How Does Real Property Tax (Amilyar) Work in the Philippines?
Quick answer
Real property tax (amilyar) is a yearly local tax on land, buildings and machinery. The owner, or anyone with a legal interest in the property, pays it to the city or municipal treasurer. It is charged on assessed value (market value × assessment level): up to 1% in a province or 2% in a city or Metro Manila municipality, plus 1% for the Special Education Fund. It can be paid quarterly. Late payment costs 2% a month for up to 36 months, and the unpaid tax is a lien that can end in auction (RA 7160, Sections 233, 235, 250, 255 and 257).
To appeal a valuation, go to the Local Board of Assessment Appeals within 60 days of receiving the notice of assessment. To protest the tax, pay first, then protest within 30 days (Sections 226 and 252). First action: get a statement of account from the treasurer and your tax declaration from the assessor.
Who has to pay real property tax?
Property is assessed “in the name of the owner or administrator, or anyone having legal interest in the property” (Section 205(a)), and the lien follows the property (Section 257).
- Owners and buyers. They must file a sworn declaration with the assessor (Section 202). A buyer, or anyone who builds an improvement, must declare it within 60 days (Section 203).
- Heirs and co-owners. Undivided property can be assessed in the name of the estate or the heirs as a group. Each heir or co-owner is liable “severally and proportionately” (Section 205(b)). CivilLaw.ph explains who pays on inherited property before partition and what paying alone for years does and does not prove.
- Private users of government property. Government property loses its exemption once its beneficial use has been granted to a taxable person (Section 234(a)).
Paying amilyar does not on its own prove ownership; see land title vs tax declaration.
What are the rate caps and the Special Education Fund levy?
Real property tax is not collected by the BIR, unlike national taxes such as income tax. Provinces, cities and Metro Manila municipalities set rates by ordinance, up to these ceilings (Section 232):
| Levy | Province | City or Metro Manila municipality | Legal basis |
|---|---|---|---|
| Basic real property tax | Up to 1% of assessed value | Up to 2% of assessed value | RA 7160, Section 233 |
| Special Education Fund | 1% of assessed value, if levied | 1% of assessed value, if levied | RA 7160, Section 235 |
| Idle land tax | Up to 5% of assessed value | Up to 5% of assessed value | RA 7160, Section 236 |
| Usual combined ceiling, basic + SEF | 2% of assessed value | 3% of assessed value | Sections 233 and 235 |
Outside Metro Manila, municipalities collect the provincial tax (Section 247). Your local revenue code sets the actual rate.
How is assessed value different from market value?
- Market value comes from the schedule of market values (SMV), a table of base unit values the local assessor prepares (RA 12001, Sections 4(l) and 4(p)).
- Assessment level is the taxable percentage. It depends on the property’s actual use, whoever owns it (RA 7160, Section 217), and is set by ordinance up to the Section 218 ceilings.
- Assessed value is market value × assessment level. The tax rate is applied to this figure (RA 7160, Section 199(h)).
The Section 218 ceilings for land are below. Buildings and machinery have their own graduated tables in the same section.
| Land class (actual use) | Maximum assessment level | Legal basis |
|---|---|---|
| Residential | 20% | RA 7160, Section 218(a) |
| Agricultural | 40% | RA 7160, Section 218(a) |
| Commercial, industrial or mineral | 50% | RA 7160, Section 218(a) |
| Timberland | 20% | RA 7160, Section 218(a) |
You get written notice of a new assessment within 30 days; it usually takes effect the next January 1 (Sections 221 and 223).
What did RA 12001 change?
RA 12001, the Real Property Valuation and Assessment Reform Act, was approved on June 13, 2024. It took effect 15 days after publication (Section 39). Davao City treats the effective date as July 5, 2024; Naga City uses July 6, 2024 (Davao City; Naga City Ordinance No. 2024-115). For owners, it changed five things:
- DOF-certified schedules of market values. Assessors prepare the SMV under the Philippine Valuation Standards after two public consultations; the Bureau of Local Government Finance (BLGF) reviews it and the Secretary of Finance certifies it. If the Secretary does not act in time, the old SMV stays (Sections 13–16). Old Section 212, under which councils enacted the schedule, was repealed (Section 38).
- Regular updates. SMVs had to be updated within two years, then every three years (Section 19).
- 6% first-year cap. In the first year a new SMV applies, any increase in real property tax is capped at 6% of the tax assessed before the Act. It applies to each levy, including the SEF; LGUs may cap later years (Section 29).
- One valuation base. For national taxes, the BIR uses the SMV or the actual selling price, whichever is higher (Sections 18(a)(3) and 29).
- A two-year amnesty, now ended. Penalties and interest on tax unpaid before the Act were waived for owners who paid within two years, except for auctioned property, compromises and pending court cases (Section 30). Davao City’s window ran from July 5, 2024 to July 5, 2026. This run found no extending law.
