Amilyar (Real Property Tax) Guide 2026: How to Compute and Pay

What is amilyar (real property tax)?

Amilyar is the everyday Filipino term for real property tax (RPT), the annual tax that owners of land, buildings, condominium units, and machinery pay to their local government unit (LGU). It is authorized by Republic Act No. 7160, the Local Government Code of 1991, and collected by your city or municipal treasurer, not by the BIR. Unlike national taxes such as income tax or capital gains tax, amilyar funds local services like roads, drainage, and public schools, so the money stays in your community.

The word comes from the Spanish "amillaramiento" (tax assessment). If you own titled property in the Philippines, you owe amilyar every year for as long as you hold it, separate from one-time transaction taxes you paid when you bought it.

How is amilyar computed in the Philippines?

Amilyar equals the property's Assessed Value multiplied by the basic RPT rate, plus a 1 percent Special Education Fund (SEF) levy on the same Assessed Value. The basic rate is capped at 2 percent for properties inside Metro Manila and highly urbanized cities, and 1 percent for provinces.

The computation runs in three stages:

• Fair Market Value (FMV) — set by your LGU's Schedule of Market Values, based on location, size, and use.
• Assessed Value = FMV × Assessment Level. Under Section 218 of the Local Government Code, assessment levels are capped at 20 percent for residential, 40 percent for agricultural, and 50 percent for commercial and industrial property.
• Amilyar = (Assessed Value × basic rate) + (Assessed Value × 1 percent SEF).

Worked example: how much amilyar will I pay?

Here is a self-contained Metro Manila computation. Suppose Maria Santos owns a residential house and lot in Quezon City with a Fair Market Value of PHP 4,000,000.

• Assessment level (residential): 20 percent → Assessed Value = PHP 4,000,000 × 20% = PHP 800,000.
• Basic RPT (2 percent): PHP 800,000 × 2% = PHP 16,000.
• SEF (1 percent): PHP 800,000 × 1% = PHP 8,000.
• Total annual amilyar: PHP 16,000 + PHP 8,000 = PHP 24,000.

Now compare a province. Pedro Reyes owns a similar PHP 4,000,000 residential lot in Batangas. His Assessed Value is also PHP 800,000, but the basic rate is only 1 percent (PHP 8,000) plus 1 percent SEF (PHP 8,000), for a total of PHP 16,000 per year. Same property value, lower amilyar — location drives the difference. Run your own numbers with the real property tax calculator instead of doing the math by hand.

Are there discounts for paying amilyar early?

Yes. Most LGUs grant a discount of up to 20 percent for advance or prompt full payment, and the law allows up to a 20 percent discount under Section 251 of the Local Government Code. Discounts vary by city, so check your treasurer's office. For 2026, Manila offered tiered discounts (20 percent for advance payment, stepping down to 10 percent for prompt January payment), while Pasig City and several others offered 15 percent for full payment.

If Maria above pays her PHP 24,000 amilyar in full and early at a 20 percent discount, she saves PHP 4,800 and pays only PHP 19,200. Discounts generally apply only to properties with no existing delinquencies, so clear any back taxes first.

When is amilyar due, and can I pay in installments?

You can pay amilyar in full or in four quarterly installments. The full-year deadline is typically on or before January 31, while quarterly installments under the Local Government Code fall on or before March 31, June 30, September 30, and December 31. Always confirm exact dates with your LGU, because cities set their own schedules and discount windows.

What are the penalties for late amilyar payment?

Unpaid amilyar accrues interest of 2 percent per month on the delinquent amount under Section 255 of the Local Government Code, capped at 72 percent total (equivalent to 36 months). After that, the interest stops growing, but the LGU can move to auction the property to satisfy the delinquency.

Example: if Pedro forgets his PHP 16,000 amilyar for a full year, he owes 24 percent interest (2 percent × 12 months) on top, or PHP 3,840 in penalties, bringing the bill to PHP 19,840. Let it run past three years and the cap adds PHP 11,520 — a 72 percent surcharge that nearly doubles the original tax.

