Real property tax (RPT), commonly called amilyar, is an annual local tax on land, buildings, machinery, and other permanent improvements, computed as the property’s assessed value multiplied by a rate of up to 2% in cities and Metro Manila municipalities or up to 1% in provinces, plus a mandatory 1% levy for the Special Education Fund. It is billed and collected by the city or municipal treasurer where the property is located — not the national government — under the Local Government Code of 1991 (Republic Act No. 7160, Book II, Title Two, via LawPhil). The tax is due annually, can be paid in full or in four quarterly installments, and unpaid balances accrue 2% monthly interest. A 2024 law is also changing how the property’s taxable value itself gets set, so the figure on your latest bill may shift once your city or municipality adopts its updated valuation schedule.
Decision Snapshot
- What it is: An annual local tax on real property (land, buildings, and certain machinery) computed on assessed value, not on market price or BIR zonal value.
- Where to check or pay it: The city or municipal treasurer’s office where the property is located (many LGUs now also offer online or e-payment portals); bring your current tax declaration and last year’s official receipt.
- The key qualifying detail: RPT is computed on assessed value — fair market value from the tax declaration multiplied by an assessment level set by local ordinance — which is typically lower than both zonal value and actual market price.
- Main rates involved: Up to 1% of assessed value in provinces, up to 2% in cities and Metro Manila municipalities, plus a mandatory additional 1% for the Special Education Fund (SEF) — both under Republic Act No. 7160.
- Important 2026 caveat: Republic Act No. 12001 is replacing local Schedules of Market Values (and eventually BIR zonal values) with one unified valuation per LGU; first-year RPT increases from a revised schedule are capped at 6%, and a two-year amnesty on RPT penalties and interest lapsed on July 5, 2026.
- Next step: Confirm your property’s current assessed value, applicable rate, and any discount or penalty schedule directly with your city or municipal assessor and treasurer before paying or budgeting for it.
What Is Real Property Tax?
Real property tax is a local — not national — tax that provinces, cities, and municipalities within Metro Manila are authorized to levy on land, buildings, and other improvements permanently attached to real property, including certain machinery used for commercial, industrial, or mining purposes (Local Government Code of 1991, RA 7160, Book II, Title Two). It accrues every January 1 on whoever owns or holds legal interest in the property as of that date, and it funds the local government unit (LGU) where the property sits — separate from the BIR, which handles national taxes like capital gains tax, donor’s tax, and estate tax.
Filipinos commonly call it amilyar, a term carried over from the Spanish amillaramiento (property assessment roll). Whether you own a house and lot, a condo unit, raw land, or a commercial building, if you hold title or legal interest in real property in the Philippines, you are generally liable for it annually for as long as you own it — unlike one-time transaction taxes such as capital gains tax or documentary stamp tax.
Who Pays It, and What Is Exempt
The registered owner, or whoever has legal interest in the property (such as a buyer under a fully executed but unregistered deed, or an administrator of an estate), is liable for RPT. Condominium unit owners pay RPT on their individual unit through the condominium corporation or directly to the treasurer, depending on the LGU’s procedure, in addition to (not instead of) their condo association dues, which are a private, not a tax, obligation.
Section 234 of the Local Government Code exempts several categories of real property from RPT, including property owned by the national government or its political subdivisions (unless the beneficial use is granted to a taxable person), charitable institutions, churches and religious properties actually and directly used for religious purposes, cooperatives registered under the Cooperative Code, and machinery and equipment used for pollution control and environmental protection. These exemptions are narrowly construed — an LGU assessor will typically require documentary proof before honoring one, so do not assume a property is exempt without written confirmation from the local assessor.
How Real Property Tax Is Computed
The basic formula is straightforward once you know the two inputs:
Real Property Tax = Assessed Value × Tax Rate, where Assessed Value = Fair Market Value × Assessment Level.
