How the Tax Is Computed
The Local Government Code, Republic Act No. 7160 (RA 7160), computes real property tax in two steps:
- Assessed value = market value × assessment level. The assessor sets the market value from the local list of land and building values (the schedule of market values). The assessment level is a percentage set by local ordinance for each class of property, within the maximums in Section 218.
- Tax = assessed value × tax rate. Provinces, cities and the Metro Manila municipality add 1% for the Special Education Fund (Section 235), on top of the basic tax.
Who sets the basic rate depends on where the property is (Sections 200 and 233):
| Where the Property Is | Who Levies It | Basic Rate | With the Special Education Fund |
|---|---|---|---|
| A city in Metro Manila, or Pateros | The city, or Pateros | Up to 2% | Up to 3% |
| A highly urbanized or independent component city | The city | Up to 2% | Up to 3% |
| A component city inside a province | The city, not the province | Up to 2% | Up to 3% |
| A town (municipality) outside Metro Manila | The province | Up to 1% | Up to 2% |
So a lot in a city with a market value of ₱2,000,000 and a 20% assessment level has an assessed value of ₱400,000. At 2% plus the 1% Special Education Fund, the tax is ₱12,000 a year.
Assessment Levels
Section 218 caps the assessment level by what the property is and how it is actually used. The city or province's ordinance sets the actual level, often lower. The level that applies to your property is printed on its Tax Declaration.
| Land | Highest Level |
|---|---|
| Residential | 20% |
| Agricultural | 40% |
| Commercial, industrial, mineral | 50% |
| Timberland | 20% |
For buildings, the level rises with the market value, and one level applies to the whole value:
| Market Value of the Building | Residential | Agricultural | Commercial, Industrial | Timberland |
|---|---|---|---|---|
| ₱175,000 or less | 0% | 25% | 30% | 45% |
| Over ₱175,000 to ₱300,000 | 10% | 25% | 30% | 45% |
| Over ₱300,000 to ₱500,000 | 20% | 30% | 35% | 50% |
| Over ₱500,000 to ₱750,000 | 25% | 35% | 40% | 55% |
| Over ₱750,000 to ₱1,000,000 | 30% | 40% | 50% | 60% |
| Over ₱1,000,000 to ₱2,000,000 | 35% | 45% | 60% | 65% |
| Over ₱2,000,000 to ₱5,000,000 | 40% | 50% | 70% | 70% |
| Over ₱5,000,000 to ₱10,000,000 | 50% | 50% | 75% | 70% |
| Over ₱10,000,000 | 60% | 50% | 80% | 70% |
Machinery is assessed at up to 40% if agricultural, 50% if residential, and 80% if commercial or industrial. Property used as a hospital or for cultural or scientific purposes is assessed at up to 15%, and property of local water districts and government companies that supply water or power at up to 10%.
Other Taxes on the Same Property
- Idle land tax. A province, city or Pateros may add up to 5% of the assessed value a year on idle land (Section 236). Idle land is farmland over 1 hectare with at least half left uncultivated, or other land over 1,000 square meters with at least half unused. Residential lots in subdivisions count whatever their size (Section 237). The local government may excuse land left idle because of a calamity or other cause beyond the owner's control (Section 238).
- Socialized housing tax. Republic Act No. 7279 (RA 7279), Section 43, lets local governments add 0.5% of the assessed value on urban land assessed at more than ₱50,000, to fund housing for low-income families. Only some cities and towns charge it.
- Special levy. When a public work such as a road or a drainage system raises the value of nearby land, the local government may charge those owners a special levy of up to 60% of the project's cost (Section 240). It is set by a separate ordinance for each project, so this calculator does not include it.
Who Does Not Pay
Section 234 exempts:
- Property owned by the national government or a local government, unless a taxable person has been given its use.
- Charitable institutions, churches, parsonages or convents, mosques, non-profit or religious cemeteries, and land and buildings actually, directly and exclusively used for religious, charitable or educational purposes.
- Machinery and equipment actually, directly and exclusively used by local water districts and government companies that supply water or generate and transmit power.
- Property of cooperatives duly registered under Republic Act No. 6938 (RA 6938).
- Machinery and equipment used for pollution control and environmental protection.
Residential buildings with a market value of ₱175,000 or less pay nothing, because their assessment level is 0%. An exemption is not automatic: the owner files proof with the assessor's office.
Paying, Discounts and the New Valuation Law
Pay the city or municipal treasurer once a year by 31 March, or in four installments due by 31 March, 30 June, 30 September and 31 December (Section 250). The local council may give a discount of up to 20% of the basic tax and Special Education Fund for paying in advance (Section 251). Unpaid tax earns interest of 2% a month, for up to 36 months (Section 255).
The Real Property Valuation and Assessment Reform Act, Republic Act No. 12001 (RA 12001), signed on 13 June 2024, requires every city and province to update its list of market values (schedule of market values) and to revise it every three years. It does not change the tax rates or the maximum assessment levels, but the local council may lower its levels or rates when a new list takes effect. In the first year a new list applies, any increase in real property tax, including the Special Education Fund and idle land tax, is limited to 6% over the previous year's tax. RA 12001 also gave a two-year amnesty on the penalties and interest on real property tax left unpaid before it took effect; that window closed in July 2026. Some cities and provinces pass their own amnesty ordinances, so ask your treasurer whether one is open.
Common Questions
How Do I Compute Amilyar?
Multiply the market value in the Tax Declaration by the assessment level to get the assessed value. Then multiply the assessed value by the basic rate (up to 1% for a town in a province, 2% in a city or Metro Manila) and add 1% for the Special Education Fund.
Where Do I Find the Market Value and Assessment Level?
On the property's Tax Declaration, from the city or municipal assessor's office. The treasurer's office can also print a statement of what is due.
Why Is the Tax on My House Different From the Tax on My Lot?
Land and buildings are assessed separately. Residential land is assessed at up to 20%, but a residential building is assessed on a scale from 0% to 60% depending on its value. Each has its own Tax Declaration and its own tax.
What Happens If I Do Not Pay Real Property Tax?
The unpaid tax earns interest of 2% a month, for up to 36 months. After notice, the local government can seize the property (levy) and sell it at public auction to collect.
Does a Condo Unit Owner Pay Real Property Tax?
Yes. A condo unit has its own Tax Declaration, and the owner pays the tax on it. The building's common areas are usually handled by the condominium corporation.
Not legal advice. This is general information. For advice on your own situation, consult a lawyer. If you cannot afford one, the Public Attorney's Office (PAO) or an IBP legal aid office may help for free.
This is an estimate to help you plan. The BIR, the city or municipal treasurer or the Registry of Deeds works out what you actually pay. Government fees, rules and requirements change, so always check with the office concerned before you go.