In Short
- Capital gains tax: 6% of the price, or of the government's value for the property, whichever is highest. Pay within 30 days.
- Documentary stamp tax: ₱15 for every ₱1,000 (1.5%) of the same amount. Pay by the 5th day of the next month.
- Transfer tax to the province or city: up to 0.5% in provinces and up to 0.75% in cities. Pay within 60 days of the deed.
- The BIR then gives you a certificate that lets the title be transferred (the eCAR), and the Registry of Deeds issues the new title after you pay registration fees.
- The Civil Code says the seller pays for the deed and its registration, unless the buyer and seller agree otherwise.
Government fees can change. Always check the current amount with the office before you pay. Last checked October 8, 2026.
Notarizing the Deed
The seller and buyer confirm before the notary that they signed the Deed of Absolute Sale. This kind of notarization is called an acknowledgment. Many notaries' price lists (fee schedules) charge for a Deed of Sale of land or a building as a percentage of the price or value. This site's estimate is 2% to 3% of the price, with a ₱2,000 minimum, but actual fees vary. See what notaries charge for a Deed of Sale.
The date of notarization matters. The BIR counts the tax deadlines from it.
Capital Gains Tax (CGT)
When an individual sells land or a building held as a capital asset (property not used in business), the National Internal Revenue Code sets a final tax of 6%. The BIR applies it to the selling price, the zonal value (the BIR's own value for land in that area), or the fair market value in the Tax Declaration, whichever is highest.
- Form: BIR Form 1706, filed with the Revenue District Office (RDO), the local BIR office for where the property is.
- Deadline: within 30 days after the sale. BIR Revenue Memorandum Circular No. 75-2026 counts this from the notarization of the deed. For sales paid in installments, the 30 days run from the first down payment and from each later installment.
- If the property is an ordinary asset (for example, sold by a real estate dealer or used in business), a different tax, creditable withholding tax (Form 1606), applies instead of CGT.
Documentary Stamp Tax (DST)
A Deed of Sale of land or a building is charged DST of ₱15 for every ₱1,000 of value, or 1.5%. It is computed on the same amount as CGT: the highest of the price, the fair market value and the zonal value.
- Form: BIR Form 2000-OT.
- Deadline: within five days after the close of the month the deed was notarized.
Government fees can change. Always check the current amount with the office before you pay. Last checked October 8, 2026.
The BIR Certificate for the Transfer (eCAR)
After CGT and DST are paid, the RDO issues an electronic Certificate Authorizing Registration (eCAR), the BIR's proof that the taxes are paid. The Registry of Deeds will not transfer the title without it. RMC No. 75-2026 lists a ₱100 certification fee and ₱30 DST for each eCAR, and a processing time of seven working days once requirements are complete.
Government fees can change. Always check the current amount with the office before you pay. Last checked October 8, 2026.
Local Transfer Tax
Section 135 of the Local Government Code (Republic Act No. 7160) lets a province charge a transfer tax of up to 50% of 1% (0.5%) of the price, or of the fair market value if the price is too low, whichever is higher. Under Section 151, a city may exceed the provincial maximum by up to 50%, so a city's rate can go up to 0.75%. The exact rate is set by a local ordinance (local law).
Section 135(b) says the tax is paid within 60 days from the date the deed was signed. Pay at the provincial or city treasurer's office where the property is.
Registration at the Registry of Deeds
To issue a new title in the buyer's name, the Registry of Deeds asks for the original deed, the Owner's Duplicate Title, the latest certified Tax Declaration, the BIR eCAR, a Real Property Tax Clearance, proof of payment of transfer tax, and a DAR Clearance if the land is agricultural, according to the Land Registration Authority. Registration fees are set by the LRA's price list (schedule) and go up with the value of the property. Ask the Registry of Deeds for the computation.
Afterwards, the buyer has the Tax Declaration transferred at the city or municipal assessor's office. See transferring a land title for the full steps.
Who Pays What
Article 1487 of the Civil Code says "the expenses for the execution and registration of the sale shall be borne by the vendor, unless there is a stipulation to the contrary." In plain words, the seller pays for making and registering the deed, unless you agree otherwise. The Local Government Code also puts the duty to pay transfer tax on the seller. In practice, buyers and sellers often agree on a different split, for example the seller paying CGT and the buyer paying DST, transfer tax and registration. Whatever you agree, write it in the deed so there is no argument later.
Try the property sale costs calculator to estimate the totals.
Common Questions
What Is the Capital Gains Tax Rate on Selling a House and Lot?
6% of the selling price, the BIR zonal value or the fair market value in the Tax Declaration, whichever is highest, for property held as a capital asset (not used in business). File BIR Form 1706 within 30 days.
Did the 2024 Real Property Valuation Law Change These Taxes?
The Real Property Valuation and Assessment Reform Act (Republic Act No. 12001), approved 13 June 2024, did not change the 6% CGT or 1.5% DST rates. It changes the value the BIR uses. Schedules of Market Values (official property values) approved under the law will replace BIR zonal values over time. Until then, zonal values still apply.
What Happens If I Pay Late?
Paying national and local taxes late brings surcharges (added charges), interest and penalties under the tax laws and local ordinances. Pay within the deadlines, which run from the date of the deed.
Is the Notary Fee Included in These Taxes?
No. The notary fee is separate and paid to the notary. See what notaries charge for it.
Who Usually Pays the Capital Gains Tax?
CGT is a tax on the seller's gain, and the Civil Code puts the expenses of the sale on the seller unless the deed says otherwise. Buyers and sellers can agree on a different arrangement in the deed.
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.
Government fees, rules and requirements change, so always check with the office concerned before you go. Last reviewed October 8, 2026.