Home › Buyer Guides › Real Property Tax or Amilyar in the Philippines
The formula
- Fair market value (FMV): from the LGU's Schedule of Market Values, applied by the assessor and shown on your tax declaration
- Assessed value = FMV × assessment level
- Annual RPT = assessed value × (basic rate + 1% SEF)
Land and the house are assessed separately, each with its own tax declaration.
Maximum rates and levels under the Local Government Code
| Basic RPT rate | Up to 1% of assessed value (provinces); up to 2% (cities and Metro Manila municipalities) |
|---|---|
| Special Education Fund | Additional 1% |
| Residential land assessment level | Up to 20% |
| Residential building assessment level | Sliding scale by value: 0% up to ₱175,000; 10% to 30% for ₱175,001 to ₱1,000,000; 35% for ₱1M to ₱2M; 40% for ₱2M to ₱5M; up to 60% for the highest values |
Each LGU sets its actual rates and levels by ordinance within these ceilings. Your city or municipal assessor and treasurer can confirm the figures for your property.
Worked example
A 100 sqm residential lot with an FMV of ₱6,000/sqm, plus a house with an assessed FMV of ₱1,000,000:
| Step | Land | House |
|---|---|---|
| Fair market value | ₱600,000 | ₱1,000,000 |
| Assessment level | 20% | 30% |
| Assessed value | ₱120,000 | ₱300,000 |
- Total assessed value: ₱420,000
- At a 2% city rate + 1% SEF = 3%: ₱12,600 a year (₱1,050 a month)
- At a 1% rate + 1% SEF = 2%: ₱8,400 a year (₱700 a month)
Pay the full year by January 31 to get any early-payment discount the LGU offers (up to 20%), and that bill drops further.
Due dates, discounts, and penalties
- Annual: on or before January 31
- Quarterly: on or before March 31, June 30, September 30, and December 31
- Discount: up to 20% for advance or prompt payment, as set by local ordinance
- Penalty: 2% a month on the unpaid amount, up to 36 months (72%)
What RA 12001 (RPVARA) changes
The Real Property Valuation and Assessment Reform Act of 2024 standardizes how LGUs set market values:
- LGUs must update their Schedules of Market Values under national valuation standards, with public consultations, and revise them every three years.
- For the first year a new SMV takes effect, any RPT increase is capped at 6% over the previous tax.
- The BIR will use the approved SMV or the actual selling price, whichever is higher, for national taxes such as CGT and DST.
- The law also included a time-limited amnesty on RPT penalties and interest for owners with arrears.
For buyers: three checks before you pay
- Ask the seller for the latest tax declaration and official receipts for amilyar.
- Get a real property tax clearance from the treasurer. Unpaid RPT is a lien on the property itself, so it follows the property to the new owner.
- After transfer, have the assessor issue a new tax declaration in your name so bills reach you.
In developer purchases, the developer usually pays RPT until turnover or title transfer. Ask from what date you become responsible.
Frequently asked questions
How is amilyar computed in the Philippines?
Multiply the assessor's fair market value by the assessment level to get the assessed value. Then multiply that by the basic rate (up to 1% in provinces, up to 2% in cities) plus the 1% Special Education Fund.
When is the deadline for paying real property tax?
January 31 for full-year payment, or quarterly by March 31, June 30, September 30, and December 31. Paying early can earn a discount of up to 20%, depending on your LGU.
What is the penalty for late amilyar payment?
2% a month on the unpaid tax, up to a maximum of 36 months (72%). Long-unpaid RPT can lead the LGU to auction the property.
Do unpaid real property taxes transfer to the buyer?
Unpaid RPT is a lien on the property, so it stays with the property after a sale. Always get a tax clearance and settle any arrears before or at closing.
Related buyer guides
- Zonal Value vs Market Value vs Assessed Value
- The Real Cost of Buying a House in the Philippines: Reservation to Turnover
- Land Title vs Tax Declaration in the Philippines
- How Land Title Transfer Works in the Philippines (Buyer's Plain-English Guide)
Official sources and further reading
Reviewed for accuracy on October 4, 2026. Rates, fees, thresholds, and agency procedures change. Confirm transaction-specific details with the issuing agency, your lender, or a lawyer before you pay or sign.
About the author: Jeremiah Villagomez is a PRC-accredited and DHSUD-accredited Real Estate Salesperson based in San Pablo City, Laguna. He helps first-time buyers, OFWs, and relocating families buy house and lot homes with Pag-IBIG, bank, or cash financing. More about Jeremiah · Call 0976 302 6551
Have a specific situation? Call or text 0976 302 6551 and I will run the numbers for your exact unit, budget, and financing route for free.
