Property transfer tax and selling costs calculator
Selling a property in the Philippines brings three taxes. Capital gains tax is 6% NIRC Sec. 24(D). Documentary stamp tax is 1.5% NIRC Sec. 196. The local transfer tax is up to 0.5% in a province or 0.75% in a city RA 7160 Sec. 135 RA 7160 Sec. 151. The calculator below works out the transfer tax and, if you tick them, the other two, then adds any fees you enter, such as registration, notarial or broker’s fees.
What the transfer tax is
The transfer tax is a local tax on the sale, donation, barter or any other transfer of ownership of real property. It is levied by the province, or by the city where the property is in a city RA 7160 Sec. 135. It is a one-off tax on the transaction, separate from the yearly real property tax.
Transfers under the agrarian reform law, RA 6657, are exempt RA 7160 Sec. 135.
Who pays
The law puts the transfer tax on the seller, donor, transferor, executor or administrator RA 7160 Sec. 135. Capital gains tax is likewise the seller’s NIRC Sec. 24(D). In practice, the deed of sale says who carries each cost. A common split is the seller paying capital gains tax and the buyer paying documentary stamp tax, transfer tax and registration, but it is only a custom and anything can be agreed. Agree it in writing before signing.
How it is calculated
Transfer tax = the higher of the selling price and the fair market value × your LGU’s rate RA 7160 Sec. 135. Under RA 12001, the market value used for the local transfer tax is the approved schedule of market values RA 12001 Sec. 18(a): the market value on the tax declaration.
| Where the property is | Transfer tax, at most | Law |
|---|---|---|
| Municipality in a province (levied by the province) | 0.5% | RA 7160 Sec. 135 |
| City | 0.75% | RA 7160 Secs. 135 and 151 |
| Municipality in Metro Manila | Set by its revenue code | Not fixed by these sections |
A province may charge up to 50% of 1%, which is 0.5% RA 7160 Sec. 135. A city may exceed a province’s maximum by up to half, which gives 0.75% RA 7160 Sec. 151. The calculator refuses a rate above these ceilings. For a Metro Manila municipality, it asks for the rate.
Capital gains tax and documentary stamp tax use a different base: the highest of the price, the BIR zonal value and the schedule value. So the calculator shows two bases when they differ.
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.
A city sale, everything in
A house and lot in a city sells for ₱5,000,000 in April 2026. The tax declaration shows a market value of ₱4,000,000 and the zonal value is ₱6,000,000. The rate is not known, so the city maximum is used. The registration fee is estimated at ₱20,000.
| Step | Working | Amount |
|---|---|---|
| Transfer tax base: the higher of the price and the schedule value, here the price | higher of ₱5,000,000.00 and ₱4,000,000.00 | ₱5,000,000.00 |
| Local transfer tax at 0.75% (legal maximum) | ₱5,000,000.00 × 0.75% | ₱37,500.00 |
| National tax base: the highest figure, here the zonal value | highest of selling price ₱5,000,000.00, zonal value ₱6,000,000.00, schedule (SMV) value ₱4,000,000.00 | ₱6,000,000.00 |
| Capital gains tax at 6% | ₱6,000,000.00 × 6% | ₱360,000.00 |
| Documentary stamp tax: 6,000 units of ₱1,000 at ₱15 | 6,000 × ₱15.00 | ₱90,000.00 |
| Registration fee (estimate) (your figure) | ₱20,000.00 | ₱20,000.00 |
| Total | ₱37,500.00 + ₱360,000.00 + ₱90,000.00 + ₱20,000.00 | ₱507,500.00 |
Estimated transfer taxes and costs: ₱507,500.00. This is an illustration. It leaves out any special levy, exemption or adjustment not described in the example.
Transfer tax alone, in a province
A lot in a municipality sells for ₱1,200,000. Its declared market value is ₱1,500,000, and the province charges 0.5%.
| Step | Working | Amount |
|---|---|---|
| Transfer tax base: the higher of the price and the schedule value, here the schedule value | higher of ₱1,200,000.00 and ₱1,500,000.00 | ₱1,500,000.00 |
| Local transfer tax at 0.5% (your LGU’s rate) | ₱1,500,000.00 × 0.5% | ₱7,500.00 |
Estimated transfer taxes and costs: ₱7,500.00. This is an illustration. It leaves out any special levy, exemption or adjustment not described in the example.