The fair market value (FMV) is the value the city or municipal assessor has set for the property, shown on the tax declaration — this is a locally determined figure and is a different number from the BIR’s zonal value, even though both are meant to approximate market conditions (see our guide on BIR zonal value for how that separate figure is used). The assessment level is a percentage set by local ordinance, within ceilings fixed by Section 218 of the Local Government Code, that varies by property classification and, for buildings, by value bracket. Land is generally assessed at a lower percentage of FMV than buildings and commercial or industrial property:
| Property classification | Typical maximum assessment level (land) |
|---|---|
| Residential | Up to 20% |
| Agricultural | Up to 40% |
| Commercial / Industrial | Up to 50% |
| Mineral | Up to 50% |
| Timberland | Up to 20% |
Buildings and other structures follow a separate, graduated schedule under Section 218 that assigns higher assessment levels as the building’s FMV bracket increases — a modest residential structure can be assessed as low as 0% to 10% of FMV, while a high-value commercial or industrial building can be assessed up to 80% (ForeclosurePhilippines.com, Amilyar in the Philippines). Because each LGU’s sanggunian (local council) sets its own assessment levels by ordinance within these statutory ceilings, the exact percentage that applies to your property can differ between, say, Quezon City and a neighboring municipality — your tax declaration and the assessor’s notice of assessment will state the assessment level actually used for your property.
RPT Rates: Basic Tax, SEF, and Idle Land Tax
Once you have the assessed value, three possible levies can apply to it:
| Levy | Maximum rate | Legal basis |
|---|---|---|
| Basic real property tax — provinces | 1% of assessed value | RA 7160, Sec. 233(a) |
| Basic real property tax — cities and Metro Manila municipalities | 2% of assessed value | RA 7160, Sec. 233(b)–(c) |
| Special Education Fund (SEF) | Additional 1% of assessed value | RA 7160, Sec. 235 |
| Idle land tax (if the LGU has an idle-land ordinance) | Additional, not exceeding 5% of assessed value | RA 7160, Sec. 236 |
These are ceilings, not fixed nationwide rates — each province, city, or Metro Manila municipality sets its own actual basic RPT rate up to the statutory maximum through a local revenue ordinance, so two cities can legally charge different basic rates on comparably assessed property. The SEF is mandatory wherever RPT is collected. The idle land tax is optional and only applies where the LGU has enacted a specific ordinance defining and taxing idle agricultural or residential land — generally land that remains largely uncultivated or unimproved beyond a defined threshold (BatasNatin, Idle Land Tax under Sec. 236, RA 7160).
Payment Deadlines and Discounts
Real property tax accrues on January 1 of each year. Under Section 250 of the Local Government Code, the owner may pay it in one of two ways:
- Pay the full annual amount for the year, often timed to a specific window (commonly within the first quarter) to qualify for the LGU’s maximum prompt-payment discount, where one is offered.
- Pay in four equal quarterly installments, due on or before the last day of each quarter — March 31, June 30, September 30, and December 31 (Quezon City Government, How to Pay Your Real Property Tax).
Section 251 of the Local Government Code allows — but does not require — an LGU’s sanggunian to grant a discount of up to 20% of the annual tax due for advance or prompt payment (FileDocsPhil, Discount of Real Property Tax Payment). Each LGU sets its own discount tiers and cutoff dates by ordinance: Quezon City’s assessor’s office, for example, has offered a 20% discount for full-year advance payment made before the start of the taxable year and a 10% discount for full-year payment made within the first quarter (Quezon City Assessor’s Office, When to Pay), while other cities structure their discount windows differently. Always confirm the current-year discount schedule with your specific city or municipal treasurer — it is not standardized nationwide and LGUs can revise it by ordinance.
What Happens If You Don’t Pay: Penalties and Delinquency
Failing to pay RPT by the applicable deadline does not forfeit the property immediately, but the consequences compound over time. Under Section 255 of the Local Government Code, unpaid real property tax accrues interest of 2% per month on the unpaid amount, up to a maximum of 36 months (a potential 72% in accrued interest on top of the original tax). If delinquency continues, the LGU can pursue collection through a tax lien on the property, distraint of personal property, or ultimately a public auction sale of the delinquent real property to satisfy the unpaid tax, interest, and costs — a process governed by Sections 254 to 263 of the Code.
Because RPT delinquency can escalate to a forced sale of the property, it is worth treating an unpaid balance as urgent rather than routine, especially for inherited, absentee-owned, or overseas-owned property where notices may not reach the owner promptly.
