Every January, a quiet bill lands on every Filipino who owns land, a house or a condo unit: the amilyar, or real property tax (RPT). Unlike income tax, nobody deducts it from your sahod, so it is easy to forget until the penalties pile up or you need a tax clearance to sell, mortgage or transfer the property. Here is how real property tax works in the Philippines, how to estimate your amilyar, when to pay, and how to avoid paying more than you need to.
What amilyar is and who collects it
Real property tax is a local tax. It is set by your province, city or Metro Manila municipality and collected by the city or municipal treasurer, not the BIR. The rules come from Title II, Book II of the Local Government Code (RA 7160). Under Section 246, the tax for any year accrues on January 1, and from that date it becomes a lien on the property that stays until the tax is paid.
That last part matters. An unpaid amilyar follows the property, not just the person. If you buy a lot with years of unpaid RPT, the delinquency can become your problem. It is also why the treasurer’s office will ask for proof of payment before issuing the documents you need for a sale, a bank loan or a transfer after a death in the family (see our estate tax guide).
The three numbers you need
Amilyar is computed from your tax declaration, the document issued by the local assessor’s office. Look for these:
- Market value – the value the assessor sets for your land, building or machinery, based on the LGU’s schedule of market values.
- Assessment level – a percentage applied to the market value, depending on the property’s class and actual use.
- Assessed value – market value × assessment level. This is the number the tax rate is applied to.
Maximum assessment levels
Section 218 of the Local Government Code (RA 7160) sets the maximum assessment levels. Your LGU may set lower ones by ordinance. For land, the caps are:
- Residential land: up to 20%
- Agricultural land: up to 40%
- Commercial, industrial and mineral land: up to 50%
- Timberland: up to 20%
For residential buildings, the level rises with the building’s market value. Buildings worth ₱175,000 or less have a 0% assessment level, then the caps step up: 10% (over ₱175,000 to ₱300,000), 20% (to ₱500,000), 25% (to ₱750,000), 30% (to ₱1 million), 35% (to ₱2 million), 40% (to ₱5 million), 50% (to ₱10 million) and 60% above ₱10 million. A modest house may carry little or no building tax, but the land is still taxed.
Maximum tax rates
Under Sections 233 and 235 of the Local Government Code (RA 7160):
- Basic RPT: up to 1% of assessed value in a province, and up to 2% in a city or a Metro Manila municipality.
- Special Education Fund (SEF) tax: an additional 1% of assessed value, which goes to public schools.
- Idle land tax: up to 5% of assessed value on qualifying idle lands, on top of the basic tax.
In practice, that means many city property owners pay up to about 3% of assessed value per year (2% basic + 1% SEF), and many provincial municipality owners pay up to about 2% (1% basic + 1% SEF). Your LGU’s actual rate is set by its own ordinance, so check your tax bill or ask the treasurer’s office.
Sample computation
These are illustrative numbers using the legal maximums, not anyone’s actual bill.
Example 1: House and lot in a city. Say the assessor values your residential lot at ₱1,000,000 and your house at ₱1,500,000.
- Land: ₱1,000,000 × 20% = ₱200,000 assessed value
- House: ₱1,500,000 × 35% = ₱525,000 assessed value
- Total assessed value: ₱725,000
- Basic RPT at 2%: ₱14,500
- SEF at 1%: ₱7,250
- Estimated annual amilyar: ₱21,750, or about ₱5,437.50 per quarter
Example 2: Residential lot in a provincial town. Lot market value ₱400,000, no house yet.
- Assessed value: ₱400,000 × 20% = ₱80,000
- Basic RPT at 1%: ₱800, SEF at 1%: ₱800
- Estimated annual amilyar: ₱1,600, or ₱400 per quarter
Your real bill may be lower if your LGU uses lower assessment levels or rates, or if your property has not been reassessed in years.
When to pay: quarterly or in advance
Section 250 of the Local Government Code (RA 7160) lets you pay the basic RPT and SEF in four equal installments without interest:
- 1st quarter: 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
Section 251 allows the sanggunian to grant a discount of up to 20% of the annual tax if you pay in advance according to the schedule. The actual discount, and the cut-off date to get it, depends on your LGU’s ordinance, so ask your treasurer’s office early in the year. If you can afford it, paying the whole year in January is one of the simplest legal ways to cut a recurring bill.
Tip: Treat amilyar like a yearly expense and save for it monthly. In Example 1, setting aside about ₱1,800 a month in a sinking fund covers the bill, and may let you grab the advance-payment discount.
What happens if you pay late
Under Section 255 of the Local Government Code (RA 7160), unpaid RPT earns interest of 2% per month on the unpaid amount, until fully paid, but the interest cannot run for more than 36 months. That is a maximum of 72% on top of the tax itself. For example, ₱1,600 of unpaid amilyar left for three years or more could grow to about ₱2,752.
Section 250 also says payments are applied first to older delinquencies, interest and penalties before the current year. So if you have arrears, paying “this year’s” amilyar may simply go to the old balance.
If the delinquency goes on, the LGU can go after the property itself. Under Section 256, it may collect through administrative action (levy on the real property) or through court action. In the worst case, delinquent property can be sold at public auction.
What about the RPT amnesty?
The Real Property Valuation and Assessment Reform Act (RA 12001) granted an amnesty on penalties, surcharges and interest for real property taxes unpaid before the law took effect. According to the DOF-BLGF Memorandum Circular No. 003-2025, that amnesty could only be availed of until July 5, 2026. That window has now closed. If you still have old arrears, go to your treasurer’s office and ask for a statement of account and whatever payment options your LGU currently allows.
RA 12001 also has a protection for homeowners worried about new valuations: under Section 29, in the first year a new schedule of market values takes effect under the law, any increase in real property tax is capped at 6% of the tax assessed before the law took effect.
How to pay your amilyar
- Get your details. Have your tax declaration number or property index number (PIN), and last year’s official receipt if you have it.
- Request a statement of account or tax bill from the city or municipal treasurer’s office. Many LGUs now offer this online through their official website or e-services portal.
- Pay through an official channel. That is the treasurer’s office, your barangay treasurer if your LGU has deputized one, or an online payment option listed on your LGU’s official website.
- Keep the official receipt. Store a photo or scan with your tax declaration. You will need it for a tax clearance, a sale, a loan, or a Pag-IBIG housing loan.
Scam warning: Do not pay amilyar to a “fixer” or to a personal GCash or Maya account sent through Facebook or text. Use only payment channels listed on your LGU’s official website or at the treasurer’s office. See our guide on how to spot money scams.
Can I contest my assessment?
Yes. The Local Government Code (RA 7160) has rules on appealing an assessment to the local board of assessment appeals and on paying under protest (Section 252, which requires you to pay first and file a written protest within 30 days of payment). Ask your assessor’s office about the process.
Quick recap
Amilyar is computed as market value × assessment level × tax rate. Basic RPT is capped at 1% in provinces and 2% in cities and Metro Manila municipalities, plus 1% for the Special Education Fund. You can pay in four quarterly installments (March 31, June 30, September 30, December 31) without interest, and your LGU may give up to 20% off for advance payment. Late payment costs 2% a month for up to 36 months. Budget for it monthly, pay early if you can, and always use official channels.
This article is general information only and not financial advice. Rates, rules and fees change, so please verify with the provider or the official agency before deciding.