Owning a house or a piece of land in the Philippines comes with the yearly obligation of paying the Real Property Tax (RPT), colloquially known as Amilyar.
If you fail to pay your Amilyar, the local government can impose severe penalties, and in extreme cases, auction off your property to recover the unpaid taxes. Here is a simple guide on how to compute it.
The Basic Formula
Computing your Amilyar is a three-step process based on the Local Government Code of 1991. You will need your Tax Declaration, which states the Fair Market Value (FMV) of your property.
Step 1: Find the Assessed Value
The Assessed Value is a percentage of your property's Fair Market Value. The percentage depends on the classification of your property:
- Residential: 20%
- Commercial / Industrial: 50%
- Agricultural: 40%
Formula: Fair Market Value × Assessment Level = Assessed Value
Step 2: Compute the Basic RPT
The basic tax rate depends on where your property is located.
- Metro Manila: 2% of the Assessed Value
- Provinces / Municipalities: 1% of the Assessed Value
Formula: Assessed Value × RPT Rate = Basic RPT
Step 3: Add the Special Education Fund (SEF)
On top of the basic RPT, the government collects an additional 1% nationwide for the Special Education Fund.
Formula: Assessed Value × 1% = SEF Tax
Total Amilyar Due: Basic RPT + SEF Tax
How to Get Discounts
Most Local Government Units (LGUs) offer up to a 20% discount if you pay your Amilyar in full on or before January 31 of the taxable year. If you pay in quarterly installments on time, you can also get a 10% discount.
Conversely, late payments incur a 2% penalty per month, capping at a maximum of 72% after 36 months of delinquency.
To estimate your exact property tax, use our Amilyar Calculator.