Real Property Tax Calculator

<strong>Market value</strong> is the estimated fair price at which a property would sell in an open market. <strong>Assessed value</strong> is a percentage of market value used for tax purposes. Under RA 7160, §218(a), the maximum land assessment levels are 20% (residential), 50% (commercial), 50% (industrial), 40% (agricultural), 50% (mineral), and 20% (timberland) of market value. These are ceilings set by law, so an LGU ordinance may adopt lower levels. The real property tax is calculated on the assessed value, not the full market value, which reduces the tax burden.

The <strong>municipal or city assessor's office</strong> determines both the market value and assessment level. They use comparable sales data, property inspections, and standardized valuation methods. You receive an official <strong>Tax Declaration (TD)</strong> showing these values. If you disagree, you can file a formal protest with the Local Board of Assessment Appeals (LBAA) within 30 days of receiving your TD.

The SEF is levied under RA 7160, §235, which authorises a province, city, or Metro Manila municipality to <strong>levy an annual tax of 1%</strong> of assessed value on top of the basic real property tax. Virtually all LGUs charge the full 1%, which is why this calculator uses 1% as the standard. However, the 1% is a maximum, not an absolute floor: the Supreme Court in <em>Demaala v. Commission on Audit</em> (G.R. No. 199752, 17 February 2015) upheld Palawan's ordinance setting SEF at 0.5%, so an LGU ordinance may set a lower rate. Proceeds are remitted to a local school board for school infrastructure and programs (RA 7160, §272 governs how proceeds are spent, not the levy itself).

Real property tax may be paid in full on or before <strong>March 31</strong>, or in four quarterly instalments due 31 March, 30 June, 30 September, and 31 December. Payment is made at your municipal or city treasurer's office. Late payment bears <strong>interest of 2% per month on the unpaid amount, capped at 36 months (a maximum of 72%)</strong> under RA 7160, §255 — there is no separate surcharge and no 12%-per-annum interest for RPT. Some LGUs offer online payment; check your local treasurer's website.

Yes, certain properties may qualify for exemption under RA 7160, §234, including government property, religious institutions, charitable organizations, educational institutions, and cultural properties. To apply, submit an exemption application with supporting documents (e.g., certificate of religious registration, deed of donation) to your municipal assessor before the tax year begins. Approval is not automatic; the assessor will verify eligibility.

Failure to pay real property tax can result in: (1) <strong>Interest</strong> of 2% per month on the unpaid amount, up to 36 months (RA 7160, §255); (2) <strong>Levy on the delinquent property</strong> followed by a public auction (tax sale) by the LGU to satisfy the unpaid tax, interest, and costs (RA 7160, §258) — the LGU may levy once the tax becomes delinquent, not only after three years; (3) <strong>Civil action</strong> by the LGU to collect the debt (RA 7160, §266). The LGU must generally collect within five years from the date the tax becomes due (RA 7160, §270). To avoid these consequences, pay by the deadline or arrange a payment plan with your municipal treasurer if you face hardship.

Yes. RA 12001 (the Real Property Valuation and Assessment Reform Act, or RPVARA), which took effect on <strong>5 July 2024</strong>, grants a one-time <strong>amnesty on penalties, surcharges, and interest</strong> for real property tax delinquencies (including SEF, idle-land tax, and special levies) that accrued before 5 July 2024, provided the basic tax is settled within the two-year amnesty window. That window <strong>closes on 5 July 2026</strong> (RA 12001, §30, implemented through its IRR and BLGF Memorandum Circular 003-2025). If you have back amilyar, paying the basic tax now can wipe out the accumulated penalties — but only if you settle before 5 July 2026. Coordinate with your city or municipal treasurer to confirm the amount and process.

Properties are typically reassessed every <strong>three to five years</strong> by the municipal assessor, though the frequency varies by LGU. Reassessment may increase your assessed value if property values in your area have risen or if you have made significant improvements. You will receive a new Tax Declaration reflecting the updated assessment. If you disagree, you can file a protest with the LBAA.

<strong>For individuals:</strong> Real property tax is generally <strong>not deductible</strong> from personal income tax under the NIRC. However, if you own rental property, real property tax is a deductible business expense when computing rental income. <strong>For corporations:</strong> Real property tax is deductible as a business expense under NIRC §34(A). Consult a tax professional for your specific situation.

The <strong>effective tax rate</strong> is the total annual real property tax (base tax + SEF) expressed as a percentage of the property's market value. For example, if your tax is ₱17,500 and market value is ₱3,500,000, the effective rate is 0.5%. This metric helps you understand the true tax burden relative to property value and compare tax costs across different properties or LGUs.

Your <strong>Tax Declaration (TD)</strong> is issued by your municipal or city assessor's office. You can obtain a copy by: (1) Visiting the assessor's office in person with your property's lot number or address; (2) Requesting it online if your LGU has a digital system; (3) Checking your property records if you received a TD when you purchased the property. The TD shows the assessed value, tax rate, and annual tax obligation.

Yes, you can file a formal <strong>protest with the Local Board of Assessment Appeals (LBAA)</strong> within 30 days of receiving your Tax Declaration if you believe the assessment is incorrect. You must provide evidence (comparable sales, independent appraisal, etc.) supporting your claim. If the LBAA denies your protest, you can appeal to the Central Board of Assessment Appeals (CBAA) within 30 days. Consult a tax professional to strengthen your case.

Yes, <strong>you remain responsible for real property tax</strong> even if your property is mortgaged to a bank or lender. The mortgage does not transfer the tax obligation. However, your lender may require you to maintain an escrow account to ensure taxes are paid on time, as unpaid taxes can lead to tax sale of the property. Always pay your real property tax directly to your municipal treasurer.