The ProGRESS bill — Promoting Growth, Revenue, and Equity toward Socio-Economic Sustainability — is the Marcos administration’s tax package now moving through Congress. Its income-tax core (HB 10345) widens the tax-free threshold from ₱250,000 to ₱350,000 starting January 1, 2027, and a companion measure (HB 10346) exempts micro and small corporations from the 2% minimum corporate income tax. This calculator shows what would change for you if the bill passes as filed — it is not yet law, and the Senate can still change the numbers.
Income tax: now vs. if ProGRESS passes
Enter your taxable income — per month or per year, whichever you know. (That’s gross compensation less SSS/PhilHealth/Pag-IBIG premiums and 13th-month pay above ₱90,000 — the flagship income tax calculator computes it for you.)
Self-employed: the 8% option
The 8% tax in lieu of graduated rates applies only to gross sales over the threshold — which the bill raises from ₱250,000 to ₱350,000.
Small corporations: the MCIT floor
HB 10346 lifts the 2% minimum corporate income tax for micro and small taxpayers (total assets ≤ ₱15M, §21(B)) organized as partnerships or corporations.
How the computation works
The rate ladder itself does not change: the 15% / 20% / 25% / 30% / 35% bands in force since January 1, 2023 stay exactly where they are above ₱400,000. What HB 10345 does is simpler: the 0% band widens from ₱250,000 to ₱350,000, shrinking the 15% band, and every higher bracket’s fixed tax drops by exactly ₱15,000 to stay continuous:
| Annual taxable income | Now (TRAIN, since 2023) | If ProGRESS passes (2027) |
|---|---|---|
| Over ₱0 to ₱250,000 | 0% | 0% |
| Over ₱250,000 to ₱350,000 | 15% of excess over ₱250,000 | 0% |
| Over ₱350,000 to ₱400,000 | 15% of excess over ₱250,000 | 15% of excess over ₱350,000 |
| Over ₱400,000 to ₱800,000 | ₱22,500 + 20% of excess over ₱400,000 | ₱7,500 + 20% of excess over ₱400,000 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500 + 25% of excess over ₱800,000 | ₱87,500 + 25% of excess over ₱800,000 |
| Over ₱2,000,000 to ₱8,000,000 | ₱402,500 + 30% of excess over ₱2,000,000 | ₱387,500 + 30% of excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 + 35% of excess over ₱8,000,000 | ₱2,187,500 + 35% of excess over ₱8,000,000 |
Source: HB 10345 as filed July 28, 2026 (amending §24(A)(2)(a) of the National Internal Revenue Code), approved by the House Committee on Ways and Means on August 10, 2026. Because the fixed portions drop by the same ₱15,000 at every boundary, the saving is a clean ₱15,000/year for anyone earning ₱350,000 or more, 15% of the excess for the ₱250,000–₱350,000 range, and zero below ₱250,000.
Why the change
The ₱250,000 threshold was set by the TRAIN Law in 2018 and never indexed. The Philippine Statistics Authority told the Ways and Means committee that cumulative 2018–2026 inflation of 42.4% means it would take about ₱356,000 today to match the 2018 purchasing power of ₱250,000 (the DOF’s own baseline puts it at ₱338,538). ₱350,000 restores most of that. The DOF estimates the exemption lifts 6.35 million of the 8.2 million compensation earners (77%) out of income tax entirely, up from 5.1 million today.
The relief is paid for: the package’s offsets — higher excise on sweetened beverages (₱6→₱20 per liter; ₱40 for high-fructose corn syrup), steeper vape and tobacco taxes with indexation, a higher luxury-goods rate (20%→25%) covering cars above ₱8 million, jets and vessels, a 15% global minimum tax on large multinationals, updated motor-vehicle user’s charges, and a levy on single-use plastics — are projected to raise ₱518.71 billion gross (₱191.77 billion net of the relief) from 2027 to 2030.
What still has to happen
- House plenary must pass HB 10345 / 10346 on second and third reading (committee level done, August 10, 2026).
- The Senate has no converged version yet — filed alternatives range from ₱350,000 to ₱600,000 thresholds, so the numbers can move in bicameral conference.
- The President signs; the law takes effect 15 days after Official Gazette publication, targeting January 1, 2027, with BIR withholding tables reissued to match.
Until then, your actual tax follows the current schedule — compute it on the income tax calculator, and see how withholding reaches your payslip. For corporations, the full CREATE-law computation with the MCIT floor stays on the corporate income tax calculator.
Frequently Asked Questions
Is the ProGRESS bill already law?
No. As of October 2026 the House Committee on Ways and Means has approved HB 10345 and HB 10346, but the package still needs House plenary approval, a Senate version, bicameral reconciliation, and the President’s signature. The target effectivity is January 1, 2027, and the numbers can still change in the Senate — senators have filed versions with thresholds from ₱350,000 to ₱600,000.
How much would I save under the proposed ₱350,000 tax-free threshold?
Anyone whose annual taxable income is at least ₱350,000 saves exactly ₱15,000 per year (₱1,250 per month), because the 15% band now starts at ₱350,000 instead of ₱250,000 and every bracket’s fixed tax drops by the same amount. If you earn between ₱250,000 and ₱350,000, you save 15% of the amount over ₱250,000. Below ₱250,000 nothing changes — you are already exempt.
Do the tax rates themselves go up or down under HB 10345?
The rates stay the same as they have been since January 1, 2023: 15% over ₱350,000 (previously ₱250,000), then 20% over ₱400,000, 25% over ₱800,000, 30% over ₱2 million, and 35% over ₱8 million. What moves is only where the 0% band ends — the tax-free threshold widens from ₱250,000 to ₱350,000, shrinking the 15% band.
What changes for self-employed taxpayers who pay the 8% option?
The 8% tax still applies in lieu of both the graduated rates and the 3% percentage tax, but it is computed only on gross sales in excess of ₱350,000 instead of ₱250,000. For example, on ₱500,000 of gross receipts the 8% tax drops from ₱20,000 to ₱12,000.
What does the ProGRESS package do for small corporations?
HB 10346 exempts micro and small taxpayers — those with total assets of not more than ₱15 million under Section 21(B) of the Tax Code, organized as a partnership or corporation — from the 2% minimum corporate income tax beginning January 1, 2027. They pay only the regular 20% or 25% corporate income tax on actual net income, so a company with little or no profit no longer owes the 2% floor. Medium and large corporations keep the MCIT.
Why is the government raising the tax-free threshold?
The ₱250,000 threshold was set by the TRAIN Law in 2018 and has never been adjusted. The Philippine Statistics Authority estimates cumulative inflation of 42.4% from 2018 to 2026, which erodes ₱250,000 to the equivalent of about ₱356,000 needed just to restore its 2018 purchasing power. The bill also comes with offsetting revenue measures — higher excise on sweetened drinks, vapes, tobacco, and luxury goods, a 15% global minimum tax, and new levies on plastics.
Want the whole story?
Our plain-language guide explains who saves what, the taxes that rise to pay for it, and every step the bill still faces in Congress.
Read: The ProGRESS Bill, ExplainedThis calculator applies the schedules in HB 10345 and HB 10346 as filed and committee-approved (August 2026) alongside the current TRAIN Law schedule. Proposed legislation can change; verify the final rates against the enacted law and BIR issuances before relying on them. Not tax advice — consult the BIR or a qualified tax professional for filing.