A Complete Guide To Paying Real Property Taxes In The Philippines This 2022: Rates, Deadlines, And Where To Pay

What do you need to know about real estate taxes in the Philippines this 2022?

1. What is real property tax
2. Who should pay real property tax  
3. What are the rates of real property tax in the Philippines this 2022 
4. When is the deadline of real property tax payments this 2022
5. What are the consequences of failing to pay real property tax or the benefits of paying in advance  
6. Where to pay real property tax payments this 2022

 

Buying a real estate property is considered a major life milestone for anyone. In the Philippines, signing a deed of sale for a house for sale in Cebu for example, translates to reaching the pinnacle of success as it is a key to a secure life. However, for those planning to buy a property also lies several responsibilities, which include paying real property taxes. In this guide, we discuss some of the most frequently asked questions about real estate taxes in the Philippines this 2022. 

 

What Is Real Property Tax?

Paying real property tax is a civic duty for all homebuyers in the Philippines. This civic duty can be found in the Republic Act 7160 (RA 7160) or Local Government Code of 1991 which states that the local government units are granted authority over creating revenue sources. Real property tax is a type of tax levied by the local government on properties as a source of income.  

According to Chapter 2 Section 18 of RA 7160, any province, city, or municipality in the Philippines may impose a real property tax on building, land, improvements on the building and/or land, machinery, and equipment.

 

Who Should Pay Real Property Tax?

Real property taxes in the Philippines should be paid by the people who own or whose names are indicated on certificates and titles of property ownership, regardless of whether the property is for commercial or residential use. 

 

What Are The Rates Of Real Property Tax In The Philippines This 2022

According to Section 233 of the RA 7160, the rates of real property tax (RPT) in the Philippines will depend on the assessed value and location of the property. 

The prescribed rate for properties within the Metropolitan Manila area is 2%, while the prescribed rate for properties within provincial areas is 1% of the real property. To compute your RPT, multiply the RPT rate along with the property’s assessed value. The assessment levels used to determine real property value are prescribed in Section 218 of the RA 7160 based on classifications: residential, commercial, industrial, agricultural, mineral, or timberland.  

 

When Is The Deadline For Real Property Tax Payments This 2022?

Property owners can choose to pay their real property tax in full for a whole year or in the form of quarterly installments. 

For those who want to pay their real property tax in full the deadline is on or before January 31, 2022. For those who want to pay their real property tax in quarterly installments, the deadline dates are:

• 1st quarter: On or before March 31, 2022
• 2nd quarter: On or before June 30, 2022
• 3rd quarter: On or before September 30, 2022
• 4th quarter: On or before December 31, 2022

 

What Are The Consequences of Failing To Pay Real Property Tax or The Benefits of Paying In Advance?

You can always pay your real property tax in advance. Several local government units (LGUs) offer discounts of up to 20% for advanced payments. 

On the other hand, late payments are subject to a 2% interest per unpaid amount. This amount can rise to a maximum of 72% when failing to pay for 3 years. If you haven’t been able to pay your real property taxes, certain LGUs like the Pasay LGU, may provide tax amnesty programs to forgo the payment of interests and fines. 

 

Where To Pay Real Property Tax Payments This 2022?

Given the current pandemic situation, some LGUs opened up online payment options for real property taxes in the Philippines this 2022. You will be able to settle your dues conveniently and safely. Here is a list of websites for some LGUs in the Philippines that allow online payment for real property taxes: 

• Pasig
• Quezon City
• San Juan
• Taguig
• Cagayan de Oro
• Cebu 
• Pampanga, Angeles
• Caloocan 
• Makati
• Manila
• Mandaluyong
• Muntinlupa

Those who want to pay their real property taxes this 2022 traditionally may still do so by proceeding to the Treasurer’s Office of your LGU. Make sure to be mindful of the safety protocols (e.g. contact tracing, wearing of face masks, etc.) in government offices to maintain safety and avoid any hassle. 

 

Key Takeaway

Buying your own property is a very fulfilling experience. But, remember that with home buying comes the civic duty of paying real property taxes. This guide answers everything you need to know about real estate taxes in the Philippines this 2022 to help you. Make sure to pay your real property tax on time to avoid headache-inducing hassles and penalties.