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Deadline of Real Property Tax in the Philippines

26 January 2022
Deadline of Real Property Tax in the Philippines banner

A lot of individuals consider buying a house to be a satisfying experience. A deed of sale is regarded as the pinnacle of accomplishment for people looking to build a secure and stable way of living. But amidst this kind of accomplishment lies a corresponding responsibility.

 

Anyone considering purchasing a property should keep in mind that it comes with several duties. Among these are the real estate tax assessment, declaration, and payment. In the Philippines, all these undertakings are mandatory for all homebuyers as a civic obligation.

 

Property owners settling real property tax payments

Property owners settling real property tax payments

Local Government Code of 1991

This civic obligation can be found in the Local Government Code of 1991 or the Republic Act No. 7160 (RA 7160) that sets the structure and outlines the functions of the various levels of local government in the country. Using a decentralized system that grants greater authority, responsibility, and funding to Local Government Units, creates a more responsive local government structure.

 

According to Chapter 2 Section 18 of this code, any province, city, or municipality in the country may impose real property tax in the Philippines on land and buildings as well as other improvements, including machinery and equipment.

 

Meanwhile, Section 233 of the Local Government Code of 1991 stated the prescribed rates for the basic real property tax depending on the assessed fair market value of real estate properties in the Philippines. Here are the prescribed rates:

  • 1 % for real estate properties in the province
  • 2% for real estate properties in cities within the Metro Manila area.

 

The assessed value is the FMV or fair market value of the property multiplied by the assessment level. Based on the FMV, they would determine the assessment level based on the classification of the real property like residential, commercial, industrial, and agricultural.

 

Even though these rates may seem minimal, if these rates are applied to a big property, they may be worth a lot of money. In addition to the fundamental real property tax, the following may also be levied under real property taxation:

  1. Special Education Fund (SEF) of 1% of the assessed value of the real property goes to local schools.
  2. Tax based on the assessed value (ad valorem tax) of a real estate on idle lands of 5% of the assessed value of real property tax.
  3. Special assessment to recover at least 60% of public improvement benefitting the real property.

 

This means real property taxes in the Philippines might include all three impositions and not only the basic real property tax.

 

With this, you may come up that beyond a shadow of a doubt, one of the golden principles of property ownership is for you not to forget paying your real property tax on time- because if you don't, you may find yourself regretting your decision later on. So if you haven't made your financial new year's resolution for this year, make sure to include paying your real property taxes on time.

 

In addition to putting money aside and making prudent investments, it's a good idea to pay your bills on time. You'll save more money and have fewer headaches in the long run if you plan ahead with your finances. Real estate taxes are the second most important financial obligation for most homeowners after their mortgage payments. If you want to save your money and avoid tax issues in 2022, be sure to pay your dues as soon as possible.

 

Also Read: How to Compute Income Tax Philippines

 

Deadline for the Real property tax payments in 2022

There are two ways to pay real property taxes in the Philippines: either for a whole year or in quarterly payments. To avoid a late payment penalty, you must settle off your real property taxes by January 31, 2022, if you would like to pay it in full for the entire year. On the other hand, if you prefer to pay your obligations every quarter, you have the following deadlines to meet:

 

First quarter: March 31, 2022 (on or before)

Second quarter: June 30, 2022 (on or before)

Third quarter: September 30, 2022 (on or before)

Fourth quarter: December 31, 2022 (on or before)

 

Dates to mark on your calendars for payment of real property

Dates to mark on your calendars for payment of real property

If you haven't been able to pay your taxes in the last few months, your local government unit (LGU) may be providing tax amnesty programs that forgo the payment of fines and interest. Several Metro Manila towns, including Pasay, have lately given amnesty to taxpayers who have failed to pay their real estate taxes- it doesn't matter whether a delinquent property owner receives the notification of the delinquency or not.

 

You may get a 10% to 20% reduction on taxes if you make advance payments. On the other hand, late payments are subject to a 2% interest charge per unpaid amount. There is a maximum penalty of 72% for failure to pay over a period of 36 months or three years.

 

Paying your real property taxes during the pandemic

At the height of the pandemic, online tax payment portals have been developed by local governments in order to secure the health of their taxpayers. It's safe and easy to pay your bills using these digital platforms. The following are links to various websites of local government units around the country:

For Metro Manila:

  • Caloocan: https://online.caloocancity.gov.ph/WebPortal/Register.aspx
  • Makati: https://makationlinepayments.com/search
  • Mandaluyong: https://online.mandaluyong.gov.ph/Mandaluyong/OnlineServices/login
  • Manila: https://www.cityofmanila.ph/
  • Muntinlupa: https://rpt.muntinlupacity.gov.ph/
  • Pasig: https://payments.pasigcity.gov.ph/cgibin/cgiip.exe/WService=PasigOS/login.html
  • Quezon City: https://qceservices.quezoncity.gov.ph/
  • San Juan: https://www.cityofsanjuan.ph/
  • Taguig: https://trace.taguig.gov.ph/
  • Valenzuela: https://online.valenzuela.gov.ph/Valenzuela/OnlineServices/recaptcha

 

For Luzon:

  • Baguio, Benguet: https://www.baguioinmypocket.ph/
  • Angeles, Pampanga: https://www.cityofangeles.ph/
  • Marilao, Bulacan: https://www.erpt-marilao.com/home
  • Antipolo, Rizal: https://antipoloonline.egapsonline.com/antipoloos/public/login
  • Puerto Princesa, Palawan: https://www.filipizen.com/partner/palawan_puertoprincesa/rptis/rptbilling
  • Naga, Camarines Sur: https://rpt.naga.gov.ph/
  • Ligao, Albay: https://www.filipizen.com/partner/albay_ligao/rptis/rptbilling

 

For Visayas and Mindanao:

  • Kalibo, Aklan: https://kaliboaklan.gov.ph/kalibo-treasurers-office-is-now-accepting-online-payments/
  • Tagbilaran, Bohol: https://tagbilaran.gov.ph/homepage/e-payment/
  • Davao City, Davao del Sur: http://filipinopay.com/dbp/
  • Cagayan de Oro, Misamis Oriental: http://citytreasurer.cagayandeoro.gov.ph/$/

 

You may still pay your taxes at the Treasurer's Office of your local government unit if you prefer the old-fashioned way of payment. Although, you have to make sure that when visiting government offices, be aware of the health regulations in place to ensure your safety. Prepare your contact tracing QR code ahead of time to avoid hassles while entering public places.

 

Also Read: A Beginner’s Guide to Estate Tax

 

Speaking of taxes, do you know that you can claim a tax deduction benefit when you buy a house and lot for sale through a bank home loan?

 

It is possible to deduct both the principal and interest payments on a mortgaged piece of real estate when property owners purchased their home through a bank housing loan. Taking a deduction for interest paid to the proponent is allowed for repayment. When figuring up your yearly taxes, this deduction adds up to significant savings!

 

Real Property Tax must be paid annually or by quarterly installments

Real Property Tax must be paid annually or by quarterly installments

Suppose you’re looking for a community provider that offers flexible payment schemes like bank financing. In that case, Lumina Homes is one of the top-leading housing segments that can provide you quality house and lot property with great amenities and innovations!

 

Purchase your house and lot from Lumina Homes via bank home loan and Level Up this 2022!

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