REAL ESTATE TAXATION :
Assessment Level for Land:
Classification Not more than
Residential 20% of FMV
Commercial/ Industrial/ Mineral 50% of FMV Agricultural 40% of FMV Timber 20% of FMV Scientific/ Cultural/ Hospital 15% of FMV
Assessment Level of Improvement:
FMV over Not over Resd’l Comm’l/ Ind’l Agr’l Timber
175,000 0% 0% 0% 0%
175,000 300,000 10% 30% 25% 45%
300,000 500,000 20% 35% 30% 50%
500,000 750,000 25% 40% 35% 55%
750,000 1,000,000 30% 50% 40% 60%
1,000,000 2,000,000 35% 60% 45% 65%
2,000,000 5,000,000 40% 70% 50% 70%
5,000,000 10,000,000 50% 75% 50% 70%
10,000,000 60% 80% 50% 70%
Rate of Real Estate Tax
a) In Provinces – not exceeding one percent of assessed value.
b In Cities and Metro Manila Municipalities – not exceeding two percent of assessed value.
Sample Computation:
Basing on the above figures, if you have a land with a fair market value of P1,000,000
20% of this is P200,000.00 and if the land is in the City, that will be 2% of 400,000 = P4,000.00 per year for the land
If your house has a fair market value of P1,000,000 also, 30% of 1,000,000 = P300,000.00 so that will be 2% of P300,000.00 = P6,000.00 per year for the house or improvement. Your total realty tax therefore for house and lot is P10,000.00 per year.
