- Tax Rate:
- For cities and municipalities within Metro Manila: Up to 2% of the assessed value of the property.
- For provinces: Up to 1% of the assessed value.
- Assessed Value:
- This is determined by the local assessor’s office and is a certain percentage of the market value of the property. The percentage depends on the type of property:
- Residential: Usually lower percentage.
- Commercial/Industrial: Higher percentage.
- This is determined by the local assessor’s office and is a certain percentage of the market value of the property. The percentage depends on the type of property:
Special Education Fund (SEF) #
- In addition to the basic property tax, there’s an additional 1% tax for the SEF, which is used to fund local schools and educational projects.
Idle Land Tax #
- If you own land that is not productively used, you might be subject to the idle land tax, which can be an additional 5% of the assessed value, depending on the local ordinances.
How to Calculate Your Property Tax #
To calculate your property tax, you’ll need to know the assessed value of your property. Here’s a simplified formula:
- Basic Property Tax = Assessed Value x Basic Tax Rate (1% or 2%)
- SEF = Assessed Value x 1%
- Total Property Tax = Basic Property Tax + SEF
For example, if you own a residential property in a city within Metro Manila with an assessed value of PHP 1,000,000:
- Basic Property Tax = PHP 1,000,000 x 2% = PHP 20,000
- SEF = PHP 1,000,000 x 1% = PHP 10,000
- Total Property Tax = PHP 20,000 + PHP 10,000 = PHP 30,000
Important Notes #
- Payment Schedule: Property taxes are due annually, usually in the first quarter of the year. Some LGUs offer discounts for early payments.
- Penalties: Late payments can incur penalties, typically a certain percentage per month of delay.
- Exemptions and Discounts: Certain properties, like those used for religious, charitable, or educational purposes, may be exempt. Senior citizens may also be eligible for tax discounts.
Conclusion #
Understanding your property tax obligations in the Philippines is crucial. Always check with your local assessor’s office for the most accurate and up-to-date information, as rates and regulations can vary. By staying informed and planning ahead, you can ensure that you fulfill your tax responsibilities smoothly.
