Capital gains tax calculator
Capital gains tax on a property sale in the Philippines is 6% of the selling price or the property’s fair market value, whichever is higher. It is not 6% of your profit NIRC Sec. 24(D). It applies when an individual or a company sells land or a building held as a capital asset, and it is due within 30 days of the sale NIRC Sec. 51(C)(2)(b). Enter the figures from your deed and the property’s zonal and schedule values below.
What capital gains tax is
Capital gains tax on real property is a national tax, collected by the Bureau of Internal Revenue. The law presumes the seller made a gain, so the tax is a flat 6% of the property’s value. It does not matter whether the seller actually made a profit or a loss NIRC Sec. 24(D). The law calls it a final tax, separate from the seller’s regular income tax.
It covers sales, exchanges and other dispositions of real property in the Philippines held as a capital asset, including pacto de retro and other conditional sales NIRC Sec. 24(D). It is charged once per transaction, not every year.
Who pays
The seller. The law covers individuals, including estates and trusts NIRC Sec. 24(D), and domestic corporations selling land or buildings not used in their business NIRC Sec. 27(D)(5).
A deed of sale often says the buyer will shoulder the tax, and buyers and sellers bargain over it routinely. That changes who hands over the money. It does not change the amount, and the BIR still treats the seller as the taxpayer.
Capital gains tax applies only to a capital asset. A property is an ordinary asset if you sell it in the course of a business: a developer’s stock, a dealer’s inventory, or a building used in your trade. For an ordinary asset, the gain is taxed under the regular income tax instead. The calculator asks which you have, and does not work out the ordinary-asset case.
How it is calculated
Capital gains tax = the highest of (selling price, zonal value, schedule value) × 6%.
- Selling price: the gross price stated in the deed of sale.
- Zonal value: the BIR’s value per square metre for the street or area, multiplied by the lot’s area.
- Schedule value: the fair market value on the tax declaration, from the assessor’s schedule of market values (SMV).
Before RA 12001, the base was the higher of the price and the fair market value under NIRC Sec. 6(E). That value was itself the higher of the BIR zonal value and the assessor’s schedule NIRC Sec. 6(E). RA 12001 repealed Sec. 6(E) RA 12001 Sec. 38. The BIR now uses the approved SMV or the actual selling price, whichever is higher RA 12001 Sec. 18(a). Until an updated SMV is approved for an area, the BIR uses the existing SMV, the zonal value or the price, whichever is highest RA 12001 Sec. 29, and zonal values stay in force until they are replaced RA 12001 Sec. 31. With the same three figures, the result is the same in both periods. The calculator labels the base by the law in force on your sale date.
Worked examples
Each example below is run through the same calculator at the top of this page. The figures are its output, not typed in by hand.
Zonal value above the price
An individual sells a house and lot for ₱3,000,000 in March 2026. The BIR zonal value for the lot is ₱3,500,000, and the tax declarations add up to ₱2,000,000.
| Step | Working | Amount |
|---|---|---|
| Tax base: the highest figure, here the zonal value | highest of selling price ₱3,000,000.00, zonal value ₱3,500,000.00, schedule (SMV) value ₱2,000,000.00 | ₱3,500,000.00 |
| Capital gains tax at 6% | ₱3,500,000.00 × 6% | ₱210,000.00 |
Estimated capital gains tax: ₱210,000.00. This is an illustration. It leaves out any special levy, exemption or adjustment not described in the example.
Selling the family home and buying another
A couple sells their home for ₱4,000,000. The zonal value is ₱5,000,000. Within 18 months they put ₱3,000,000 of the proceeds into a new home, and they notify the BIR within 30 days.
| Step | Working | Amount |
|---|---|---|
| Tax base: the highest figure, here the zonal value | highest of selling price ₱4,000,000.00, zonal value ₱5,000,000.00 | ₱5,000,000.00 |
| Principal residence: only the share of the price not reinvested is taxable | ₱5,000,000.00 × ₱1,000,000.00 ÷ ₱4,000,000.00 | ₱1,250,000.00 |
| Capital gains tax at 6% | ₱1,250,000.00 × 6% | ₱75,000.00 |
Estimated capital gains tax: ₱75,000.00. This is an illustration. It leaves out any special levy, exemption or adjustment not described in the example.
