Overview
Owning a property is a rewarding experience, but it also comes with responsibilities, including paying real property taxes. In the Philippines, real property tax is a mandatory financial obligation that property owners must fulfill. This guide aims to walk you through the process of paying real property tax in the Philippines (residential one), ensuring that you understand the steps and requirements involved. But before anything else, let’s define a few concepts that revolve around this matter.
Understanding Real Property
Real property tax, commonly referred to as “Amilyar” or RPT, is a local tax imposed by municipalities or cities on the ownership of real property, which includes land, buildings, and other improvements. The collected revenue from real property taxes is used to fund various local government initiatives, such as public services, infrastructure projects, and community development.
Determining The Taxable Amount
The amount of real property tax you need to pay is based on the assessed value of your property. This assessed value, which is stated on the Tax Declaration of your real property, is determined by the local government’s assessors and is often calculated using factors like the property’s size, location, market value, and improvements. It’s important to note that assessed values can vary from year to year, so your real property tax payments might fluctuate as well.
According to Local Government Code of 1991, Section 233 (Rates of Levy), the Real Property Tax (RPT) is calculated according to following rates:
- 1% of the assessed value of property in the province
- 2% of the assessed value of property within Metro Manila
Therefore, the RPT formula is: RPT = Percentage Rate x Assessed Value.
Documents To Bring:
Before you go to your Municipal Hall to pay your Real Property Tax, you need to bring any of the following documents:
- Property Title
- Tax Declaration
- Old or Previous Official Receipt of Real Property Tax Payment
Steps On How To Pay Real Property Tax
Paying RPT may vary slightly from one LGU to another. Some LGUs now offer the convenience of online payments, while others still rely on walk-in transactions. In this blog post, I will share my personal experience of paying my RPT at the Calamba Laguna Municipal Hall. This is my first time ever payment of RPT since the turn over of my house from the developer. To ensure a smooth process, I brought along my Tax Declaration document, which the developer had provided. This document specifies the assessed value of my property, serving as the foundation for calculating the RPT.
Now, let’s proceed to the payment method:
Step 1
First, go to the Office of the City Treasurer of your Municipal Hall. Of course it should be the Municipal hall of where your property is located.
Step 2
Next is to get your Statement of Account in Windows 17 to 19 by presenting the document you brought with you. This SOA will now tell you the grand total you will need to pay (see figure in yellow box). As you can see from my SOA, it has enumerated 2 items: 1st is the Assessed Value (AV) of my residential land (L-RESI) worth of P26, 100 and 2nd is the AV of my residential building (B-RESI) worth P98, 050. Multiplying these assessed values to 1% (since my property is in Laguna), my RPT for land and building are P261 and P980.50 respectively.
Step 3
Then bring your Statement of Account to Windows 14 to 16 to pay your Real Property Tax. Just pay the amount stated in your SOA as Grand Total.
Step 4
And Voila! You have just fulfilled your obligation as property owner and tax payer. Don’t forget to wait for your receipt as this serves as your proof of payment.
Most Frequently Asked Questions:
When should I Pay My Real Property Tax?
RPT should be paid on or before January 31st of each year
Can I Make Installment Payment?
Yes, the LGU accepts installment basis for RPT payment with the following scheme:
- 1st Installment – January 1 to March 31 of the year
- 2nd Installment – April 1 to June 30 of the year
- 3rd Installment – July 1 to September 30 of the year
- 4th Installment – October 1 to December 31 of the year
Final Thought
Meeting your real property tax obligations is a fundamental duty for property owners in the Philippines. By familiarizing yourself with the process, keeping track of your property’s assessed value, and staying aware of payment deadlines, you can ensure a seamless and trouble-free experience. It’s crucial to pay your taxes in full and punctually, or even in advance, to steer clear of the lengthy queues during peak periods and, of course, to avoid late payment penalties.
Additionally, many LGUs offer substantial discounts for early or advance payments, ranging from 10% to 20%. In my particular case, Calamba provided a generous 20% discount for payments made on or before December 29. However, since I settled my dues in January of the following year, I was only eligible for the 10% discount.
Now that you know how to pay your Real Property Tax, do you know which category your property falls into like an investment, an asset or liability? Here’s my personal insight about that:
House & Lot: An Investment, An Asset or A Liability?
You still don’t have your own property but planning to own one thru Pag-IBIG housing Loan? Here’s a guide to know how much you can borrow from Pag-IBIG:
How Much Can You Borrow From Pag-IBIG Housing Loan?
Salamat mga Ka-Butingting! If you find this post helpful, please share it with those who also might benefit from it. And don’t hesitate to share it too to your social media networks. God Bless!
