Amilyar: 1% or 2%, Plus 1% for Schools
LGU · taxes
Quick answer
Real property tax is up to 1% of assessed value in provinces and 2% in cities or Metro Manila municipalities, plus 1% for the Special Education Fund. Assessed value is fair market value times an assessment level, which is 20% for residential land. Late payment adds 2% a month.
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.
Two numbers make the bill
Real property tax, amilyar in everyday Tagalog, is calculated in two steps that people routinely collapse into one.
Step one: assessed value. Fair market value multiplied by an assessment level set by local ordinance.
Step two: the tax. A percentage of that assessed value, not of the market value.
Missing the first step is why estimates come out far too high. Residential land is assessed at up to 20% of fair market value, so four fifths of the value never enters the calculation.
The rates
| Levy | Where | Maximum rate |
|---|---|---|
| Basic real property tax | Province | 1% of assessed value |
| Basic real property tax | City, or municipality within Metro Manila | 2% of assessed value |
| Special Education Fund | Province, city, or Metro Manila municipality | 1% of assessed value |
| Idle land tax | Province, city, or Metro Manila municipality | 5% of assessed value |
Every figure is a ceiling. RA 7160 says “not exceeding”, and the sanggunian fixes the actual rate by ordinance. What you pay is set locally within these limits.
The Special Education Fund levy is additional to the basic tax and its proceeds accrue exclusively to the SEF. So the realistic combined maximum is 2% in a province and 3% in a city.
Assessment levels on land
| Class | Maximum assessment level |
|---|---|
| Residential | 20% |
| Timberland | 20% |
| Agricultural | 40% |
| Commercial | 50% |
| Industrial | 50% |
| Mineral | 50% |
Assessment levels on buildings
These are graduated by fair market value, and they climb steeply.
Residential buildings:
| Fair market value | Assessment level |
|---|---|
| Not over ₱175,000.00 | 0% |
| Over ₱175,000.00 to ₱300,000.00 | 10% |
| Over ₱300,000.00 to ₱500,000.00 | 20% |
| Over ₱500,000.00 to ₱750,000.00 | 25% |
| Over ₱750,000.00 to ₱1,000,000.00 | 30% |
| Over ₱1,000,000.00 to ₱2,000,000.00 | 35% |
| Over ₱2,000,000.00 to ₱5,000,000.00 | 40% |
| Over ₱5,000,000.00 to ₱10,000,000.00 | 50% |
| Over ₱10,000,000.00 | 60% |
A modest house is genuinely assessed at 0%. The first ₱175,000.00 of residential building value carries no assessment level at all.
Commercial and industrial buildings:
| Fair market value | Assessment level |
|---|---|
| Not over ₱300,000.00 | 30% |
| Over ₱300,000.00 to ₱500,000.00 | 35% |
| Over ₱500,000.00 to ₱750,000.00 | 40% |
| Over ₱750,000.00 to ₱1,000,000.00 | 50% |
| Over ₱1,000,000.00 to ₱2,000,000.00 | 60% |
| Over ₱2,000,000.00 to ₱5,000,000.00 | 70% |
| Over ₱5,000,000.00 to ₱10,000,000.00 | 75% |
| Over ₱10,000,000.00 | 80% |
Agricultural buildings run from 25% up to ₱300,000.00, through 30%, 35%, 40% and 45%, reaching 50% above ₱2,000,000.00. Timberland buildings start at 45% and reach 70% above ₱2,000,000.00.
Machinery is assessed at 40% agricultural, 50% residential, and 80% for both commercial and industrial.
A worked example
Residential land with a fair market value of ₱2,000,000.00, in a city:
| Step | Figure |
|---|---|
| Fair market value | ₱2,000,000.00 |
| Assessment level, residential land | 20% |
| Assessed value | ₱400,000.00 |
| Basic tax at the 2% city maximum | ₱8,000.00 |
| Special Education Fund at 1% | ₱4,000.00 |
| Annual total at the statutory maximum | ₱12,000.00 |
The same land in a province, where the basic rate caps at 1%, would be ₱4,000.00 plus ₱4,000.00, so ₱8,000.00.
