WorldTax CompareAll Comparisons

Philippines vs United States
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇵🇭 Philippines
vs
🇺🇸 United States
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
Final TRAIN phase; potential review by Congress
No change
10–37%
TCJA provisions extended; no sunset
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
12%
12% standard; no change
No change
0–11%
No federal sales tax; state avg ~6–9%
No change

Corporate Tax Rate

Corporate Tax Rate
20–25%
25% large; 20% small; Pillar Two for qualifying MNCs
No change
21%
Federal flat; proposals to raise to 28% stalled
No change

Capital Gains Tax

Capital Gains Tax
6–15%
6%/15% maintained
No change
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change

Social Security & Payroll

Social Security / Payroll
~16%
Universal health coverage push increasing PhilHealth rates
No change
~15.3%
SS wage base ~$180,000 est. 2026
No change
State, Regional & Local Taxes

🇵🇭 PhilippinesLocal Government Unit (LGU) Taxes

The Philippines' 82 provinces, 146 cities, and 1,488 municipalities levy business taxes (1%–2% of gross receipts), real property tax, and fees. Cities can levy local business taxes at their own rates within national caps. The local business tax is a major compliance burden for businesses operating across multiple LGUs. The BIR (Bureau of Internal Revenue) administers national taxes. The Create Act (2021) significantly reformed corporate income tax rates.

🇺🇸 United StatesState & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Philippines vs United States: Key Tax Differences (2026)

💰 Income Tax: 🇺🇸 United States has a higher top income tax rate (0–35% vs 10–37%). 🇵🇭 Philippines is more favourable for high earners.

🛒 VAT/Sales Tax: Philippines has a higher consumption tax (12% vs 0–11%).

🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇵🇭 Philippines taxes investment gains at a lower rate (15% vs 20%), benefiting investors.

Related Comparisons

🇵🇭 Philippines vs 🇩🇪 GermanyTax comparison🇵🇭 Philippines vs 🇮🇩 IndonesiaTax comparison🇵🇭 Philippines vs 🇲🇾 MalaysiaTax comparison🇵🇭 Philippines vs 🇸🇬 SingaporeTax comparison🇵🇭 Philippines vs 🇹🇭 ThailandTax comparison🇵🇭 Philippines vs 🇬🇧 United KingdomTax comparison🇵🇭 Philippines vs 🇻🇳 VietnamTax comparison🇵🇭 Philippines vs 🇨🇳 ChinaTax comparison🇵🇭 Philippines vs 🇭🇰 Hong KongTax comparison🇵🇭 Philippines vs 🇯🇵 JapanTax comparison🇵🇭 Philippines vs 🇲🇳 MongoliaTax comparison🇵🇭 Philippines vs 🇰🇷 South KoreaTax comparison
All 🇵🇭 Philippines comparisons →All 🇺🇸 United States comparisons →