Steps In Paying 2022 Real Property Taxes In The Philippines

2022 Feb 20 | by Apple Barretto

What are the steps in paying 2022 real property taxes in the Philippines?

Check for online payment options
Go to the city treasurer’s office
Secure an order of payment from the assessor’s office
Pay the amount stated in the order of payment
Wait for the official receipt to be issued

Being a property owner is a fulfilling milestone for anyone. In the Philippines, signing a deed of sale is seen as a measure of success. However, everyone that plans to buy property also entails responsibility. For one, it is a homebuyer’s civic duty to pay real property taxes. In this article, we look more into what is real property tax and what are the steps in paying 2022 real property taxes in the Philippines.

What Is Real Property Tax?

According to the Republic Act 7160 or the Local Government Code of 1991, local governments are authorized to collect their source of revenue to fund public spending. Real property tax (RPT) is a type of tax that is levied by the local government on properties. Building, land, improvements on the building and/or land, and machinery are taxable. Real property tax should be paid annually or quarterly by the people who own or whose names are indicated on certificates and titles of ownership.

When Is The Deadline For 2022 Real Property Tax Payments?

As a property owner, you can choose to pay your real property tax in full for the entire year of or in quarterly installments. If you want to pay your real property tax in full the deadline is on or before January 31, 2022. If you pay in quarterly installments, the deadline dates are as follows:

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

Keep in mind that you can always pay your real property tax in advance. Some local government units (LGUs) offer 10% to 20% discounts on advanced payments. Late payments, however, are subjected to a 2% interest per unpaid amount. This amount can reach a maximum of 72% if you fail to pay for 36 months or 3 years.

Steps in Paying 2022 Real Property Taxes in the Philippines

The steps in paying 2022 real property taxes in the Philippines will depend on the payment methods being offered by your local government unit.

Check For Online Payment Options

Because of the pandemic, some LGUs have introduced online portals for paying real property taxes in the Philippines this 2022. You can take advantage of these online platforms to settle your dues safely and conveniently. Here is a list of some websites for different LGUs:

Follow the instructions stated on the websites for payment. But, if you want to pay your real property taxes using the traditional, face-to-face route, you can still do so.

Go To The City Treasurer’s Office

The Treasurer’s Office of a municipality is responsible for collecting the payment of real property taxes in the Philippines. The Treasurer’s Office is usually located in the City Hall. Given the current health crisis, taxpayers should be mindful of the safety protocols being observed in their government offices to avoid any hassle in the entry.

Secure An Order of Payment From The Assessor’s Office

For existing establishments, taxpayers have to bring the tax declaration number or official receipt of the previous year’s tax payment for the issuance of the Order of Payment.

For transferred real properties, taxpayers need to present the following documents for the issuance of a new tax declaration:

Transfer Certificate of Title Certified True Copy
Deed of Sale/Donation/Transfer
SEC Registration (for corporations) or DTI Certificate (for single proprietor)
BIR receipt
Capital gains/donors/estate tax certificate
Latest real property tax payment receipt and/or tax clearance from the Treasurer’s Office
Approved plan of property (land) if subdivided or vicinity map
Transfer tax receipt

Pay The Tax Amount Stated In The Order of Payment

Proceed to present the Order of Payment to pay the amount due. Take note that the rates of real property taxes depend on the location of the property and the property’s assessed value. Within the Metro Manila Area, the assessed value of real property is 2%. Within provincial areas, the assessed value of real property is 1%.

Wait For The Official Receipt To Be Issued

After payment, make sure to wait for the official receipt to be issued as this will be used for the next time you pay for your real property tax.

Key Takeaway

Buying your own property is a rewarding experience. But remember that it is your civic duty to pay real property taxes. In this article, we’ve listed down the steps in paying 2022 real property taxes in the Philippines to help you get started.

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