How to use it
Enter what your foreign client pays you each month in US dollars, today's exchange rate and what your payment service keeps. Then pick how you file income tax. The tool works out what you keep each month as a freelancer or independent contractor in the Philippines.
If your employer runs payroll for you in the Philippines, use the net pay calculator instead.
The formula
Pay in pesos = US$ × 12 × rate × (1 − transfer fees), for the year.
Then pick one tax option:
- 8% flat tax: 8% of your yearly income over ₱250,000. No percentage tax. Open to you if your income is ₱3,000,000 a year or less.
- Graduated rates with the 40% deduction: the BIR income tax table on 60% of your income, plus 3% percentage tax on all of it.
SSS, PhilHealth and Pag-IBIG as a self-employed member: SSS is 15% of your Monthly Salary Credit, up to ₱35,000. PhilHealth is 5% of your income, from ₱10,000 up to ₱100,000. Pag-IBIG is ₱400.
Example: US$1,500 a month at ₱58, 1% in fees, 8% tax.
- Pay in pesos: ₱1,033,560 a year, or ₱86,130 a month.
- Tax: 8% × (₱1,033,560 − ₱250,000) = ₱62,684.80 a year, or ₱5,223.73 a month.
- SSS ₱5,250 + PhilHealth ₱4,306.50 + Pag-IBIG ₱400 = ₱9,956.50 a month.
- Take-home: ₱70,949.77 a month.
With graduated rates the tax is ₱8,127.83 a month, so 8% saves ₱2,904.10 a month here.
Common questions
Do I have to pay tax on income from foreign clients?
Yes. Filipino residents are taxed on income from anywhere. Register with the BIR as self-employed, issue receipts, and file quarterly and yearly returns.
Which tax option is better?
The 8% option is usually cheaper, and simpler, for freelancers with few expenses. You choose it when you register or in your first quarterly return of the year, and it stays for the whole year.
Do I have to pay SSS, PhilHealth and Pag-IBIG?
SSS and PhilHealth are required for self-employed people. Pag-IBIG is required too once you are registered as self-employed. Untick the box to see your pay without them.
Last checked: 2026-09-26