Annual real property tax: the basic rate plus the Special Education Fund.
Annual real property tax
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Assessed value
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Monthly equivalent
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Your breakdown
Updates live as you type
Item
Amount
Worked example
Take a residential property in a city with a fair market value of 3,000,000 pesos. Residential property is
assessed at up to 20% of its market value, so the assessed value is 600,000. The basic real property tax in
a city is up to 2% of that, which is 12,000. On top sits the Special Education Fund of 1% of the assessed
value nationwide, another 6,000. The total amilyar is 18,000 a year, or about 1,500 a month if you set it
aside monthly. The same property in a province would use a 1% basic rate, giving 6,000 of basic plus 6,000
SEF, so 12,000 a year, and a commercial property would be assessed at 50% of market value, raising the bill
sharply.
Step
Amount (PHP)
Fair market value
₱3,000,000
Assessed value (20% residential)
₱600,000
Basic tax (2% city)
₱12,000
Special Education Fund (1%)
₱6,000
Annual real property tax
₱18,000
How it is calculated
Real property tax, the amilyar, is charged on an assessed value rather than the full market price. The
calculator first applies the assessment level for the property class set by the Local Government Code: up
to 20% for residential, 50% for commercial or industrial, and 40% for agricultural land. It multiplies the
fair market value by that level to get the assessed value. The basic tax is then up to 1% of the assessed
value in a province or up to 2% in a city or Metropolitan Manila municipality. An additional 1% Special
Education Fund applies nationwide on the same assessed value. The annual bill is the basic tax plus the
SEF, paid to the local treasurer, and the tool also shows a monthly equivalent for budgeting. Actual rates
can sit below these ceilings depending on the local ordinance, and discounts for early or advance payment
are common, so treat the result as the headline figure before any local rebate.
Frequently asked questions
How is real property tax, or amilyar, computed in the Philippines?
First the assessed value is the fair market value times an assessment level, which is up to 20% for residential, 50% for commercial, and 40% for agricultural property. The basic tax is up to 1% of assessed value in a province or 2% in a city, plus an extra 1% Special Education Fund nationwide. So a residential property in a city is taxed at 3% of its assessed value, paid yearly to the local treasurer.
What is the Special Education Fund and why is it added on top of the basic real property tax?
The Special Education Fund is a 1% levy on the assessed value of all real property in the Philippines, collected alongside the basic real property tax but kept in a separate local fund dedicated to public school operations and maintenance. It is mandatory nationwide regardless of property class or whether the property is in a city or province. The SEF charge explains why the effective rate on a city residential property is 3% of assessed value rather than the 2% basic rate alone.
Is there a discount for paying real property tax early?
Yes. Most local government units grant a discount, often around 10% to 20%, for paying the full year's real property tax in advance, typically in January. You can also pay in four quarterly instalments, but the discount usually applies only to full advance payment. Check with your local treasurer's office for the exact discount rate and the deadline to qualify, since the percentage and the cut-off date vary by city or municipality.
Why is commercial property assessed at a higher level than residential?
The Local Government Code sets assessment levels by property class to reflect the income-generating potential of different property types. Commercial and industrial properties earn revenue for their owners, so the law applies a higher assessment level, up to 50%, against the fair market value before computing the basic tax. Residential properties, which are primarily for personal use, carry a lower assessment level of up to 20%. This means a commercial property worth the same market value as a residential one will have a significantly higher annual amilyar bill.