Rates, installments, interest and appeal periods are unchanged.
When is real property tax due, and are there discounts?
The tax accrues on January 1 and is a lien from that date (Section 246). The basic tax and SEF can be paid without interest in four equal installments (Section 250):
| Installment | Due on or before | If missed |
|---|---|---|
| First | March 31 | 2% interest per month on the unpaid amount |
| Second | June 30 | 2% interest per month on the unpaid amount |
| Third | September 30 | 2% interest per month on the unpaid amount |
| Fourth | December 31 | 2% interest per month on the unpaid amount |
Payments settle older arrears first (Section 250). The council may grant a discount of up to 20% for advance or prompt payment (Section 251).
What happens if you don’t pay?
Interest runs at 2% a month, with any fraction of a month counted as a full month. It stops at 36 months, or 72% of the tax (Section 255). The LGU can then levy or sue (Section 256):
- Warrant of levy, annotated on the tax declaration and title (Section 258).
- Auction, advertised within 30 days of serving the warrant. You can stop it by paying the tax, interest and costs before the sale date (Section 260).
- One year to redeem from the sale date. You pay the tax, interest and costs, plus up to 2% a month on the price, and keep possession meanwhile (Section 261). If you don’t redeem, the buyer gets a final deed (Section 262).
The LGU has 5 years from the due date to collect, or 10 years from discovering fraud (Section 270). Challenging a tax sale in court requires first depositing the sale price plus 2% a month (Section 267).
Fictional example: a residential lot in a city
Carla (invented) owns a city lot with an SMV market value of ₱2,000,000; the city sets the residential land assessment level at 20%. Her assessed value is ₱400,000. At 2% basic tax plus 1% SEF, she pays ₱12,000 a year, or ₱3,000 a quarter. She pays nothing until August 15, then settles the first two installments. The March 31 installment is five months late counting the partial month (10%, ₱300) and the June 30 installment is two months late (4%, ₱120), so ₱420 in interest (Section 255). When a new SMV takes effect, her first-year tax can rise to at most ₱12,720 (6%, RA 12001 Section 29). A lower local rate or a discount would change these figures.
Should you appeal the assessment or protest the tax?
| Your complaint | Remedy | Deadline and trigger | Where |
|---|---|---|---|
| Wrong market value, classification or level | Appeal the assessment | 60 days from receipt of notice of assessment | Local Board of Assessment Appeals (Section 226) |
| Tax wrongly computed or collected | Pay under protest | Written protest within 30 days from payment | Provincial, city or Metro Manila municipal treasurer (Section 252) |
| Protest denied or undecided after 60 days | Assessment appeal remedies | Not stated in Section 252; act promptly | Book II, Title II, Chapter 3 of the Code (Section 252(d)) |
| LBAA decision unfavorable | Appeal | 30 days from receipt of decision | Central Board of Assessment Appeals (Section 229(c)) |
| CBAA decision unfavorable | Petition for review | 30 days from receipt | Court of Tax Appeals en banc (RA 9282, Sections 7 and 11) |
An appeal does not suspend collection (Section 231). The LBAA, chaired by the Register of Deeds, must decide within 120 days (Sections 227 and 229). In Camp John Hay Development Corporation v. Central Board of Assessment Appeals, G.R. No. 169234, October 2, 2013, the Supreme Court denied the owner’s petition. It held that payment under protest is mandatory before an appeal questioning an assessment’s correctness, including a claim of exemption, and that the LBAA must decide the facts first (Lawphil). The ruling arose from an exemption claim. If an assessment is later reduced, claim a refund or credit within 2 years from becoming entitled to the reduction (Section 253).
Which properties are exempt?
Section 234 exempts the following:
- government property, unless a taxable person has its beneficial use;
- charitable institutions, churches with their parsonages or convents, mosques, and non-profit or religious cemeteries;
- property “actually, directly, and exclusively used” for religious, charitable or educational purposes;
- water and power machinery of water districts and of GOCCs;
- property of registered cooperatives;
- pollution-control equipment.
Older exemptions were withdrawn. To claim one, file proof with the assessor within 30 days of declaring the property, or it will be listed as taxable (Section 206).
Your options and what to do next
If you received a new or higher assessment
Check the area, classification and actual use against your tax declaration, and recompute using the SMV and assessment-level ordinance. If it is wrong, file a sworn LBAA petition within 60 days, with your tax declaration and proof such as appraisals or photos of actual use (Section 226). Keep paying meanwhile.
If the treasurer’s bill looks wrong
Pay the bill and have “paid under protest” written on the official receipt. File a written protest with the treasurer within 30 days; the treasurer has 60 days to decide (Section 252).
If you are delinquent or facing a levy
Get a statement of account. Paying the tax, interest and costs before the auction date stops the sale (Section 260). If the property has already been sold, redeem within one year (Section 261).
