House leaders have filed a bill seeking to increase the annual income tax exemption threshold from ₱250,000 to ₱350,000, following President Ferdinand Marcos Jr.'s call to provide tax relief for middle-income Filipino workers.

House Speaker Faustino "Bojie" Dy and House Majority Floor Leader Sandro Marcos filed the measure on 28 July, proposing amendments to Section 24 of the National Internal Revenue Code (NIRC) governing individual income tax rates.

Under the proposal, only annual income exceeding ₱350,000 would be subject to the 15 percent income tax rate. The bill retains the existing graduated tax structure for higher income brackets, including the 35 percent tax rate for individuals earning more than ₱8 million annually.

"President Marcos' SONA placed tax relief where families will feel it, in the pay they bring home after every cutoff, and Speaker Bojie Dy has made sure the House responds with a bill rather than applause alone," Sandro Marcos said.

"Raising the tax-free ceiling to ₱350,000 gives workers more room for food, tuition, medicine and the bills that do not wait," he added.

The bill also preserves the current income tax exemption for minimum wage earners and maintains the option for married individuals to file their income taxes separately.

"This measure updates the brackets for workers, professionals and small entrepreneurs so the tax code reflects present realities," Sandro Marcos said.

The proposal aligns with President Marcos' fifth State of the Nation Address, where he urged Congress to expand the income tax exemption threshold by ₱100,000 to ease the financial burden on Filipino families.

If enacted, the measure provides that the Finance secretary will issue the necessary implementing rules within 90 days, while the law will take effect 15 days after its publication.