2026 tax amnesty: don't miss the RPVARA window

If you have delinquent amilyar, Republic Act No. 12001 (the Real Property Valuation and Assessment Reform Act, or RPVARA) grants a one-time amnesty on penalties, surcharges, and interest for unpaid RPT, SEF, and idle-land tax incurred before the law took effect. The amnesty must be availed within two years of the law's effectivity — until July 5, 2026 — so this is your final window. It does not cover properties already sold at auction, those under a compromise agreement, or those with pending court cases. If you owe back amilyar, visit your treasurer's office before the deadline to settle the principal and have the penalties waived.

How do I pay amilyar at City Hall or online?

You can pay amilyar in person at your City or Municipal Treasurer's Office, or online through LGU portals where available.

• In person: Bring your latest Tax Declaration, the previous year's official receipt, and a valid ID. The treasurer's office computes your assessment, you pay at the cashier, and you receive an official receipt — keep it for future transactions.
• Online: Cities like Quezon City (QC E-Services) and Taguig (Go Manila app) let you search by Tax Declaration Number, verify the owner, and pay via GCash, Maya, card, or bank transfer. Search "[your city] real property tax online payment" to find your LGU's portal.

Common amilyar mistakes to avoid (information competitors skip)

Many guides stop at the formula. These are the costly errors we see most often:

• Confusing amilyar with transaction taxes. Amilyar is annual and recurring; capital gains tax and documentary stamp tax are one-time taxes due when you sell or buy. Sellers should review our real estate sellers tax guide so they don't double-count.
• Forgetting the SEF. The 1 percent Special Education Fund is mandatory and often surprises first-time owners who budget only for the basic rate.
• Assuming the FMV is the assessed value. You are taxed on the assessed value (a fraction of FMV), not the full market price — using FMV directly overstates your bill by up to 5x.
• Skipping the early-payment discount. Paying in January instead of spreading installments can cut up to 20 percent off your bill, for zero extra effort.
• Letting delinquencies compound. At 2 percent per month, penalties snowball fast. Settle promptly, or use the RPVARA amnesty before July 5, 2026.
• Not updating the Tax Declaration after a sale. If the title is still under the old owner, you may miss notices and accrue penalties. Update it at the Assessor's Office — the same step inheritors handle in our property inheritors tax guide.

Amilyar optimization strategies

Beyond paying on time, you can legally lower or manage your amilyar. Pay the full year in January to bank the maximum discount; verify your assessment level matches your property's actual use (residential is taxed far lower than commercial); and contest an over-stated FMV with the Local Board of Assessment Appeals if your LGU's revaluation looks inflated. Owners running a business from the property should also coordinate amilyar with their percentage tax or VAT obligations, and consult our small businesses tax guide for the full picture. Whenever you need a fast estimate, the real property tax calculator does the assessment-and-SEF math for you.

Sources and References

The rates, thresholds, and rules on this page are drawn from official Philippine government issuances and reputable tax references. Tax rules change; always confirm current figures with the relevant agency before acting.

• Republic Act No. 7160 (Local Government Code of 1991) — full text incl. Sec. 218, 233, 235, 251, 255 — LawPhil / Arellano Law Foundation
• Republic Act No. 7160 | Local Government Code of 1991 — Official Gazette of the Republic of the Philippines
• Republic Act No. 12001 — Real Property Valuation and Assessment Reform Act (RPVARA), incl. tax amnesty — LawPhil / Arellano Law Foundation
• Public Advisory: Schedule of Discounts for Real Property Tax for Tax Year 2026 — City of Manila
• 15% Discount for Full Payment of 2026 Real Property Tax — Pasig City Government
• Tax Amnesty on Real Property Taxes under RA 12001 — BLGF Memorandum Circular No. 003-2025 — Reyes Tacandong & Co.