Complete Tax Guide for Grab & Rideshare Drivers
How Grab, Angkas, and rideshare drivers are taxed in the Philippines in 2026: BIR registration, the 8% flat rate vs graduated income tax plus percentage tax, deductible expenses, and quarterly and annual filing deadlines.
Last Updated: January 1, 2025
Quick Answer
Grab and rideshare income is self-employment business income taxed by the BIR. After registering, you choose either the 8% flat tax on gross receipts above ₱250,000 (replacing income tax and percentage tax) or graduated income tax (0-35%) plus 3% percentage tax. Estimate your bill with the TaxCalculator.com.ph income tax calculator.
Calculate with Income Tax CalculatorKey Takeaways
- check_circleGrab, Angkas, and rideshare income is self-employment business income — you must register with the BIR; the platform does not withhold your income tax.
- check_circleYour taxable gross receipts are total fares and incentives BEFORE Grab's commission, not your net payout.
- check_circlePick one: 8% flat tax on receipts over ₱250,000 (replaces income tax and percentage tax), OR graduated rates (0-35%) plus 3% percentage tax.
- check_circleThe 8% rate suits low-expense drivers; graduated wins for full-time drivers with heavy, documented fuel, commission, and boundary costs.
- check_circle2026 quarterly income tax (1701Q) is due May 15, Aug 15, and Nov 15; the annual ITR (Form 1701) is due April 15.
- check_circleThe ₱500 annual BIR registration fee was abolished in January 2024 under the Ease of Paying Taxes Act (RA 11976).
Tax Obligations
BIR Registration
Register as self-employed using BIR Form 1901 on or before you start earning, regardless of income level (NIRC Section 236). You receive your TIN and Certificate of Registration (Form 2303).
Annual Income Tax Return
File Form 1701 (or 1701A if you use the 8% flat rate or the optional standard deduction), reporting your full-year income and tax due.
Quarterly Income Tax Return
File Form 1701Q for the first three quarters, reporting cumulative income and any creditable withholding tax.
Quarterly Percentage Tax
If you are non-VAT (gross sales below the P3,000,000 threshold), file Form 2551Q and pay 3% percentage tax on gross receipts. Not required if you elected the 8% flat rate, which already covers percentage tax.
Registration Process
Get or verify your TIN
If you do not yet have a Tax Identification Number, secure one. If you were previously employed, transfer your records to the RDO covering your business address.
- • Valid government ID
File BIR Form 1901 at your RDO
Submit the registration form for self-employed individuals at the Revenue District Office covering your address.
- • BIR Form 1901
- • Valid ID
- • Proof of address
- • DTI Certificate (if using a business name)
Pay the DST and get your Certificate of Registration
Pay the P30 loose documentary stamp tax. The P500 annual registration fee was abolished in 2024 under the Ease of Paying Taxes Act (RA 11976). You then receive your Certificate of Registration (Form 2303).
- • BIR Form 2303 (issued to you)
Register your books of accounts
Register manual, loose-leaf, or computerized books of accounts before recording transactions.
- • Books of accounts
Register receipts or sales invoices
Apply for Authority to Print (Form 1906) or register for BIR e-invoicing, then issue official receipts or sales invoices to buyers and clients.
- • BIR Form 1906
Choose your tax regime
Elect either the 8% flat tax on gross receipts above P250,000, or graduated rates plus 3% percentage tax. The 8% option is often simpler and cheaper for smaller earners.
Applicable Taxes
Tax Calculators for Grab & Rideshare Drivers
Income Tax Calculator
The Bureau of Internal Revenue (BIR) requires Filipino taxpayers to compute and pay income tax on their earnings. If you're wondering how much tax you'll pay...
Calculate NowpercentPercentage Tax Calculator
Calculate 3% percentage tax for non-VAT registered businesses with gross annual sales ≤ ₱3M (per NIRC Section 116, current rate effective July 2023).
Calculate NowCommon Questions
Yes. The BIR treats Grab and rideshare earnings as self-employment business income. Drivers must register with the BIR, file quarterly and annual returns, and pay income tax (and percentage tax unless on the 8% flat rate). The platform does not withhold or remit income tax on your fares.
Your taxable gross receipts are total fares and incentives before Grab deducts its commission. You cannot report only your net payout. Under the graduated option the commission becomes a deductible expense; under the 8% flat rate, no expenses are deducted at all.
The 8% flat tax (on receipts over ₱250,000, replacing income and percentage tax) is simplest and best for drivers with low expenses. Graduated rates plus 3% percentage tax usually win for full-time drivers with heavy, documented fuel, commission, and boundary costs. Run both on a calculator first.
Under the graduated option you can deduct fuel, Grab's commission, boundary or vehicle rental, depreciation of an owned car, maintenance and repairs, insurance, LTFRB and registration fees, toll, and parking. Keep official receipts, or use the 40% Optional Standard Deduction instead of itemising.
Grab driver-partners file Form 1701 for the annual income tax return — not the simpler 1701A — because they may have mixed income or itemised deductions. They also file Form 1701Q quarterly, and Form 2551Q for percentage tax if they chose the graduated option.
Quarterly income tax (Form 1701Q) is due May 15, August 15, and November 15, 2026. The annual ITR (Form 1701) is due April 15. Percentage tax (Form 2551Q), if applicable, is due on the 25th day after each quarter ends. Deadlines on weekends or holidays roll to the next working day.
If you also earn a salary, you are a mixed-income earner. Your salary is taxed under graduated rates via employer withholding, and you cannot use the 8% flat rate in lieu of everything. You still register and file Form 1701, combining your compensation income and your Grab business income.
Yes. As a self-employed driver you pay your own mandatory SSS, PhilHealth, and Pag-IBIG contributions in full, since there is no employer to share the cost. Budget for these alongside your tax using the current 2026 SSS and PhilHealth contribution tables.