The 2026 Shift: RA 12001 and the Schedule of Market Values
Republic Act No. 12001, the Real Property Valuation and Assessment Reform Act (RPVARA), was signed into law on June 13, 2024, and its implementing rules were approved in January 2025 (DOF-BLGF Memorandum Circular No. 001-2025, IRR of RA 12001). It does not change the RPT rates or the SEF levy described above, but it changes how the underlying valuation — the fair market value that feeds into assessed value — gets set. The law directs every LGU to prepare a single, BLGF-reviewed Schedule of Market Values (SMV) intended to eventually replace both the assessor’s own fair market value schedule and, over time, the BIR’s separate zonal value system with one unified figure (RA 12001, full text via LawPhil; Supreme Court E-Library copy).
Three transition details are directly relevant to what you actually pay:
- SMV update cycle: LGUs had two years from the law’s effectivity to submit an updated SMV, and must revise it every three years afterward — a faster cycle than the general revisions many LGUs had been doing only sporadically before.
- 6% first-year increase cap: When a new SMV takes effect and raises a property’s assessed value, the resulting increase in real property tax due is capped at 6% in that first year, cushioning the transition rather than applying the full new valuation at once (Grant Thornton Philippines, The Reformation of Real Property Valuation).
- RPT amnesty already lapsed: RA 12001 also granted a one-time, two-year amnesty condoning penalties, surcharges, and interest (though not the basic tax itself) on RPT delinquencies incurred before the law’s effectivity. That amnesty window ran from July 2024 and closed on July 5, 2026 — already past as of this writing. If you have old unpaid RPT that missed this amnesty, expect the full Section 255 interest schedule to apply going forward unless your LGU has since enacted its own separate local amnesty ordinance, which some LGUs do periodically.
As of this writing, SMV rollout is happening LGU by LGU rather than all at once — some cities have published proposed 2026 schedules while others are still using their prior fair market value schedule. This guide cannot confirm whether your specific city or municipality has already adopted an updated SMV; check with your local assessor’s office before assuming either the old or a new valuation applies to your next bill.
Real Property Tax vs. Related Terms
RPT is frequently confused with other property-related values and taxes that sound similar but serve different purposes:
| Term | What it is | How it relates to RPT |
|---|---|---|
| Assessed value | FMV × assessment level, set by the city/municipal assessor | This is the actual base RPT is computed on |
| Fair market value (assessor’s) | The assessor’s valuation shown on the tax declaration | Feeds into assessed value; not itself the tax base |
| BIR zonal value | The BIR’s separate valuation for national taxes on a sale, donation, or inheritance | Not used to compute RPT; see our BIR zonal value guide |
| Tax declaration | The assessor’s document recording a property’s classification and FMV | The source document RPT bills are based on; see our tax declaration vs. land title guide |
| Special Education Fund (SEF) | An additional 1% levy collected alongside RPT | Billed together with basic RPT, but a legally separate levy |
Worked Example: Computing a Condo Unit’s Annual RPT
The figures below are a hypothetical illustration only — not a real property, not an actual LGU’s rate or assessment level, and not tax advice. They exist to show the mechanics of the calculation.
- Inputs: A residential condo unit with an assessor’s fair market value of ₱3,100,000, in a city that applies a hypothetical residential assessment level of 20% and a hypothetical basic RPT rate of 2% (the ceiling for cities), plus the mandatory 1% SEF.
- Step 1 — compute assessed value: ₱3,100,000 × 20% = ₱620,000.
- Step 2 — compute basic RPT: ₱620,000 × 2% = ₱12,400.
- Step 3 — compute the SEF levy: ₱620,000 × 1% = ₱6,200.
- Step 4 — total annual RPT due: ₱12,400 + ₱6,200 = ₱18,600 for the year, payable in full or as roughly ₱4,650 per quarterly installment.
- Step 5 — apply a hypothetical 10% prompt-payment discount: ₱18,600 × 10% = ₱1,860 saved, for a net payment of ₱16,740 if paid within the LGU’s discount window.
Notice that the ₱3,100,000 fair market value never appears directly in the bill — only 20% of it (the assessed value) is actually taxed, which is why an RPT bill often looks surprisingly small relative to a property’s market price. Your actual assessment level, basic rate, and discount will depend entirely on your specific LGU’s ordinances.