If you co-own inherited property
Each heir is liable for a proportionate share (Section 205(b)), but the levy can reach the whole property. Agree in writing on who pays and keep receipts.
Where to get help
The city or municipal treasurer collects the tax (Section 247), and the assessor handles tax declarations and valuations. The LBAA, then the Central Board of Assessment Appeals, then the Court of Tax Appeals hear disputes. Office addresses, hours and contacts were not verified this run; get them from your LGU’s official website. For more, see more tax questions answered.
Key takeaways
- Basic tax caps are 1% in a province and 2% in a city or Metro Manila municipality, plus 1% SEF.
- Quarterly installments are due March 31, June 30, September 30 and December 31.
- Late payment costs 2% a month for up to 36 months. You can redeem auctioned property within one year.
- Appeal a valuation to the LBAA within 60 days. Protest the tax within 30 days after paying.
- RA 12001 introduced DOF-certified SMVs and a 6% first-year cap. Its amnesty ended in July 2026.
Frequently asked questions
Who is liable for real property tax in the Philippines?
The owner, the administrator, or anyone with a legal interest in the property in whose name it is assessed (RA 7160, Section 205(a)). Heirs of an undivided estate are proportionately liable (Section 205(b)).
What is the maximum real property tax rate in a city?
A city or Metro Manila municipality can charge up to 2% of assessed value as basic tax and another 1% for the Special Education Fund, so 3% in total (Sections 233(b) and 235). In a province, the basic tax is capped at 1%.
How is assessed value computed?
Market value from the schedule of market values, times the assessment level the local ordinance sets for the property’s actual use, within the Section 218 ceilings (20% for residential land) (RA 7160, Sections 199(h) and 218).
What is the penalty for late payment of amilyar?
Interest of 2% a month on the unpaid amount, with a fraction of a month counted as a full month, for up to 36 months (RA 7160, Section 255). The property can also be levied on and sold at auction (Sections 258 and 260).
How long do I have to redeem property sold for unpaid real property tax?
One year from the date of sale. You pay the tax, interest and costs, plus up to 2% a month on the purchase price, and you keep possession during that year (RA 7160, Section 261).
Is the real property tax amnesty under RA 12001 still available?
Probably not. RA 12001 Section 30 limited it to two years after effectivity; Davao City’s window closed July 5, 2026. No extending law was found, so ask your treasurer.
Kailangan ko bang bayaran muna ang amilyar bago mag-protest?
Oo. Ayon sa Section 252 ng RA 7160, hindi tatanggapin ang protest hangga’t hindi ka pa nagbabayad. Ipasulat ang “paid under protest” sa resibo, tapos mag-file ng written protest sa treasurer within 30 days mula nang magbayad ka.
Ilang araw ang palugit para i-appeal ang bagong assessment ng lupa ko?
Animnapung (60) araw mula nang matanggap mo ang written notice of assessment. Mag-file ng sworn petition sa Local Board of Assessment Appeals, kasama ang tax declaration mo (Section 226). Habang naka-appeal, tuloy pa rin ang pagbabayad (Section 231).
May discount ba kapag maaga akong nagbayad ng amilyar?
Puwede, pero depende sa LGU mo. Sa Section 251, puwedeng magbigay ang sanggunian ng discount na hanggang 20% kapag advance o on time ang bayad. Itanong sa treasurer’s office kung magkano ang discount ninyo at kailan ang deadline.
Unsa ang mahitabo kung dili nako mabayran ang amilyar sa akong yuta?
Modagan ang interes nga 2% matag bulan, apan dili molapas sa 36 ka bulan (Section 255). Mahimong i-levy ug i-subasta ang yuta (Sections 258 ug 260). Kung nabaligya na kini, aduna kay usa ka tuig aron ma-redeem (Section 261).
Sources
- RA 7160 (Local Government Code), Book II, Title II, Sections 199–270.
- RA 12001 (approved June 13, 2024), Sections 4, 13–19, 29–31, 38 and 39.
- RA 9282, Sections 7 and 11 (CTA jurisdiction).
- Camp John Hay Development Corporation v. Central Board of Assessment Appeals, G.R. No. 169234, October 2, 2013.
- Davao City Government, RA 12001 amnesty ordinance notice.
- Naga City Ordinance No. 2024-115 (enacted October 8, 2024).
Sources rechecked as of: November 11, 2026
This guide is general information about Philippine tax law, not tax or legal advice for your situation; read our legal disclaimer.
Last correction: November 11, 2026. Corrected the fictional example: paying on August 15 leaves both the March 31 and June 30 installments late, so it now shows ₱300 + ₱120 = ₱420 interest; added Article and FAQPage structured data matching the ten visible FAQs. Checked: RA 12001 full text (Sections 29, 30, 38 and 39); the example’s arithmetic was re-run. RA 7160 was not re-fetched in this correction.
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