How to Pay Real Property Tax: Guide for Property Owners

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Moneymax

Last updated June 13, 2022

Owning a property is truly a fulfillment of a dream, especially if you think about your loved ones’ security and comfort. However, owning a home in the Philippines comes with both privileges and responsibilities. Taht's because homeowners are obliged to pay real property tax―an annual tax payment imposed by the local government. 

As the Department of Finance recently expressed support to increase real property tax[1] or amilyar, property owners should now begin to understand what this is all about. Regardless of whether you own a land or you just acquired a new home through a housing loan, paying this particular tax is your responsibility. 

What is Real Property Tax?

Real property tax, also known as amilyar, is a tax imposed on property owners by the LGU where your property is located. It’s also referred to as real estate tax, which is due on the first day of January of each year. 

Curious about the amilyar meaning? Amilyar is a Filipino colloquial term coined from the Spanish word amillaramiento, which means assessment of a tax. Tax collection was introduced to us during the Spanish era when a datu ruled a barangay and collected tax in exchange for protection and security.[2] At present, amilyar is collected by the LGUs to raise funds for public services. 

How Much is Real Property Tax in the Philippines?

real property tax - how much is real property tax

As stated in the Local Government Code of 1991, real property tax in the Philippines is computed based on the following rates:

  • 1% of the assessed value of the property in the province
  • 2% of the assessed value of the property within Metro Manila

In general, assessment of real property tax follows this formula:

Real Property Tax = Rate x Assessed Value

For instance, if your property is in Metro Manila and the assessed value is ₱1,000,000, your real property tax will be: ₱1,000,000 x 2% = ₱20,000.

However, if your property of the same value is located in the province, your real property tax due will be ₱10,000. 

Read more: Looking for the Best Housing Loan in the Philippines? Check Out These 10 Banks

What is the Deadline for Paying Real Property Tax?

It should be paid on or before January 31 of each year. If you can’t pay for the amilyar in full on January 31, you have the option to settle the amount due in four installments:

  • On or before March 31
  • 2nd quarter: On or before June 30
  • 3rd quarter: On or before September 30
  • 4th quarter: On or before December 31

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

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

Tax declaration, on the other hand, is the property record that shows the assessed value of the property as the basis for real property tax computation. Upon acquiring the Tax Declaration, you’ll be given a tax declaration number once the registration of the property is approved.

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

Thus, based on the definitions above, a real property tax receipt or a tax declaration isn’t absolute legal evidence that you own the property.  It’s issued to the property owner for any of the following purposes:

  • Requirement for a loan or mortgage
  • Requirement for transactions with government agencies like the BIR or Pag-IBIG
  • For personal file
  • For re-assessment of land or improvement of the property

Read more: How to Get Your TIN in the Philippines: Requirements, Steps, and Fees to Know

What are the Requirements for Paying Amilyar?

Some of the amilyar payment requirements you need to present include:

  • Previous Official Receipt of Tax Payment
  • Property Tile
  • Tax Declaration Number

How to Pay Real Property Tax?

real property tax - how to pay real property tax

Paying real property tax can be done online and in person by visiting the City Treasurer’s Office or through your municipality’s partner merchants. 

Paying Amilyar Online and Through Partner Merchants

Most cities in Manila already have dedicated websites offering e-services for their residents. For instance, Quezon City’s QC e-Services[3] lets its residents create an account to register and settle their payments for availing city services, including their tax dues. 

In Makati, Makatizens are advised to have their business tax and real property tax assessed through makationlinepayments.com.[4] Once the exact amount to be paid is generated, Makatizens can pay their taxes via online banking and through GCash.[5] 

Pasig City offers real property tax payment through its Pasig City Online Services[6] website by following these steps:

  1. Create an account and provide the required information on the sign-up form.
  2. Register your property using the latest Official Receipt and the date when the registration was made. 
  3. Get your property assessed to determine the amount to be paid.
  4. Proceed with your payment.

Paying Amilyar at the City Hall

While some cities already offer online services for tax payments, the majority of local government units in the country don’t have this facility yet. You may need to visit the LGU’s Treasurer’s Office or any designated payment center and follow these steps:

  1. Prepare the required documents if you've already paid before. However, for first-time payments, you may need to bring a copy of your property title and your tax declaration number. 
  2. Proceed to your LGU’s Assessor Office, Taxpayer’s Lounge, or any window designated to assess the taxes to be paid for your property. 
  3. After the assessment, you should now have the exact amount to be paid. 
  4. Proceed to the billing section and pay the amount due. 
  5. Wait for the receipt as your proof of payment. 

How Do I Get a Declaration of Real Property Tax?

Depending on the LGU, getting a real property tax declaration may require the following documents: 

  • Certificate Authorizing Registration
  • BIR Tax Clearance Certificate
  • Transfer Fee Receipt
  • Updated Real Property Tax payment
  • Sworn Statement of True and Fair Market Value of the Property

You may also be asked to pay the following:

  • Filing Fee
  • Annotation Fee
  • Registration Fee

Steps in Getting a Real Property Tax Declaration

To get a real property tax declaration, follow these steps: 

  1. Submit your required documents. These will be assessed and ownership of the property will be verified. The Municipal Clerk will provide a date for you to return and continue the process. 
  2. Upon successful assessment and verification, the application for a Tax Declaration will be processed. The processing will involve a system validation and inspection of the property. You may also be asked to pay the required fees. 
  3. Once the Appraiser Inspection Report is accomplished, the documents will now be signed for approval. 
  4. All information will be encoded and stored in the LGU’s system.
  5. The tax declaration will then be printed and issued to you. 

Real Property Tax FAQs

real property tax - FAQs

1. What is considered real property?

Real property in the Philippines doesn’t refer to houses and buildings alone. In the Civil Code of the Philippines, real property also refers to: 

  • Trees or plants that are attached to a piece of land
  • Lands, roads, buildings, and other structures inherent to the piece of land
  • Animal houses or fish ponds and the animals that live in them
  • Paintings, decorations, and other elements placed in a building permanently

2. What happens if I fail to pay my amilyar on time?

Delays in your amilyar payment come with a hefty fine, which is 2% of the unpaid amount per month. The LGU may also opt to file administrative or judicial action to auction off your property. 

3. What happens if I pay my amilyar in advance? 

Most LGUs reward those who pay their taxes early. In Pasig City, you can get a 15% discount if you pay before the start of the new year. 

Final Thoughts

Owning a property comes with a cost. Your desire to provide the best possible home for your family also comes with a responsibility called real property tax.

Paying it in full and on time will not only save you from penalties and fines. It will also ensure that the property you worked so hard for will remain yours. 

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