What to Verify Before You Rely on This
- Your property’s current assessed value and the assessment level actually applied, from your latest notice of assessment or tax declaration.
- Your specific LGU’s basic RPT rate (up to the 1%/2% statutory ceiling) and whether an SEF or idle land tax also applies.
- This year’s discount schedule and deadlines with your city or municipal treasurer, since these are set locally and can change.
- Whether your LGU has adopted an updated Schedule of Market Values under RA 12001, since this can change your assessed value going into the next billing cycle.
- Whether any old delinquency exists on the property (especially for inherited or recently purchased property), and confirm with the treasurer whether it now carries full Section 255 interest following the lapse of the RA 12001 amnesty.
Frequently Asked Questions
Is real property tax the same as amilyar?
Yes. Amilyar is simply the common Filipino term for real property tax, derived from the Spanish word for the property assessment roll used to compute it.
Do condo owners pay real property tax separately from association dues?
Yes. Condo association dues are a private obligation to the condominium corporation for building upkeep and are not a tax. Real property tax is a separate, government-imposed annual tax on the unit itself, billed by the city or municipal treasurer.
What is the maximum real property tax rate I can be charged?
Under the Local Government Code, the basic rate cannot exceed 1% of assessed value in a province or 2% in a city or Metro Manila municipality, plus a mandatory additional 1% for the Special Education Fund. Your actual LGU may charge less than these ceilings, but not more.
What happens if I miss the quarterly deadline?
The unpaid portion starts accruing interest of 2% per month, capped at a maximum of 36 months of accumulated interest. Continued non-payment can eventually lead to a tax lien and, ultimately, a public auction of the property to satisfy the delinquency.
Can I still avail of the RA 12001 real property tax amnesty?
The national two-year amnesty under RA 12001 covered delinquencies incurred before the law’s 2024 effectivity and closed on July 5, 2026. If that window has passed, ask your city or municipal treasurer whether a separate local amnesty ordinance is currently in effect, since some LGUs periodically run their own.
Will my real property tax go up because of RA 12001?
It can, if your LGU adopts a higher Schedule of Market Values that raises your property’s assessed value — many SMVs had not been updated in years or decades before this reform. The law caps the resulting RPT increase at 6% in the first year the new schedule takes effect, though later years are not subject to that same cap.
Is real property tax used to compute capital gains tax or donor’s tax?
No. Those national taxes use the higher of BIR zonal value, the assessor’s fair market value, or the declared selling price — not the lower assessed value that real property tax is computed on. Using assessed value to estimate a sale’s tax exposure will understate what is actually due.
Where can I get an official real property tax computation for my property?
Request it directly from the city or municipal assessor’s office (for your assessed value) and the treasurer’s office (for the current rate, discount, and any balance due). Many LGUs, including several in Metro Manila, also post real property tax payment notices and schedules through the Bureau of Local Government Finance.
What to Do Next
If you own real property in the Philippines, start by pulling your current tax declaration and latest RPT official receipt from the city or municipal assessor and treasurer to confirm your assessed value, applicable rate, and payment status. If you’re buying a property, ask the seller for the most recent RPT receipt and request a certification of no delinquency before closing, since unpaid RPT and its accrued interest generally follow the property, not the previous owner personally. And if it has been more than a few years since your city or municipality last revised its Schedule of Market Values, expect a possible increase — capped at 6% in the first year under RA 12001 — the next time your LGU adopts an updated schedule.
Figures in this article reflect the Local Government Code (RA 7160), Republic Act No. 12001 and its implementing rules, and published local government sources as of September 4, 2026. Rates cited (up to 1% provincial / 2% city basic RPT, 1% SEF, up to 5% idle land tax, up to 20% prompt-payment discount, 2% monthly delinquency interest) are the statutory ceilings; actual rates, discount schedules, and deadlines are set by each province, city, or municipality and can differ from and be lower than these figures. Property valuations are actively transitioning under RA 12001 as of this writing. Always confirm your property’s current assessed value, applicable rate, and any outstanding balance with your city or municipal assessor and treasurer before paying or relying on this for a transaction.
