Real Property Tax Deadline: Dates to Remember This 2023

You saw a house and lot for sale, and you decided to seal the deal to have that luxury home of your dreams. In the Philippines, the obligations of a property owner doesn’t end there. Now you start to wonder when the real property tax payments in the Philippines are due, and if there are discounts available.

Make sure to pay your taxes on time. Here are some things to remember on the real property tax deadline Philippines.

What is Real Property Tax?

Real property tax, also known as amilyar in the Philippines or real estate tax, is tax imposed by the Local Government Units (LGUs) on the property owners. This tax is due on the first day of January of each year.

Where did the term “amilyar” come from?

Ever wondered why we call real property tax amilyar? Amilyar comes from the Spanish word amillaramiento, which means “assessment of tax.” Collection of tax in the Philippines was introduced during the Spanish colonial period when a datu ruled a barangay and collected tax in exchange for security and protection. Today, real property taxes are collected by LGUs for public use and service.

When is the Real Estate Property Tax Deadline Philippines in 2023?

If you want to pay in full, the deadline of payment for real property tax is on or before January 31, 2023. On the other hand, here are the deadlines if you want to pay in quarterly installments:

  • First Quarter: On or before March 31
  • Second Quarter: On or before June 30
  • Third Quarter: On or before September 30
  • Fourth Quarter: On or before December 31

How to Pay Your Real Property Tax

What’s the Difference Between Real Property Tax, Tax Declaration, and Transfer Certificate of Title?

Real property tax is tax due to be paid by an owner of the property.

Tax declaration is the property record showing the assessed value of the property as basis for computation of real property tax. A property owner will be given a tax declaration number once the they acquire the Tax Declaration and the registration of the property is approved.

The Transfer Certificate of Title is absolute proof of property ownership.

How Much is the Real Property Tax in the Philippines?

According to the Local Government Code of 1991, the following rates are the basis for real estate tax computation in the Philippines:

  • 1% of the property’s provincially assessed value
  • 2% of the of assessed value of the property in the city or municipality in Metro Manila

So, the assessment of the value of the property tax follows this formula:

Real Property Tax = Rate x Assessed Value of the Property

The assessed value of of the property is defined by its fair market value multiplied by the assessment level fixed by local ordinances of the local government unit.

For instance, if you have a luxury house and lot in Metro Manila owned by Brittany Corporation, your real property tax is P20,000 and the assessed value is P1,000,000. But if your luxury home is situated in the province, your real property tax obligation will only be P10,000.

Are there Additional Taxes for Real Properties?

Yes, there are additional taxes for real properties in the Philippines. Aside from real property tax, LGUs can collect additional taxes accrued to the Special Education Fund. An additional 1% can be levied on top of the assessed value of the real property, and this will be used as a budget for schools.

Ad valorem tax can also be levied if the real property has become idle. The rate shall not exceed 5% of the assessed value of the real property tax.

How to Pay Your Real Property Tax

Now that you have the assessed value of your luxury home, it’s time to pay your real property tax. You have two options for the payment of real property tax: at the city or municipal treasurer’s office and on the websites of various LGUs. You can pay it in full or in quarterly installments.

If you will pay your real property tax to the Treasure of the local government concerned, you need the following documents to make real property tax payments:

  • Valid identification card
  • A copy of the most current tax return
  • Copies of the official receipt when paying real property taxes

What's the Difference Between Real Property Tax, Tax Declaration, and Transfer Certificate of Title

If it is your first time paying real property tax for your luxury real estate in the Philippines, make sure to bring valid receipts from the developer or the previous owner of the property, as well as a copy of the tax declaration of the previous year. The previous owner usually transfers documents to the buyer or the new owner during the transfer of the property.

Follow these steps for the payment of real property tax in the City Hall:

  1. Prepare the required documents.
  2. Proceed to your LGU’s Assessor Office, Taxpayer’s Lounge, or any window to assess the taxes that need to be paid.
  3. Proceed to the billing section to pay the amount due based on the assessed value of the real property.
  4. Wait for the receipt as proof of payment.

However, it is now convenient to pay real property tax in the Philippines because real property tax payments are now available using online platforms. This way, you don’t need to wait in line and you only have safe, simple, and quick transactions.

Create an account, look for the tax declaration number of your property, find the payment, and select your preferred payment option. Typical payment options are GCash, Paymaya, credit/debit card, or bank transfer.

What are the Online Payment Portals for Real Property Tax Payment?

Here are the online payment channels in paying real property taxes:

  • Bureau of Internal Revenue ePay
  • City of Manila E-Government
  • Valenzuela E-payment Services
  • Quezon City Eservices
  • TRACE Taguig
  • Muntinlupa Online Real-Property Payment System
  • City of Cebu Online Real Property Tax Payment

Are there any Discounts on Real Property Tax in the Philippines?

LGUs highly encourage taxpayers to pay early or make advanced payments to prevent problems such as long lines and congestion, especially when it is near the deadline of payment for real property tax.

Another benefit of paying early is you get big tax discounts. You can enjoy a 5% to 20% discount when you pay on time or in advance. However, you can only avail of this if you don’t have any delinquencies.

The City Treasurer’s Office of Manila offers a tax for advance payments for the tax year 2023. For those who make a prompt payment from January 1 to 31, 2023, they will get a 10% discount. Taxpayers can pay at the Manila City Hall from 9 a.m. to 4 p.m. or via the Go! Manila app.

Real Property Tax Deadline Dates to Remember This 2023

What Happens if You Fail to Pay Your Real Property Tax?

If you didn’t pay on or before the deadline for the tax year 2023, penalties will apply. A penalty of 2% interest shall be added to the outstanding balance each month, and it can go as high as 72% penalty after three years.

The local government units in question shall be responsible for imposing penalties and administrative sanctions, like imposing charges on the real property or filing a judicial action if the real property is not paid.

The city or municipality has the right to sell your property at public auction if you fail to pay your real estate tax for a long period of time. Owners of delinquent properties still have the right of redemption, or a right to redeem their property for one (1) year by paying the taxes owed to the municipal treasurer.

Know More About Luxury Real Estate with Brittany Corporation

Now that you are aware of the deadline of payment for real property tax Philippines, it’s time to find your next luxury house and lot in Metro Manila (or even in the province)!

Experience world-class living with Brittany Corporation‘s house and lot for sale. Our properties and luxury real estate all over Metro Manila and nearby provinces are built and designed to meet your expectations for a reasonable price.

To know more about our world-class house and lot for sale, you can visit out LinkedIn and Youtube accounts.

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