Estate Tax Calculator
Calculate 6% estate tax on inherited properties and assets in the Philippines. Under TRAIN Law, ₱5M standard deduction is automatic. BIR-compliant 2026 rates.
Last Updated: June 13, 2026
Calculate Your Tax
How It Works
The Estate Tax Calculator helps executors, heirs, and tax professionals compute the 6% estate tax liability on the gross estate of a deceased person in the Philippines. Under the TRAIN Law (Tax Reform for Acceleration and Inclusion), every estate automatically receives a ₱5 million standard deduction, significantly reducing the taxable base for most Filipino families.
Estate tax is a national tax imposed on the transfer of property by death. It applies to the worldwide assets of Filipino citizens and residents, and to Philippine-sourced assets of non-residents. This calculator simplifies the computation so you can quickly determine your tax obligation and plan accordingly.
How This Calculator Works
Step 1: Enter Gross Estate Value
Input the total fair market value of all assets left by the deceased, including real property, bank accounts, investments, vehicles, jewelry, and life insurance proceeds payable to the estate.
Step 2: Deduct the Standard Deduction
The calculator automatically applies the ₱5 million standard deduction mandated by the TRAIN Law (Republic Act 10963, effective 1 January 2018). This is a blanket deduction available to all estates, regardless of family size or relationship to the deceased.
Step 3: Calculate Taxable Estate
Taxable Estate = Gross Estate − ₱5,000,000 (standard deduction). If the result is zero or negative, no estate tax is due.
Step 4: Apply 6% Flat Rate
Estate Tax = Taxable Estate × 6%. This flat rate applies to all taxable estates under current law (NIRC Section 84, as amended by TRAIN).
Step 5: Display Total Estate Tax Due
The calculator shows the final tax liability and the deadline for payment (within one (1) year from death, with the BIR Commissioner able to grant a filing extension of up to 30 days).
Underlying Tax Rules
Legal Basis: The estate tax is governed by the National Internal Revenue Code (NIRC), Book Four, Chapter II (Sections 84–91), as amended by the TRAIN Law (RA 10963, effective 1 January 2018).
Scope: Estate tax applies to the transfer of property by death of any person who, at the time of death, was a resident of the Philippines, or a non-resident citizen of the Philippines. For non-residents, only Philippine-sourced property is subject to estate tax.
Gross Estate: Includes all property, real or personal, tangible or intangible, wherever situated, beneficially owned by the decedent at the time of death. This encompasses:
- Real property (land, buildings, improvements)
- Personal property (bank deposits, stocks, bonds, jewelry)
- Life insurance proceeds payable to the estate or for which the estate is beneficiary
- Transfers in contemplation of death
- Revocable transfers and retained life interests
Standard Deduction: ₱5,000,000 (fixed under TRAIN Law). No itemized deductions are allowed; the standard deduction is mandatory and uniform.
Tax Rate: 6% flat on the taxable estate (NIRC Section 84, as amended). There are no progressive brackets for estate tax.
Payment Deadline: The estate tax return must be filed and the tax paid within one (1) year from the date of death (NIRC Sec. 90(B) and 91, as amended by the TRAIN Law). The BIR Commissioner may grant a filing extension of up to 30 days. Payment is pay-as-you-file; late payment incurs a 25% surcharge and 12% interest per annum.
Filing Requirement: An estate tax return (BIR Form 1801) must be filed in all cases of transfers subject to estate tax, and—regardless of the value of the estate—whenever the estate includes registered or registrable property (real property, motor vehicles, shares of stock) for which a BIR clearance (eCAR) is required to transfer ownership. This means most estates holding real property must file even when the gross estate is ₱5 million or less and no tax is due. Where the gross estate exceeds ₱5 million, the return must be supported by a CPA-certified statement.
Tips for Accurate Results
Valuation of Assets: Use fair market value as of the date of death. For real property, obtain a professional appraisal or use the BIR's zonal valuation. For stocks and bonds, use the closing price on the date of death. Bank deposits are valued at face amount.
Include All Assets: Do not overlook life insurance, retirement benefits, vehicles, jewelry, or overseas property. Incomplete valuation can lead to penalties and interest.
Document Everything: Keep receipts, appraisals, bank statements, and insurance policies. The BIR may audit the estate tax return and request supporting documents.
