Photo from Lamudi
Being a homeowner comes with responsibilities, one of which is paying your real property taxes or amilyar. Aside from your monthly mortgage, you also pay taxes annually levied by the local government.
How much is the real property tax in the Philippines?
The following rates form the basis of real property tax computation, according to the Local Government Code of 1991:
- 1% of the property’s provincially assessed value
- 2% of the property’s assessed value in Metro Manila
To determine real property tax assessments, use this formula: Real Property Tax = Rate x Assessed Value
To further illustrate, here’s an example: your real property tax would be 20,000 if your property is in Metro Manila and its assessed value is 1,000,000. However, your real property tax obligation will be 10,000 if your property of the same value is situated in the province (Lamudi, 2023).
As a property owner, you also ought to know the deadlines for paying your taxes. Paying your tax in full can give you a discount, and saves you headache and tax issues for the year. You can pay at the city or municipal treasurer’s office or on the websites of various LGUs.
For those who wish to pay in full, the deadline is January 31, 2023. The deadlines are as follows for those who want to pay it in quarterly installments:
- First Quarter: By March 31 or earlier
- Second Quarter: By June 30 or earlier
- Third Quarter: By September 30 or earlier
- Fourth Quarter: By December 31 or earlier
You may incur penalties if you fail to pay your real property taxes within the deadlines set. So, make sure to have these on your checklist and settle the payments within the set time from the government.
References
Isla, R. (2022). Real Property Tax in the Philippines: Deadlines, Discounts, Payments. Retrieved from https://www.moneymax.ph/government-services/articles/real-property-tax
Lamudi. (2023). Real Property Tax Deadline: Dates to Remember This 2023. Retrieved from https://www.lamudi.com.ph/journal/real-property-tax-deadline-2023/