Philippines Real Property Tax Calculator (RPT) (2024)

FAQs

What is the RPT tax in the Philippines? ›

The RPT is an ad valorem tax levied on real properties, such as lands, buildings and other improvements, and machineries. It is imposed and collected annually by provinces, cities, and municipalities (Republic Act 7160, Sec. 233).

The formula to compute real estate tax is REAL ESTATE TAX = REAL ESTATE RATE X ASSESSED VALUE OF THE PROPERTY. The assessed value of the property is defined by its fair market value multiplied by the assessment level fixed through ordinances. The assessed value may be defined as the property's taxable value.

Real Property Tax

The simple computation of the RPT is 1% (2% if located in Metro Manila) of the fair market value of the property multiplied by the assessment rate. For residential homes, the assessment remains capped at 20% while for business/industrial properties is at 50%.

Real estate property tax is a tax imposed by your Local Government Unit that property owners must pay annually.

People often use the terms property tax and real estate tax interchangeably. In fact, not all property taxes are real estate taxes. So here's the difference: Real estate taxes are taxes on real property only; property taxes can include both real property and tangible personal property.

In the Philippines, six percent (6%) estate tax is imposed on the net estate of a decedent which must be filed and paid within one year from the death of the decedent. Failure to file and pay within the tax deadline is subject to penalties and interest.

You can easily calculate your effective tax rate as an individual taxpayer. Do this by dividing your total tax by your taxable income. To get the rate, multiply by 100. You can find your total tax on line 24 of Form 1040 and your taxable income on line 15 of the form.

One of those responsibilities is paying real property tax, locally known as amilyar. This annual tax payment, imposed by local government units (LGUs), helps fund essential public services and infrastructure. Whether you're a long-time landowner or have recently acquired a property, understanding this tax is crucial.

If the real estate is a capital asset, the purchase is subject to capital gains tax (CGT) of 6% of the gross selling price or current fair market value, whichever is higher, and documentary stamp tax (DST) of 1.5% of the actual consideration for the sale.

Dual Citizens of the Philippines under Philippine Republic Act 9225 can own land in the Philippines without restrictions similar gohstwriter to foreigners or former natural-born Filipinos.

Who are exempted from real property tax in the Philippines? ›

“Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, non-profit or religious cemeteries and all lands, buildings and improvements actually, directly, and exclusively used for religious, charitable, or educational purposes.”

If you don't pay real property taxes and the local government unit finds out, they will have to get administrative action against you. They could impose a levy on you or get judicial action against you.

Real property taxpayers who choose to pay early from January 1 to March 31 for the whole year are entitled to a 10% discount. Beat the rush, pay early. We advise our taxpayers to pay their taxes at the earliest possible time, to avoid the inconveniences of long queues and congestion.

The monthly tax for a monthly income of ₱30,000 in the Philippines is ₱1,468.40. We get that value by: Subtracting the total contributions of ₱1,825 (₱1,125 for SSS, ₱600 for PhilHealth, and ₱100 for Pag-IBIG) from the monthly income of ₱30,000 to get the taxable income of ₱28,175.

Individuals with no income, minimum wage earners, and those whose taxable income does not exceed PHP 250,000. Non-stock, nonprofit educational institutions. Non-stock, nonprofit corporations that fall under Section 30 of the National Internal Revenue Code.