Estate Tax: 6%, and the Amnesty Has Closed
Bureau of Internal Revenue · taxes
Quick answer
Estate tax is 6% of the net estate. A ₱5,000,000.00 standard deduction and up to ₱10,000,000.00 for the family home come off first, so many modest estates owe nothing. The return is due within 1 year of death. The estate tax amnesty closed on 14 June 2025.
Last verified
Where these figures come from
About these figures: the numbers below come from BIR's official published sources: Bureau of Internal Revenue | National Internal Revenue Code of 1997, as amended (https://www.bir.gov.ph/tax-code, retrieved 2026-09-01); Official Gazette | Republic Act No. 11956 (https://www.officialgazette.gov.ph/2023/08/05/republic-act-no-11956/, retrieved 2026-09-01). Agencies change fees and rates without notice, so confirm with BIR before you rely on them. Last verified: 2026-09-01.
The amnesty has closed
If you came here for the estate tax amnesty, the short answer is that its availment period ended on 14 June 2025.
That date comes from the title of RA 11956, signed 5 August 2023, which is itself the second extension:
| Act | Signed | Effect |
|---|---|---|
| RA 11213, the Tax Amnesty Act | 2019 | Created the estate tax amnesty |
| RA 11569 | 30 June 2021 | First extension |
| RA 11956 | 5 August 2023 | Extended availment until 14 June 2025 |
We searched the Official Gazette for a further extending statute and found none. Two qualifications are worth stating plainly. Congress has extended this amnesty twice already, so a third extension is not unthinkable. And a negative search result is weaker evidence than a positive one. Confirm with BIR before acting on the assumption that it is closed, particularly if an estate has been sitting unsettled.
What follows is the regular regime, which is what applies now.
The rate
Estate tax is 6% of the net estate, under Section 84, for every decedent whether resident or nonresident of the Philippines.
The word doing the work is net. The 6% applies after the deductions in Section 86, not to the gross value of the property. For many ordinary estates those deductions exceed the estate itself.
The deductions that usually decide it
For the estate of a citizen or resident:
| Deduction | Amount |
|---|---|
| Standard deduction | ₱5,000,000.00 |
| Family home | Current fair market value, up to ₱10,000,000.00 |
| Claims against the estate | Actual, subject to conditions |
| Claims against insolvent persons | Where the value is included in the gross estate |
| Unpaid mortgages or indebtedness | Where the property value is included undiminished |
| Amounts received by heirs under RA 4917 | Where included in the gross estate |
For a nonresident who is not a citizen, the standard deduction is ₱500,000.00 rather than ₱5,000,000.00, and it applies only against the part of the estate situated in the Philippines.
The ₱5,000,000.00 standard deduction requires no proof. It is simply deducted. That single figure is why a great many estates in the Philippines owe no estate tax at all, and why families who assume they face a large bill often do not.
A worked example
An estate consisting of a family home worth ₱8,000,000.00 and ₱2,000,000.00 of other assets:
| Step | Figure |
|---|---|
| Gross estate | ₱10,000,000.00 |
| Standard deduction | ₱5,000,000.00 |
| Family home deduction, value under the ₱10,000,000.00 cap | ₱8,000,000.00 |
| Total deductions | ₱13,000,000.00 |
| Net estate | Nil |
| Estate tax at 6% | ₱0.00 |
The same estate where the family home is worth ₱14,000,000.00 instead is different: the deduction caps at ₱10,000,000.00 and the excess above that is subject to estate tax.
Conditions on the claims deduction
Claims against the estate are deductible, but Section 86 attaches conditions that catch informal family lending:
- The debt instrument must have been duly notarized at the time the indebtedness was incurred.
- If the loan was contracted within 3 years before the death, the administrator or executor must submit a statement showing the disposition of the proceeds.
Claims, unpaid mortgages and indebtedness founded on a promise or agreement are deductible only to the extent they were contracted bona fide and for adequate and full consideration in money or money’s worth.
The deadlines
| Requirement | Period |
|---|---|
| Estate tax return | Within 1 year from the decedent’s death |
| Extension the Commissioner may grant, in meritorious cases | Not exceeding 30 days |
| Certified copy of the partition schedule and court order | Within 30 days after the order is promulgated |
The return may be filed electronically or manually, with any authorized agent bank, a Revenue District Office through a Revenue Collection Officer, or an authorized tax software provider.
What comes after the tax
Estate tax is the gate, not the whole process. Transferring the title afterwards brings in a separate set of charges, and the property continues to attract real property tax annually regardless of who holds it. If the property is later sold rather than kept, capital gains tax applies to that disposal on an entirely different basis.
Where this goes wrong
Assuming the amnesty is still open. It ran to 14 June 2025 on the evidence we can find. Check with BIR before relying on it.
Computing 6% on the gross estate. The rate applies to the net estate, after a ₱5,000,000.00 standard deduction and the family home allowance.
Treating the family home as fully exempt. The deduction caps at ₱10,000,000.00 and the excess is taxable.
Missing the one-year deadline. The return is due within 1 year of death, and the only extension available is a maximum of 30 days in meritorious cases.
Relying on an unnotarized family loan. The debt instrument had to be notarized when the debt was incurred for the claim to be deductible.
Frequently asked questions
- Is the estate tax amnesty still available?
- No. RA 11956, signed 5 August 2023, extended the period of availment until 14 June 2025, and that date has passed. Its own title states the extension runs to that date. We found no later extending statute on the Official Gazette. If you are relying on the amnesty, confirm with BIR before acting, because Congress has extended it twice before.
- How much is estate tax now?
- 6% of the net estate under Section 84, for every decedent whether resident or nonresident of the Philippines. It is charged on the net estate, meaning after the deductions in Section 86, not on the gross value of what was left behind.
- What can be deducted?
- For a citizen or resident: a standard deduction of ₱5,000,000.00, the family home up to ₱10,000,000.00 of current fair market value, claims against the estate, claims against insolvent persons, unpaid mortgages, and amounts received by heirs under RA 4917. A nonresident who is not a citizen gets a standard deduction of ₱500,000.00 instead.
- Does a small estate owe anything?
- Often nothing. The ₱5,000,000.00 standard deduction applies without needing to prove anything, and the family home adds up to a further ₱10,000,000.00. An estate consisting of a family home worth ₱8,000,000.00 and ₱2,000,000.00 of other assets has more deductions available than it has value.
- When is the return due?
- Within 1 year from the decedent's death, under Section 90(B). The Commissioner may grant a reasonable extension in meritorious cases, but that extension cannot exceed 30 days.
- What if the estate went through court?
- A certified copy of the schedule of partition and the court order approving it must be furnished to the Commissioner within 30 days after the order is promulgated. That is separate from, and additional to, the return itself.
- Where do I file it?
- Section 90(D) allows filing electronically or manually, with any authorized agent bank, a Revenue District Office through a Revenue Collection Officer, or an authorized tax software provider.
- Is the family home fully exempt?
- Only up to ₱10,000,000.00. Section 86(A)(7) allows a deduction equal to the current fair market value of the family home, but expressly provides that if that value exceeds ₱10,000,000.00, the excess shall be subject to estate tax.