The principal-residence exemption
A person who sells their principal residence pays no capital gains tax if every condition below is met NIRC Sec. 24(D):
- The proceeds are fully used to buy or build a new principal residence within 18 calendar months of the sale.
- The BIR is notified within 30 days of the sale, through the prescribed return, that the seller intends to claim the exemption.
- The seller has not used the exemption in the past 10 years.
- The historical cost of the old home carries over to the new one.
If only part of the proceeds is reinvested, the tax is charged on the unused share: base × (unused proceeds ÷ selling price) × 6% NIRC Sec. 24(D). A seller who pays the tax and then shows the intent to claim the exemption within six months of registering the transfer may claim a refund once compliance is verified NIRC Sec. 56(A)(3). The exemption is for natural persons only. A company cannot claim it.
Filing and payment
File the capital gains tax return within 30 days after each sale NIRC Sec. 51(C)(2)(b), and pay the tax when you file NIRC Sec. 56(A)(3). The Register of Deeds will not register the transfer until the BIR certifies that it was reported and the tax paid NIRC Sec. 58(E). Without that certificate, the buyer cannot get a new title.
A sale also carries documentary stamp tax, payable to the BIR, and the local transfer tax, payable to the province or city within 60 days RA 7160 Sec. 135. Their calculators are linked below.
Ask the Revenue District Office for the property’s area for the current return form and documentary requirements. This calculator gives the tax, not the paperwork.
Common mistakes
- Working out 6% of the profit. The tax is on the whole value, even at a loss.
- Using only the price on the deed. If the zonal or schedule value is higher, that is the base. Writing a low price in the deed does not lower the tax.
- Filing late because the buyer has not paid in full. The 30 days run from the sale, not from the last payment.
- Claiming the principal-residence exemption without notifying the BIR within 30 days, or on a second sale within 10 years.
- Paying capital gains tax on property sold in the course of a business. That is an ordinary asset, taxed differently.
Frequently asked questions
How much is capital gains tax on a house and lot?
6% of the selling price or the fair market value (zonal or schedule value), whichever is higher. On a property worth ₱3,500,000 that is ₱210,000.
Is capital gains tax on the profit?
No. The law presumes a gain, so the 6% is on the full value, even if you sell for less than you paid.
Who pays capital gains tax, the buyer or the seller?
The law puts it on the seller. A deed of sale can say the buyer will pay it, which is common. That changes who pays, not how much.
When is capital gains tax due?
Within 30 days after the sale. You file the return and pay at the same time.
What is the zonal value, and where do I find it?
The BIR’s value per square metre for each street or area, published by Revenue District Office. Multiply it by the lot’s area. The schedule value is the assessor’s figure on the tax declaration.
Did RA 12001 change capital gains tax?
It changed the base, not the rate. The BIR now uses the approved schedule of market values or the selling price, whichever is higher. Until an area’s new schedule is approved, existing zonal values still count. The rate is still 6%.
Can I avoid capital gains tax if I buy another house?
If you sell your principal residence, put all the proceeds into a new principal residence within 18 months, notify the BIR within 30 days, and have not used the exemption in 10 years, the tax is not due. Partial reinvestment exempts part of it.
Does a company pay capital gains tax on property?
A domestic corporation pays 6% on land or buildings it holds as capital assets, not used in its business. Property it uses in its business or sells as stock is taxed under the regular corporate income tax.
What happens if capital gains tax is not paid?
The Register of Deeds will not transfer the title until the BIR certifies the tax was paid, and late payment carries penalties under the tax code.
Is capital gains tax the only tax on a sale?
No. There is also documentary stamp tax of ₱15 per ₱1,000, and the local transfer tax of up to 0.5% in a province or 0.75% in a city, plus registration costs.
Official government sources and legal references
Every rate, ceiling and deadline on this page comes from these laws. The links open the full text as transcribed by the Lawphil Project; the Official Gazette is the record copy.
