Home › Buyer Guides › Zonal Value vs Market Value vs Assessed Value
The four values side by side
| Value | Set by | Used for | Where to find it |
|---|---|---|---|
| Zonal value | BIR (Department of Finance) | Floor for CGT, DST, estate and donor's tax | BIR zonal value tables per Revenue District Office |
| Fair market value (assessor) | City or municipal assessor, using the LGU's Schedule of Market Values | Base for assessed value; also compared for CGT and DST | Tax declaration |
| Assessed value | Assessor: FMV × assessment level | Real property tax (amilyar) | Tax declaration |
| Market value (actual price) | Buyers and sellers | Negotiation, selling price | Comparable sales, listings, brokers |
| Appraised value | Bank, Pag-IBIG, or a licensed appraiser | Loanable amount, insurance | Appraisal report |
How they compare in practice
Here is an illustrative 120 sqm resale house and lot in a Laguna subdivision:
- BIR zonal value: ₱5,500/sqm × 120 sqm = ₱660,000 for the land (the house is valued separately)
- Assessor's FMV on the tax declarations: land ₱600,000 + house ₱1,100,000 = ₱1,700,000
- Assessed value for RPT: (₱600,000 × 20%) + (₱1,100,000 × 35%) = ₱505,000
- Bank appraisal: ₱2,600,000
- Agreed selling price: ₱2,800,000
Result: CGT and DST are computed on ₱2,800,000 (the highest), RPT on ₱505,000, and the bank lends against ₱2,600,000. You cover the ₱200,000 gap between price and appraisal with your downpayment.
How to look up zonal value
- Go to the BIR zonal values page and choose the Revenue District Office covering the property.
- Open the latest department order for that city or municipality.
- Find the barangay, then the street or subdivision, and the classification code (for example, RR for residential regular).
- Multiply the per-square-meter value by the lot area.
If a subdivision isn't listed, the BIR applies the value for "all other streets" in that barangay, or the nearest similar area.
What changes under RA 12001
The Real Property Valuation and Assessment Reform Act (2024) requires LGUs to prepare updated Schedules of Market Values following national valuation standards, with public consultation, and to update them every three years. Once approved, the BIR uses the SMV or the actual selling price, whichever is higher, for internal revenue taxes. Until then, current zonal values continue to apply. In practice, expect official values to move closer to real market prices over the next few years.
Why buyers should care
- Taxes: resale taxes are computed on the highest of these values, not just the price you agree.
- Financing: a low appraisal means a smaller loan and more cash from you.
- Negotiation: zonal value is not market value. Use comparable sales and listings, not the BIR table, to judge a fair price.
- Amilyar: your yearly tax follows assessed value, which may rise as LGUs update their SMVs.
Frequently asked questions
Is zonal value the same as market value?
No. Zonal value is the BIR's tax floor for an area and is often below what properties actually sell for. Market value is the price a willing buyer and seller agree on.
Which value is used for capital gains tax?
The highest of the selling price, the BIR zonal value, or the assessor's fair market value. After RA 12001 is fully implemented, it will be the approved SMV or the selling price, whichever is higher.
Why is my bank appraisal lower than the selling price?
Banks appraise conservatively using comparable sales and the property's condition. If the appraisal is lower, the loan is based on it and you pay the difference as downpayment.
How do I find the assessed value of a property?
It is on the property's tax declaration, issued by the city or municipal assessor. You can request a certified copy from the assessor's office.
Related buyer guides
- Real Property Tax or Amilyar in the Philippines
- Capital Gains Tax on Property in the Philippines
- Capital Gains Tax vs Documentary Stamp Tax vs Transfer Tax
- How to Buy Foreclosed Property in the Philippines
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.
