In Short
- The tax is a percentage of the assessed value, which is a set share of your property's market value.
- The basic rate is up to 1% in provinces and up to 2% in cities and Metro Manila municipalities, plus 1% more for public schools (the Special Education Fund).
- You can pay once a year or in four parts, due by 31 March, 30 June, 30 September and 31 December.
- Late payment adds interest of 2% a month, up to 36 months.
- Pay at the city or municipal treasurer's office where the property is.
How the Tax Is Computed
The rules are in Republic Act No. 7160, the Local Government Code (LGC). The local assessor works out the bill in three steps:
- Market value. The assessor's official list of property values (the schedule of market values) sets a value per square meter for land and a value for buildings and machinery. It appears on your Tax Declaration.
- Assessed value. Market value × assessment level. The assessment level is a percentage set by a local law (ordinance), within the limits in Section 218 of the LGC. For land, the maximum is 20% for residential, 40% for agricultural, and 50% for commercial and industrial land. Buildings have their own scales.
- Tax. Assessed value × the tax rate.
| Where the Property Is | Basic Tax (LGC Sec. 233) | Special Education Fund (Sec. 235) | Highest Total |
|---|---|---|---|
| Province (municipality outside Metro Manila) | Up to 1% | 1% | 2% |
| City, or a municipality in Metro Manila | Up to 2% | 1% | 3% |
Example. A residential lot in a city has a market value of ₱2,000,000. If the city uses a 20% assessment level, the assessed value is ₱400,000. At a 2% basic rate plus 1% SEF, the yearly tax is ₱12,000. Your city's actual levels and rates may be lower. Try your own figures in the real property tax calculator.
Government fees can change. Always check the current amount with the office before you pay. Last checked October 8, 2026.
When to Pay, and Discounts
The tax for the year becomes due (accrues) on 1 January. Under Section 250 of the LGC you can pay it in four equal installments without interest, due on or before:
- 31 March
- 30 June
- 30 September
- 31 December
Under Section 251, the city or municipality may give a discount for paying early or on time, of up to 20% of the annual tax. The actual discount, if any, is set by local ordinance, so ask your treasurer's office.
Penalties for Late Payment
Under Section 255 of the LGC, unpaid real property tax earns interest of 2% per month on the unpaid amount, up to a maximum of 36 months (72%).
Unpaid tax is a lien (a legal claim) on the property. If it stays unpaid, the local government can seize the property (levy on it) and sell it at public auction. The owner has one year from the sale to buy it back (redeem it). Do not let unpaid taxes pile up.
If you buy a property, ask the treasurer for a Tax Clearance first, because unpaid amilyar follows the property. See checking land before you buy.
Where and How to Pay
- Pay at the treasurer's office of the city or municipality where the property is. Bring your Tax Declaration number or the last Official Receipt.
- Many cities and municipalities now accept online payment through their own portals or partner channels. Check your LGU's (city or municipal government's) official website.
- Keep every Official Receipt. You need them for a Tax Clearance when you sell, mortgage or transfer the property.
- If you think the assessment is wrong, you can appeal to the Local Board of Assessment Appeals within 60 days from notice. If you protest the tax itself, you must pay first and file a written protest with the treasurer within 30 days of payment.
The Real Property Valuation and Assessment Reform Act (RA 12001)
Republic Act No. 12001, approved on 13 June 2024, changes how property values are set:
- Local assessors prepare the schedule of market values using national valuation standards. The Bureau of Local Government Finance reviews it and the Secretary of Finance certifies it.
- Assessors must update their schedules within two years from when the law took effect, and every three years after that.
- For the first year a new schedule takes effect, any increase in real property tax is capped at 6% of the tax before the law. The LGU may cap later increases by ordinance.
- The BIR will use the approved schedule of market values (or the selling price, if higher) for national taxes such as capital gains tax, in place of zonal values (the BIR's own land values) once they are replaced.
- It also gave a two-year amnesty (forgiveness) of penalties, surcharges and interest on real property taxes unpaid before the law took effect. That window closed in July 2026. The tax itself was not waived. Some cities and provinces pass their own amnesty ordinances, so ask your treasurer whether one is open.
Common Questions
Who Pays the Amilyar, the Owner or the Tenant?
The law looks to the owner or the person who uses and benefits from the property (beneficial use). A lease can make the tenant reimburse it, but the treasurer will still bill the property.
What If the Tax Declaration Is Still in the Old Owner's Name?
The tax is still due on the property. Pay it, keep the receipts, and transfer the Tax Declaration at the assessor's office as soon as you can. See transferring a land title.
How Much Is the Penalty for Late Amilyar?
Interest of 2% per month on the unpaid amount, for up to 36 months, under Section 255 of the Local Government Code.
Is There a Discount for Paying the Whole Year Early?
Many LGUs give one, up to 20% under Section 251 of the LGC. The exact discount and the deadline to get it are set by your city or municipality.
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.