When and where to pay
- Transfer tax: to the provincial or city treasurer within 60 days of the date the deed was signed, or of the date of death for a transfer from an estate RA 7160 Sec. 135.
- The Register of Deeds asks for proof of payment before registering the deed, and the assessor asks for it before cancelling the old tax declaration RA 7160 Sec. 135.
- Capital gains tax: to the BIR within 30 days of the sale NIRC Sec. 51(C)(2)(b).
- Documentary stamp tax: to the BIR within 10 days after the end of the month of signing, unless regulations set another date NIRC Sec. 200(B).
- The Register of Deeds registers the transfer only after the BIR certifies that the national taxes were paid NIRC Sec. 58(E).
Other costs of a sale
Registration fees at the Register of Deeds, notarial fees, broker’s commission and the cost of certified true copies are not taxes. They vary by office, by value and by agreement. Enter the ones you know in the calculator. It adds them to the total and marks them as your figures. It never fills them in for you.
Before buying, check that the year’s real property tax is paid. Unpaid amilyar stays with the property RA 7160 Sec. 246.
Common mistakes
- Missing the 60-day deadline for transfer tax because the BIR process is still running. The two clocks run separately.
- Using the BIR zonal value for the transfer tax. The local base is the price or the schedule value.
- Assuming the buyer pays everything. Absent an agreement, the law puts capital gains tax and transfer tax on the seller.
- Budgeting from the price alone. If the zonal or schedule value is higher, every tax is higher.
Frequently asked questions
How much is transfer tax in the Philippines?
Up to 0.5% of the price or market value, whichever is higher, in a province, and up to 0.75% in a city. Your LGU’s revenue code sets the exact rate.
Who pays the transfer tax?
The law names the seller, donor or transferor. The deed of sale can shift it to the buyer, which is common.
When is transfer tax due?
Within 60 days of signing the deed, or of the date of death for an inherited property.
What are all the taxes when selling a house and lot?
Capital gains tax of 6%, documentary stamp tax of 1.5% and the local transfer tax of up to 0.5% or 0.75%. Registration and notarial fees come on top. On a ₱5,000,000 sale with a ₱6,000,000 zonal value, the three taxes alone come to about ₱487,500.
Is transfer tax based on the zonal value?
No. It is the selling price or the fair market value on the tax declaration, whichever is higher. The zonal value is a BIR figure for the national taxes.
Do I pay transfer tax on an inherited property?
Yes. Sec. 135 covers any mode of transferring ownership, and for an estate the 60 days run from the date of death. Estate tax is separate.
Is a donation of property subject to transfer tax?
Yes. Donation is one of the transfers Sec. 135 names. Donor’s tax and documentary stamp tax are separate.
Why does the calculator ask for a Metro Manila municipality’s rate?
Because the sections that set the 0.5% and 0.75% ceilings do not set one for a municipality in Metro Manila. Rather than guess, the calculator asks you for the rate in your revenue code.
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. 10963, Tax Reform for Acceleration and Inclusion (TRAIN) Law
- Sec. 4: Amended NIRC Sec. 6(E): zonal values adjusted every three years
- Sec. 67: Amended NIRC Sec. 194: DST on leases of ₱6 for the first ₱2,000 and ₱2 per ₱1,000 after, each year of the term
- Sec. 69: Amended NIRC Sec. 196: kept ₱15 per ₱1,000 on sales of real property
- Sec. 5: Amended NIRC Sec. 24(A): the 2018–2022 and 2023-onward income tax tables, the 8% option and mixed income
- Sec. 11: Amended NIRC Sec. 34: optional standard deduction of 40% of gross sales or receipts
- Sec. 20: Amended NIRC Sec. 74: quarterly income tax on 15 May, 15 August and 15 November
- Sec. 34: Amended NIRC Sec. 109: residential lease up to ₱15,000 a month exempt; ₱3,000,000 VAT threshold
- Sec. 37: Amended NIRC Sec. 114: VAT returns quarterly from 1 January 2023, 25 days after the quarter
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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