep records? | ✅ |