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2018 Tax Reform for Acceleration and Inclusion (TRAIN) Tax Calculator


This coming April 2018, will be the schedule for the filing of Income Tax Returns for the year 2017 using the old tax system. By next year, ITRs will be computed using the new Tax Reform for Acceleration and Inclusion (TRAIN).




train tax calculator
"Taxes - Calculator Image" (CC BY-SA 2.0) by efile989


I’ve discussed in the previous article Beginner’s Guide to TRAIN how the new tax computations are done. I suggest to take time and read the article to better understand the workings of our new tax system. Also, I’ve created a simple calculator to aid in the computation.


This will just calculate the estimated amount as there are many factors affecting one’s monthly salary. Though the new Personal Income Tax is much lower, a trade-off was also done to the other tax categories to compensate the changes. Below are some of the changes:

  • Personal Income Tax is lowered but the Exemption of Dependents are removed.
  • Other agencies also increased their contributions:
    • PhilHealth
      • If salary is Php 10,000 and below it will have a fix amount of Php 137.50
      • If salary is more than Php 10,000 and below Php 39,999.99, the calculation will be (Salary x 2.75%)
      • If salary is Php 40,000 and above it will have fix amount of Php 550.

    • The Social Security System will have an increase of 1.5%. Though, they didn’t announce yet the date.
    • It is also possible that Pag-IBIG (HDMF) will have an increase.





Monthly Basic Pay



Monthly Deductions


Computations

Monthly Basic Salary Monthly Deductions Monthly Taxable Income

Annual Taxable Income Annual Personal Income Tax Estimated Monthly Income Tax Deduction





Sometimes, the Computations table will not update when entering new values. If it comes to this, refresh the page.


I am hoping that this little article will help someone out there.

-Your Life In Perspective-


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