Republic Act No. 7160, the Local Government Code of 1991
- Sec. 135: Provincial transfer tax: up to 50% of 1% of the price or fair market value, whichever is higher; paid by the seller or transferor within 60 days
- Sec. 151: A city may exceed a province’s maximum rate by up to 50%
- Sec. 217: Property is classified and assessed by its actual use, wherever it is and whoever owns it
- Sec. 218: Maximum assessment levels for land and buildings, by classification and value
- Sec. 226: Appeal an assessment to the Board of Assessment Appeals within 60 days of the notice
- Sec. 234: Who is exempt from RPT: government, charitable and religious use, cooperatives and others
- Sec. 233: Basic RPT ceiling: 1% in a province, 2% in a city or Metro Manila municipality
- Sec. 235: Special Education Fund levy of 1% of assessed value
- Sec. 236: Idle land tax of up to 5% of assessed value, on top of basic RPT
- Sec. 246: RPT accrues on 1 January and is a lien on the property
- Sec. 250: Four quarterly instalments: 31 March, 30 June, 30 September, 31 December
- Sec. 251: Discount of up to 20% for paying in advance
- Sec. 252: Pay first, then protest in writing within 30 days; the treasurer decides within 60
- Sec. 253: Claim a refund of an erroneous assessment within two years
- Sec. 255: Interest of 2% a month on unpaid RPT, for at most 36 months
Republic Act No. 8424, the National Internal Revenue Code of 1997
- Sec. 6(E): Until RA 12001: tax base is the higher of the BIR zonal value and the assessor’s schedule
- Sec. 24(D): 6% final capital gains tax on individuals’ sales of real property held as capital assets; principal-residence exemption
- Sec. 27(D)(5): 6% final tax on domestic corporations’ sales of land or buildings held as capital assets
- Sec. 51(C)(2)(b): Capital gains return due within 30 days after each sale
- Sec. 56(A)(3): Capital gains tax is paid when the return is filed
- Sec. 58(E): No transfer is registered until the BIR certifies the tax was paid
- Sec. 24(A): Income tax on individuals: the graduated table, the 8% option, and the rules for mixed income (as amended by TRAIN)
- Sec. 34(A): Itemized deductions: the ordinary and necessary expenses of the trade or business, paid or incurred in the year
- Sec. 34(L): Optional standard deduction of up to 40% of gross sales or receipts for an individual (as amended by TRAIN; now Sec. 34(K))
- Sec. 51(C)(1): An individual’s annual income tax return is due on or before 15 April of the following year
- Sec. 74: Quarterly income tax of the self-employed: 15 May, 15 August and 15 November (as amended by TRAIN)
- Sec. 108(A): 12% VAT on gross receipts from the lease of property (as amended by TRAIN and EOPT)
- Sec. 109(1)(Q): VAT exemption for a residential unit leased at ₱15,000 a month or less (as amended by TRAIN)
- Sec. 109(CC): VAT exemption where other gross annual sales do not exceed ₱3,000,000 (as amended by EOPT)
- Sec. 116: 3% percentage tax on persons exempt under Sec. 109(CC) and not VAT-registered; 1% from 1 July 2020 to 30 June 2023
- Sec. 194: Documentary stamp tax on leases of land or buildings (rates since amended by TRAIN)
- Sec. 196: Documentary stamp tax on sales of real property: ₱15 per ₱1,000 or part of it
- Sec. 200(B): Documentary stamp tax return due 10 days after the month the document was made, unless regulations say otherwise
Republic Act No. 12001, the Real Property Valuation and Assessment Reform Act
- Sec. 18(a): The approved schedule of market values (SMV) is the base for RPT, local transfer tax and, with the price if higher, every national tax
- Sec. 29: Until SMVs are updated, the BIR uses the existing SMV, zonal value or price, whichever is higher; first-year cap of 6% on any RPT increase
- Sec. 30: Two-year amnesty on RPT penalties and interest, now closed
- Sec. 31: BIR zonal values stay in force until replaced, within two years
- Sec. 38: Repealed NIRC Sec. 6(E)
These calculators give estimates for planning. They are not tax or legal advice. Your LGU’s assessor and treasurer, and the Bureau of Internal Revenue, compute the amount you actually owe.
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