Deductions and Exemptions: Beyond the automatic standard deduction, NIRC Sec. 86 allows the family home (up to ₱10 million), claims against the estate, unpaid mortgages and taxes, the vanishing deduction, and—for a married decedent—the net share of the surviving spouse in the conjugal or community property. The Philippines has no US-style marital deduction for property left to a spouse, and funeral, judicial, and medical expenses are no longer deductible under the TRAIN Law. Certain transmissions, such as bequests to qualified social-welfare, cultural, or charitable institutions, may be exempt under NIRC Sec. 87. Consult a tax professional if the estate includes such items.
Installment Payment: Where the estate''s available cash is insufficient to pay the tax in full, NIRC Sec. 91(C) allows payment by installment within two (2) years from the statutory due date, without civil penalty and interest.
Tax Optimization Tips
Maximize the ₱5 Million Standard Deduction
The TRAIN Law's ₱5 million standard deduction is automatic and non-negotiable—every estate receives it. However, ensure your gross estate valuation is accurate and complete. Undervaluing assets to avoid tax is illegal and triggers penalties. The deduction alone saves a ₱5 million estate ₱300,000 in tax (₱5M × 6%). Plan lifetime gifts to reduce the estate below ₱5 million if feasible, though gift tax (6% donor's tax) applies to transfers exceeding ₱250,000 per donee per year.
Deduct the Surviving Spouse's Net Conjugal Share
The Philippines has no US-style "marital deduction" for property left to a spouse. Instead, NIRC Section 86 lets you deduct the net share of the surviving spouse in the conjugal partnership or community property. In practice, half of the net conjugal estate belongs to the surviving spouse and is removed before the estate is taxed. Example: if a married decedent leaves ₱20 million of net conjugal property, ₱10 million is the surviving spouse's share and only the decedent's ₱10 million half is part of the estate. After the ₱5 million standard deduction, the taxable estate is ₱5 million and the tax is ₱300,000 (₱5M × 6%), instead of ₱900,000 if the full ₱20 million were taxed. Identify conjugal versus exclusive (capital/paraphernal) property correctly, since only conjugal property is split.
Make Charitable Bequests
Donations to qualified charitable, religious, educational, or scientific institutions are deductible from the gross estate under NIRC Section 87. A ₱2 million bequest to a registered charity reduces the taxable estate by ₱2 million, saving ₱120,000 in estate tax (₱2M × 6%). This combines tax savings with philanthropic impact. Ensure the recipient organization is BIR-registered and the bequest is clearly documented in the will.
Use the Two-Year Installment Option When Cash Is Tight
When the estate's available cash is not enough to pay the full estate tax, NIRC Section 91(C) (as amended by the TRAIN Law) allows payment by installment within two (2) years from the statutory due date, without civil penalty and interest. There is no ₱1 million threshold—the only condition is insufficient estate cash. For example, a ₱2.7 million liability on an estate that is mostly illiquid real property can be spread over up to two years, giving the executor time to sell or refinance assets without triggering the 25% surcharge or 12% annual interest that applies to ordinary late payment. Arrange the installment plan with the BIR at the time of filing.
File Timely and Accurately to Avoid Surcharge and Interest
The estate tax return must be filed and paid within one (1) year from the date of death (NIRC Sec. 90 and 91, as amended by the TRAIN Law). Late payment incurs a 25% surcharge plus 12% interest per annum on the unpaid tax. For a ₱600,000 tax paid one year past the due date, the surcharge is ₱150,000 (₱600,000 × 25%) and the interest is ₱72,000 (₱600,000 × 12% × 1 year), totaling ₱822,000. Engage a tax professional early to ensure timely, accurate filing and payment, protecting the estate from unnecessary penalties.
Frequently Asked Questions
The executor, administrator, or heirs must file an estate tax return (BIR Form 1801) within one (1) year from the decedent's death (NIRC Sec. 90, as amended by the TRAIN Law). A return is required in all cases of transfers subject to estate tax, and—regardless of the value of the estate—wherever the estate includes registered or registrable property such as land, a house and lot, a motor vehicle, or shares of stock, because the BIR clearance (eCAR) needed to transfer ownership cannot be issued without a filed return. In practice, most estates that hold real property must file even if the gross estate is ₱5 million or less and no tax is ultimately due. Where the gross estate exceeds ₱5 million, the return must also be supported by a CPA-certified statement.
The gross estate includes all property, real or personal, tangible or intangible, beneficially owned by the decedent at death. This includes real property, bank deposits, stocks, bonds, life insurance proceeds payable to the estate, vehicles, jewelry, and overseas property (for residents). Transfers in contemplation of death and revocable transfers are also included.
