1. What is Philippine Real Property Tax?

Real Property Tax (RPT) is a local tax imposed by cities or municipalities on real properties such as land, buildings, and other improvements. It's calculated based on the property's fair market value, assessment level, and local tax rate.

2. How Does the Calculator Work?

The calculator uses the basic property tax formula:

Where:

• \( Fair\ Market\ Value \) — Current market value of the property in PHP
• \( Assessment\ Level \) — Percentage of FMV subject to tax (typically 20% for land, 40-50% for buildings)
• \( Rate \) — Local tax rate (typically 1-2% of assessed value)

Explanation: The formula calculates the annual tax due by multiplying the property's value by the assessment level (to get assessed value) and then by the local tax rate.

3. Importance of Property Tax Calculation

Details: Accurate property tax calculation helps property owners budget for annual tax payments, avoid penalties for underpayment, and understand their tax obligations. It's also essential for local government revenue generation.

4. Using the Calculator

Tips: Enter the property's fair market value in PHP, the assessment level as a decimal (e.g., 0.2 for 20%), and the local tax rate as a decimal (e.g., 0.01 for 1%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical assessment level in the Philippines?
A: For provinces: 20% for land, 40% for buildings. For Metro Manila: 20% for land, 50% for buildings.

Q2: What are common tax rates?
A: Basic rate is 1% of assessed value. Cities may charge an additional 1% (total 2%) for the Special Education Fund.

Q3: When are property taxes due?
A: Taxes are due annually, with the option to pay in quarterly installments (due March 31, June 30, September 30, December 31).

Q4: Are there exemptions or discounts?
A: Senior citizens may get discounts, while government properties, charitable institutions, and low-value properties may be exempt.

Q5: How often is FMV reassessed?
A: Provincial/city assessors should update FMV every 3 years, though in practice this varies by locality.