Deadlines, and the 20% discount
The basic tax and the SEF tax may be paid without interest in four equal installments:
| Installment | Due on or before |
|---|---|
| First | 31 March |
| Second | 30 June |
| Third | 30 September |
| Fourth | 31 December |
Pay in advance on the prescribed schedule and the sanggunian may grant a discount not exceeding 20% of the annual tax due. Again a ceiling: some LGUs grant the full 20%, others less.
Late payment, and the 36-month cap
Interest runs at 2% per month on the unpaid amount until the delinquent tax is fully paid.
There is a limit that surprises people on both sides. In no case shall the total interest exceed 36 months, so the maximum interest is 72% of the tax due. A property left unpaid for ten years accrues the same interest as one left unpaid for three, though the tax itself keeps accumulating annually and the LGU has separate collection remedies.
Disputing an assessment
Section 252 sets an order of operations that cannot be reversed:
- Pay the tax first. No protest is entertained otherwise.
- The receipt is annotated with the words “paid under protest”.
- The written protest is filed within 30 days from payment.
Paying under protest is not an admission. Refusing to pay while you argue simply means the protest is never heard.
What is exempt
Section 234 lists exemptions, including real property owned by the Republic of the Philippines or its political subdivisions, except where the beneficial use has been granted, for consideration or otherwise, to a taxable person. That exception matters: government land leased to a business becomes taxable in practice.
Also exempt are charitable institutions, churches, parsonages and convents appurtenant to them, mosques, and non-profit or religious cemeteries, along with the lands, buildings and improvements actually and directly used for those purposes.
Related local charges
Real property tax is one of several levies the same law authorises. The community tax, and the certificate it produces, is in our guide to the cedula, and the barangay clearance rules that gate business permits are in barangay clearance.
Where this goes wrong
Computing the tax on market value. The base is assessed value, which for residential land is up to 20% of market value.
Treating the statutory rate as your rate. Every figure here is a maximum set by RA 7160. Your ordinance sets the real one.
Missing the quarterly option. Four installments are available without interest, so a large annual bill does not have to be paid at once.
Arguing before paying. The protest is only heard after payment, and only within 30 days of it.
Frequently asked questions
- How much is real property tax?
- Up to 1% of assessed value if the property is in a province, and up to 2% if it is in a city or a municipality within Metro Manila. On top of that sits a further 1% for the Special Education Fund, so the practical ceiling is 2% in a province and 3% in a city. These are maximums; your local ordinance sets the actual rate.
- What is assessed value, and how is it different from market value?
- Assessed value is fair market value multiplied by an assessment level. For residential land the assessment level is up to 20%, so land with a fair market value of ₱2,000,000.00 has an assessed value of ₱400,000.00, and the tax is charged on the ₱400,000.00 rather than the ₱2,000,000.00.
- When is amilyar due?
- You may pay the basic tax and the SEF tax in four equal installments without interest, due on or before 31 March, 30 June, 30 September and 31 December. Paying the whole year in advance can earn a discount.
- Is there a discount for paying early?
- Yes. Section 251 allows the sanggunian to grant a discount not exceeding 20% of the annual tax due where the basic tax and the SEF tax are paid in advance on the prescribed schedule. It is a ceiling, not a guarantee, so the actual discount is set locally.
- What happens if I pay late?
- Interest of 2% per month on the unpaid amount, running until the delinquent tax is fully paid. There is a cap: in no case shall the total interest exceed 36 months, which works out to a maximum of 72% on top of the tax itself.
- What are the assessment levels for buildings?
- They rise with value. A residential building with a fair market value of ₱175,000.00 or less has an assessment level of 0%. It steps up through 10%, 20%, 25%, 30%, 35%, 40% and 50%, reaching 60% above ₱10,000,000.00. Commercial and industrial buildings start higher at 30% and reach 80%.
- Can I dispute my assessment?
- Yes, but you pay first. Section 252 states that no protest shall be entertained unless the taxpayer first pays the tax, the receipt must be annotated with the words paid under protest, and the written protest must be filed within 30 days from payment.
- Is any property exempt?
- Section 234 exempts real property owned by the Republic or its political subdivisions, except where beneficial use has been granted to a taxable person. It also exempts charitable institutions, churches, parsonages and convents appurtenant to them, mosques, and non-profit or religious cemeteries, together with lands, buildings and improvements actually and directly used for those purposes.