Yes. Under the TRAIN Law (RA 10963, effective 1 January 2018), every estate automatically receives a ₱5 million standard deduction. No itemized deductions are allowed; the standard deduction is mandatory and uniform for all estates.
The estate tax rate is a flat 6% on the taxable estate (gross estate minus the ₱5 million standard deduction). There are no progressive brackets; the rate is uniform regardless of estate size.
The estate tax return must be filed and the tax paid within one (1) year from the date of death (NIRC Sec. 90(B) and Sec. 91, as amended by the TRAIN Law). Payment is pay-as-you-file. The BIR Commissioner may grant a reasonable extension (not exceeding 30 days) to file. Late payment incurs a 25% surcharge plus 12% interest per annum on the unpaid tax.
Yes. Under NIRC Sec. 91(C), as amended by the TRAIN Law, where the available cash of the estate is insufficient to pay the total estate tax due, payment by installment is allowed within two (2) years from the statutory due date, without civil penalty and interest. There is no ₱1 million threshold and no separate interest charge during this period—the qualifying condition is simply that the estate lacks enough cash to pay in full. The executor or administrator should arrange the installment schedule with the BIR as part of filing.
For deaths from 1 January 2018 onward (TRAIN Law), the deductions under NIRC Sec. 86 are: the ₱5 million standard deduction (automatic, no proof required); the family home, up to ₱10 million of its value; claims against the estate, unpaid mortgages, and unpaid taxes accrued before death; the vanishing deduction for property received by gift or inheritance within 5 years before death; and, for a married decedent, the net share of the surviving spouse in the conjugal or community property (the spouse's own one-half share is excluded from the estate, not deducted). The Philippines has no US-style "marital deduction" for property passing to the spouse, and funeral, judicial, and medical expenses are no longer deductible under the TRAIN Law. Separately, bequests to qualified social-welfare, cultural, or charitable institutions can be exempt transmissions under NIRC Sec. 87.
Yes. Life insurance proceeds are included in the gross estate if payable to the estate or if the decedent owned the policy at death (i.e., had incidents of ownership). If the policy is payable directly to a named beneficiary and the decedent had no incidents of ownership, the proceeds may be excluded. Proper policy ownership planning can minimize estate tax.
Real property is valued at fair market value as of the date of death. The BIR publishes zonal valuations for real property; use the higher of the zonal value or the actual selling price. For unique properties, obtain a professional appraisal. Keep all supporting documents for BIR audit purposes.
Undervaluing assets is illegal and constitutes tax evasion. If discovered, the BIR will assess additional tax, surcharge (25%), and interest (12% per annum). Criminal prosecution is also possible. Always use fair market value and document your valuations with appraisals, bank statements, and other evidence.
Yes. Lifetime gifts reduce the size of your taxable estate. However, gifts are subject to donor's tax at a flat 6% rate on the net gift (amount transferred minus ₱250,000 annual exclusion per donee). For large estates, strategic gifting combined with the annual exclusion can significantly reduce estate tax. Consult a tax professional to plan an effective gifting strategy.
Yes. Residents of the Philippines are subject to estate tax on their worldwide assets. Non-residents are subject to estate tax only on Philippine-sourced property. A non-resident citizen is treated as a resident for estate tax purposes. Proper residency classification is critical for determining the scope of taxable property.
Sources & References (4)
Primary sources and the laws, regulations, and official issuances this page relies on. Each citation links directly to the issuing authority’s document.
- Bureau of Internal Revenue. “6% flat estate tax on net estate (deaths on/after Jan 1, 2018); P5,000,000 standard deduction; P10,000,000 family home cap; return due 1 year from death.” bir.gov.ph. NIRC Secs. 84, 86, 90 as amended by RA 10963 (TRAIN); RR 12-2018. Accessed .
- LawPhil Project (Arellano Law Foundation). “TRAIN estate tax amendments (rate, deductions, filing period) — statute text.” lawphil.net. RA 10963 (TRAIN), amending NIRC Secs. 84/86/90. Accessed .
- LawPhil Project (Arellano Law Foundation). “Pre-TRAIN graduated estate tax schedule and deductions (deaths before 2018).” lawphil.net. RA 8424 (NIRC of 1997) Secs. 84 and 86 prior to TRAIN amendment. Accessed .