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Freelancer / Self-Employed Tax Calculator

Compare common self-employed tax options before you file or plan your next quarter.

Tax Calculator

Estimate annual income tax for freelance or self-employed income using the 8% option, graduated rates with OSD, or graduated rates with itemized expenses.

Estimated Tax Payable₱76,000.00
Effective Rate6.33%
Taxable Income₱950,000.00
Income Tax₱76,000.00
Percentage Tax₱0.00
Total Tax Before Credits₱76,000.00
Tax Credits Applied₱0.00

Quick Comparison

8% Gross Receipts Option₱76,000.00
Graduated Rates With 40% OSD₱122,500.00
Graduated Rates With Itemized Expenses₱178,500.00

Estimate uses current Philippine individual income tax brackets, the 8% self-employed option, 40% optional standard deduction, and 3% percentage tax for non-VAT graduated-rate estimates. Confirm final filing with BIR or a tax professional.

About This Tool

This calculator helps freelancers and self-employed Filipinos get a quick estimate of annual tax under common income-tax options. It is designed for planning, not final filing. Use it to compare the 8% gross receipts option, graduated rates with 40% optional standard deduction, and graduated rates with itemized expenses.

How To Use It

  • Enter your estimated annual gross receipts before expenses.
  • Choose a tax option to see how the estimate changes.
  • Add deductible expenses if you want to compare itemized expenses.
  • Add tax credits or withheld tax from forms such as BIR Form 2307 if you have them.
  • Compare the result with the quick comparison below the main estimate.

What The Estimate Includes

For the 8% option, the calculator estimates 8% tax on gross receipts above PHP 250,000 and does not add percentage tax. For graduated-rate options, it estimates income tax using the current individual tax brackets and adds a simple 3% percentage tax estimate for non-VAT self-employed income.

Important Reminders

Tax rules can depend on your registration, VAT status, mixed-income setup, deductions, withholding tax certificates, and filing history. Treat this as a planning estimate. Before filing or changing tax options, check your BIR registration details or ask a tax professional.

FAQs

Is this the exact tax I need to pay?

No. This is a planning estimate only. Your actual tax can change based on your registration, VAT status, deductions, withholding tax credits, penalties, mixed income, and BIR filing details.

What is the 8% tax option for freelancers?

The 8% option is a simplified income-tax option commonly used by eligible self-employed individuals and professionals. This calculator estimates it as 8% of annual gross receipts above PHP 250,000 and excludes percentage tax.

What is OSD?

OSD means Optional Standard Deduction. For this calculator, graduated rates with OSD estimate taxable income after a 40% deduction from gross receipts, then apply the individual income-tax brackets.

When should I use itemized expenses?

Use itemized expenses when you track actual deductible business expenses and want to compare them against OSD. You need proper records and receipts before relying on itemized deductions for filing.

What are tax credits or withheld tax?

Tax credits are amounts that can reduce tax payable. For many freelancers, this may include tax withheld by clients and documented through forms such as BIR Form 2307.

Does this include VAT?

No. This calculator focuses on income tax and a simple percentage-tax estimate for non-VAT graduated-rate scenarios. VAT registration and VAT returns are separate and should be checked with BIR or a tax professional.