Jamaine Punzalan

Taxpayers line up to file their Annual Income Tax Returns (AITR) at Bureau of Internal Revenue office in Intramuros, Manila on April 17, 2023. Jonathan Cellona, ABS-CBN News

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INCOME TAX FILING

Vivienne Gulla

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block" width="960"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/178530049637720230417-bir-income-tax-return-JC4964.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">Taxpayers line up to file their Annual Income Tax Returns (AITR) at Bureau of Internal Revenue office in Intramuros, Manila on April 17, 2023. Jonathan Cellona, ABS-CBN News</span></span></span></div><p>MANILA — A bill seeking to increase the tax-exempt annual personal income ceiling to P350,000 was filed at the House of Representatives, following <a href="https://www.abs-cbn.com/news/business/2026/7/27/marcos-seeks-tax-relief-for-individuals-small-businesses-1654">President Ferdinand Marcos Jr.’s call for such measure</a> in his fifth State of the Nation Address last Monday.</p><p>House Speaker Faustino “Bojie” Dy III and House Majority Leader Sandro Marcos filed House Bill 10345 on Tuesday.</p><p>The measure proposes the following tax scheme beginning January 1, 2027 onwards. </p><div><br/></div><div><strong>TAXABLE INCOME- INCOME TAX DUE</strong></div><ul><li><strong></strong>Not over P350,000 – 0%</li><li><strong></strong>Over P350,000 but not over P400,000 – 15% of the excess over P250,000 </li><li>Over P400,000 but not over P800,000 – P22,500 + 20% of the excess over P400,000 </li><li>Over P800,000 but not over P2,000,000 – P102,500 + 25% of the excess over P800,000 </li><li>Over P2,000,000 but not over P8,000,000 – P402,500 + 30% of the excess over P2,000,000 </li><li>Over P8,000,000 – P2,202,500 + 35% of the excess over P8,000,000</li></ul><div> </div><p>Dy and Marcos said the proposal was made “in light of the ongoing economic challenges faced by Filipinos”, and “the rising cost of essential goods and services” that “continued to erode the purchasing power of the Filipino households”.</p><p>“This initiative aims to alleviate the financial burdens on low and middle income earners, fostering economic resilience and promoting equitable taxation… Providing tax relief to low and middle income earners will enable them to better meet their daily needs, improve the quality of life, and build greater financial security,” the House leaders said in the bill’s explanatory note.</p><p>“By allowing individuals earning up to P350,000 annually to retain their income without the burden of income tax, we empower them to increase their consumption. This, in turn, will invigorate local businesses and stimulate economic activity across various sectors… Increasing the disposable income of working Filipinos encourages greater household spending, which serves as a key driver of the country’s economic growth,” they added.</p><p>“The proposed adjustment also promotes a more equitable and progressive system of taxation by ensuring that individuals with limited financial capacity are not subjected to an undue tax burden. Instead, the government may focus its revenue collection efforts on those with greater ability to contribute,” the House leaders noted.</p><p>The House targets to approve the measure next month, according to House Committee on Ways and Means Chairperson Miro Quimbo.</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/28/dole-backs-marcos-call-to-raise-income-tax-exemption-to-p350-000-1524">DOLE backs Marcos call to raise income tax exemption to P350,000</a></div><div><br/></div><div><strong>RELATED VIDEO:</strong></div><div style="text-align:center"><iframe width="560" height="315" src="https://www.youtube.com/embed/4pa2THcEy2Q?si=UEMPW8uofURWEZ-D" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe></div>

<p>A bill seeking to increase the tax-exempt annual personal income ceiling to P350,000 was filed at the House of Representatives, following President Ferdinand Marcos Jr.’s call for such measure in his 5th State of the Nation Address last Monday.</p>

A bill seeking to increase the tax-exempt annual personal income ceiling to P350,000 was filed at the House of Representatives, following President Ferdinand Marcos Jr.’s call for such measure in his 5th State of the Nation Address last Monday.

House bill seeking to increase tax-exempt annual income ceiling to P350,000 filed by House leaders

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House bill seeking to increase tax-exempt annual income ceiling to P350,000 filed by House leaders

Vivienne Gulla,

ABS-CBN News

Published July 29, 2026 12:48 PM PHT

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Updated July 29, 2026 12:49 PM PHT

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