Cedula: ₱5.00 Basic, and the Law Behind It
LGU · identification
Quick answer
A cedula is the receipt for the community tax. RA 7160 sets it at ₱5.00 basic plus ₱1.00 for every ₱1,000.00 of income, capped at ₱5,000.00. Corporations pay ₱500.00 plus up to ₱10,000.00. It falls due on the last day of February.
Last verified
Where these figures come from
About these figures: the numbers below come from LGU's official published sources: Official Gazette | Republic Act No. 7160, Local Government Code of 1991 (https://www.officialgazette.gov.ph/1991/10/10/republic-act-no-7160/, retrieved 2026-09-01). Agencies change fees and rates without notice, so confirm with LGU before you rely on them. Last verified: 2026-09-01.
What a cedula actually is
The cedula is not a fee for a document. It is the receipt for a tax, and that distinction explains almost everything confusing about it.
Section 162 of RA 7160 puts it plainly: a community tax certificate shall be issued to every person or corporation upon payment of the community tax. The paper is the proof; the tax is the thing.
That is why the price is different for different people, why it is due in February, and why nobody can quote you a single national figure.
What an individual pays
| Component | Rate under Section 157 |
|---|---|
| Basic | ₱5.00 |
| Additional | ₱1.00 for every ₱1,000.00 of income |
| Ceiling on the additional tax | ₱5,000.00 |
Income here means income from any source: business, exercise of profession, or property. The law is explicit that it applies “regardless of whether from business, exercise of profession or from property”.
Worked through at a few income levels:
| Annual income | Basic | Additional | Statutory total |
|---|---|---|---|
| ₱120,000.00 | ₱5.00 | ₱120.00 | ₱125.00 |
| ₱300,000.00 | ₱5.00 | ₱300.00 | ₱305.00 |
| ₱600,000.00 | ₱5.00 | ₱600.00 | ₱605.00 |
| ₱1,000,000.00 | ₱5.00 | ₱1,000.00 | ₱1,005.00 |
| ₱5,000,000.00 or more | ₱5.00 | ₱5,000.00 capped | ₱5,005.00 |
These are the figures the statute sets. Your city or municipality collects the tax and may add its own charges, so the amount on the counter can differ from the amount in the law.
For a married couple, the additional tax is based on the total property owned by them and the total gross receipts or earnings derived by them, rather than on each spouse separately.
Who is liable
Section 157 catches you if any of these is true, not all of them:
- You are eighteen (18) years of age or over and have been regularly employed on a wage or salary basis for at least thirty (30) consecutive working days during any calendar year.
- You are engaged in business or occupation.
- You own real property with an aggregate assessed value of ₱1,000.00 or more.
- You are required by law to file an income tax return.
That last one sweeps in a lot of people who would not think of themselves as taxpayers of the local government. Whether you must file is a BIR question, covered in our guide to ITR filing.
What a corporation pays
| Component | Rate under Section 158 |
|---|---|
| Basic | ₱500.00 |
| Additional, real property | ₱2.00 for every ₱5,000.00 of assessed value |
| Additional, gross receipts | ₱2.00 for every ₱5,000.00 of gross receipts or earnings |
| Ceiling on the additional tax | ₱10,000.00 |
The real property figure uses the valuation used for real property tax, as found in the assessment rolls of the city or municipality where the property sits.
One detail that catches holding structures: dividends received by a corporation from another corporation are treated as part of the gross receipts or earnings of the receiving corporation for the purpose of the additional tax.
The dates, and the 24% that follows them
| Rule | What Section 161 says |
|---|---|
| Accrual | The first day of January each year |
| Deadline | Not later than the last day of February |
| Late payment | Interest of 24% per annum from the due date until paid |
| Turning 18 on or before the last day of March | Liable, with the concession the law provides for that year |
| Corporation organised on or before the last day of March | 20 days to pay without becoming delinquent |
| Corporation organised on or after the first day of July | Not subject to the community tax that year |
The 24% per annum is set by statute. It is not a local penalty and not something a treasurer’s office invents.
Who is exempt
Section 159 is one of the shortest provisions in the article, and it exempts only two groups:
- Diplomatic and consular representatives.
- Transient visitors whose stay in the Philippines does not exceed three (3) months.
There is no exemption for students, senior citizens, persons with disability or the unemployed in the community tax article itself. If you are not liable under Section 157 in the first place, you do not need an exemption, and you can still get a certificate for ₱1.00 under Section 162.
Where you pay
Section 160 fixes the place: the residence of the individual, or the place where the principal office of a juridical entity is located.
This matters more than it looks. A cedula bought somewhere convenient rather than where you live is not what the law contemplates, and offices that check the address on it will notice.
What it is used for
The cedula is asked for constantly, which is why it is worth understanding what it is. It turns up as a supporting document for barangay transactions, notarisation, and local permits. Where it fits in the sequence of starting a business is covered in barangay clearance, and if you are collecting identity documents more broadly, see which IDs are actually accepted.
Where this goes wrong
Expecting a fixed price. The law gives a formula tied to your income, not a figure. Anyone quoting a single national price for a cedula is describing their own counter, not the statute.
Missing the end of February. The deadline is the last day of February and the consequence is 24% per annum.
Paying it in the wrong place. Section 160 ties payment to your residence or your principal office.
Assuming income means salary. The additional tax counts income from business, profession or property. Rental income and professional fees count.
Frequently asked questions
- How much is a cedula?
- The law sets the formula, not a single price. RA 7160 Section 157 imposes ₱5.00 plus ₱1.00 for every ₱1,000.00 of income from business, profession or property, and caps the whole additional tax at ₱5,000.00. Someone earning ₱300,000.00 a year is therefore looking at ₱5.00 plus ₱300.00, so ₱305.00 before any local surcharge.
- Who has to pay it?
- Section 157 covers every inhabitant of the Philippines aged eighteen (18) or over who has been regularly employed on a wage or salary basis for at least thirty (30) consecutive working days in a calendar year, or who is engaged in business or occupation, or who owns real property with an aggregate assessed value of ₱1,000.00 or more, or who is required by law to file an income tax return.
- When is it due?
- Section 161 says the community tax accrues on the first day of January each year and shall be paid not later than the last day of February. That is why cedula queues form in January and February rather than at the start of the fiscal year.
- What happens if I pay late?
- Interest of twenty-four percent (24%) per annum is added to the unpaid amount, running from the due date until it is paid. That is a statutory rate, not a local penalty a treasurer can waive.
- What do companies pay?
- Section 158 sets ₱500.00 as the basic community tax for every corporation, domestic or resident foreign, doing business in the Philippines. On top of that is an additional tax capped at ₱10,000.00, computed at ₱2.00 for every ₱5,000.00 of real property owned and ₱2.00 for every ₱5,000.00 of gross receipts or earnings.
- Is anyone exempt?
- Section 159 exempts two groups only: diplomatic and consular representatives, and transient visitors whose stay in the Philippines does not exceed three (3) months.
- Where do I pay it?
- Section 160 requires payment in the place of residence of the individual, or in the place where the principal office of a juridical entity is located. You cannot simply pay it wherever the queue is shortest.
- Can I get a cedula if I do not owe the tax?
- Yes. Section 162 provides that a community tax certificate may also be issued to any person or corporation not subject to the community tax upon payment of ₱1.00.