08/05/2026
🏡 𝗞𝗡𝗢𝗪 𝗧𝗛𝗘 𝗗𝗜𝗙𝗙𝗘𝗥𝗘𝗡𝗖𝗘!
Many people get confused between 𝗭𝗼𝗻𝗮𝗹 𝗩𝗮𝗹𝘂𝗲, 𝗔𝘀𝘀𝗲𝘀𝘀𝗲𝗱 𝗩𝗮𝗹𝘂𝗲, and 𝗠𝗮𝗿𝗸𝗲𝘁 𝗩𝗮𝗹𝘂𝗲 in real estate.
Here’s a simple guide 👇
1. Zonal Value
The Zonal Value is the value set by the Bureau of Internal Revenue (BIR) for taxation purposes.
Purpose:
Used as basis for:
Capital Gains Tax
Documentary Stamp Tax
Donor’s Tax
Estate Tax
🚨Important:
BIR usually uses the higher value between:
Selling Price
Zonal Value
Fair Market Value (Assessor’s Value)
Example:
If:
Selling Price = ₱2M
Zonal Value = ₱2.5M
Taxes may be computed based on ₱2.5M because it is higher.
2. Assessed Value
The Assessed Value is the value determined by the City or Municipal Assessor’s Office.
Purpose:
Used for:
Real Property Tax (Amilyar)
Formula:
Assessed Value = Fair Market Value × Assessment Level
Example:
Fair Market Value from Assessor = ₱1,000,000
Assessment Level = 20%
➡️ Assessed Value = ₱200,000
This becomes the basis for annual property tax.
3. Market Value
The Market Value is the actual estimated selling price in the current market.
Purpose:
Used by:
Buyers and sellers
Brokers
Banks
Appraisers
Influenced by:
Location
Demand
Developments nearby
Property condition
Accessibility
Example:
A property may have:
Zonal Value = ₱15,000/sqm
Assessed Value = ₱8,000/sqm
Actual Market Value = ₱30,000/sqm
Because buyers are willing to pay more in that area.
Simple Real Estate Explanation
Think of it this way:
Market Value = “How much buyers are willing to pay.”
Zonal Value = “Minimum value BIR may recognize for taxes.”
Assessed Value = “Value used by City Hall for amilyar.”
