Capital Gains Tax Calculator

Capital Gains Tax is a 6% flat tax on the sale of real property (land, buildings, condominiums, etc.). It is calculated on the higher of the gross selling price or the fair market value (FMV) as determined by the BIR. The tax must be paid within 30 days of the sale.

Any person or entity that sells real property in the Philippines is liable for CGT, unless the transaction qualifies for an exemption (e.g., transfers by gift, inheritance, or to the government). Both residents and non-residents are subject to CGT on Philippine real property sales.

The BIR determines FMV using its Zonal Valuation System (ZVS), which assigns values to properties based on location, size, and market conditions. Local Government Units (LGUs) also assess property values. You can request the FMV from the BIR or LGU before selling to plan your tax liability.

The BIR will use the higher amount (FMV) as the taxable base. For example, if you sell for ₱3M but the FMV is ₱3.5M, CGT is calculated on ₱3.5M. This rule prevents undervaluation and tax evasion.

CGT must be paid within 30 days from the date of sale or before the deed of sale is registered with the Register of Deeds, whichever is earlier. Late payment incurs 12% annual interest and a 25% surcharge.

In most cases, the 6% CGT is applied to the gross selling price or FMV without deductions. However, certain expenses (e.g., broker commissions, transfer fees) may be deductible under specific BIR rulings. Consult a tax professional to determine eligibility for your transaction.

Yes. Under NIRC §24(D)(2), the sale of your principal residence can be exempt from the 6% CGT if you meet all of these conditions, none of which is a minimum ownership period. (1) You fully use the proceeds to acquire or construct a new principal residence within 18 calendar months from the sale. (2) You avail of this exemption only once every 10 years. (3) You notify the BIR Commissioner of your intent to avail within 30 days of the sale. (4) The 6% CGT is meanwhile deposited in escrow with an authorized agent bank and released only on proof that the proceeds were utilized. If you use only part of the proceeds, the unutilized portion is taxed proportionately. Basis - NIRC §24(D)(2); RR 13-99 as amended by RR 14-2000.

You will need the deed of sale, proof of the selling price, the BIR's FMV (Zonal Valuation), and a duly accomplished BIR Form 1706 (Capital Gains Tax Return). Submit these to the BIR office with your payment within the 30-day deadline.

Late payment incurs 12% annual interest on the unpaid tax and a 25% surcharge. Additionally, the BIR may assess penalties, and the property transfer may be questioned or delayed. Always pay on time to avoid these costs.

CGT applies to most real property sales. However, certain transfers are exempt, such as transfers by gift, inheritance, transfers to the government, and (under specific conditions) the sale of a principal residence. Verify your transaction's status with the BIR.

Yes. Calculate CGT separately for each property sold, using the higher of the selling price and FMV for each. Sum the individual CGT amounts to determine your total tax liability for the year.

No. On top of the tax due on the sale itself, you will owe Documentary Stamp Tax (DST) of ₱15 per ₱1,000 (1.5%) on the higher of selling price or fair market value, plus a local transfer tax to the LGU (typically 0.5% to 0.75%). Note that the 6% CGT applies only when the property is a CAPITAL asset, and it applies regardless of how long you owned it - there is no holding-period rule for real property. If instead the property is an ORDINARY asset (for example, a real estate dealer's inventory or property used in trade or business), it is not subject to the 6% CGT at all; the gain is taxed at the graduated income tax rates with creditable withholding tax, and VAT may also apply. Basis - NIRC §24(D)(1) and §39; RR 7-2003 on capital-versus-ordinary asset classification.