06/12/2025
Real estate transactions can be confusing with estate tax, donor’s tax, amilyar, transfer fees, and capital gains tax.
Here’s a simple and easy-to-understand guide so you won’t get confused, whether you are selling, donating, or inheriting a property.
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𝗘𝗦𝗧𝗔𝗧𝗘 𝗧𝗔𝗫 𝘃𝘀. 𝗗𝗢𝗡𝗢𝗥’𝗦 𝗧𝗔𝗫 𝗶𝗻 𝘁𝗵𝗲 𝗣𝗵𝗶𝗹𝗶𝗽𝗽𝗶𝗻𝗲𝘀
(And how they differ from Amilyar, Transfer Fees, and Capital Gains Tax)
Let’s make this simple and easy to understand ⬇️⬇️⬇️
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𝗪𝗛𝗔𝗧 𝗜𝗦 𝗘𝗦𝗧𝗔𝗧𝗘 𝗧𝗔𝗫?
Estate tax is a tax you pay when a person dies and their properties are transferred to the heirs.
It is based on the total net estate value, not per property.
👉 Paid to: 𝗕𝗜𝗥 (Bureau of Internal Revenue)
👉 Required before you can transfer the title at 𝗥𝗢𝗗.
𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗥𝗮𝘁𝗲: 𝟲% of the net estate
🔹 Example:
A father leaves a house and lot worth ₱6,500,000.
Estate Tax = 6% of ₱6,500,000 = ₱390,000
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𝗪𝗛𝗔𝗧 𝗜𝗦 𝗗𝗢𝗡𝗢𝗥’𝗦 𝗧𝗔𝗫?
Donor’s tax is paid when you give a property while you’re still alive.
This applies whether you donate to a child, relative, or friend.
👉 Paid to: 𝗕𝗜𝗥
𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗥𝗮𝘁𝗲: 𝟲% on total donations above ₱250,000 per year
🔹 Example:
A mother donates a condo worth ₱5,500,000 to her daughter.
Taxable amount = ₱5,500,000 − ₱250,000 = ₱5,250,000
Donor’s Tax = 6% of ₱5,250,000 = ₱315,000
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𝗢𝗟𝗗 𝘃𝘀. 𝗡𝗘𝗪 𝗗𝗢𝗡𝗢𝗥’𝗦 𝗧𝗔𝗫 𝗥𝗔𝗧𝗘𝗦 (𝗘𝗮𝘀𝘆 𝗲𝘅𝗽𝗹𝗮𝗶𝗻𝗲𝗱)
Before 2018, donor’s tax had different rates for relatives and non-relatives.
Some were lower than 6%, others reached up to 15%.
Now, it is simple and uniform:
👉 𝗝𝘂𝘀𝘁 6% for all donors, regardless of relationship.
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𝗔𝗠𝗜𝗟𝗬𝗔𝗥 (𝗔𝗻𝗻𝘂𝗮𝗹 𝗥𝗲𝗮𝗹 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗧𝗮𝘅)
Amilyar is the annual tax you pay for owning a property.
This is different from Estate Tax and Donor’s Tax.
👉 Paid to: 𝗟𝗚𝗨 / City or Municipal Treasurer’s Office
Typical rate: 1% to 2% of the assessed value
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𝗧𝗥𝗔𝗡𝗦𝗙𝗘𝗥 𝗙𝗘𝗘𝗦 (𝗥𝗲𝗴𝗶𝘀𝘁𝗿𝘆 𝗼𝗳 𝗗𝗲𝗲𝗱𝘀)
These are the fees to change the title into the new owner’s name.
These are not Estate Tax or Donor’s Tax.
👉 Paid to:
• 𝗥𝗢𝗗 (Registry of Deeds) – registration fee
• 𝗕𝗥𝗚𝗬 / City Treasurer – documentary stamp & local transfer fee (varies)
Usual ROD Transfer Fee rate: 0.5% to 0.75% of the property price
🔹 Example:
Property value: ₱6,000,000
Transfer Fee (0.5%) = ₱30,000
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𝗖𝗔𝗣𝗜𝗧𝗔𝗟 𝗚𝗔𝗜𝗡𝗦 𝗧𝗔𝗫 (𝗖𝗚𝗧)
Capital Gains Tax is a tax you pay when you SELL a property.
It is charged on the profit or presumed gain from selling a property, even if you didn’t actually earn profit.
The tax is based on the selling price or zonal value, whichever is higher.
👉 Paid to: 𝗕𝗜𝗥
Rate: 6% of the selling price or zonal value, whichever is higher.
🔹 Example:
Selling price: ₱6,800,000
Zonal value: ₱7,200,000
CGT = 6% of ₱7,200,000 = ₱432,000
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𝗦𝗨𝗣𝗘𝗥 𝗘𝗔𝗦𝗬 𝗦𝗨𝗠𝗠𝗔𝗥𝗬
• 𝗘𝘀𝘁𝗮𝘁𝗲 𝗧𝗮𝘅 (BIR) = Transfer when someone dies
• 𝗗𝗼𝗻𝗼𝗿’𝘀 𝗧𝗮𝘅 (BIR) = Transfer while alive
• 𝗔𝗺𝗶𝗹𝘆𝗮𝗿 (City Hall / LGU) = Annual tax for owning property
• 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿 𝗙𝗲𝗲𝘀 (ROD + LGU) = Fees to transfer the title
• 𝗖𝗚𝗧 (BIR) = Tax when a property is sold
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Understanding the different taxes and fees makes real estate transactions much easier.
Whether you are buying, selling, donating, or inheriting, knowing these can help you plan better and avoid surprises.
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𝗗𝗜𝗦𝗖𝗟𝗔𝗜𝗠𝗘𝗥:
This guide is for general information only and should not be taken as legal or tax advice. Actual taxes and fees may vary depending on specific circumstances. For accurate assessment, please consult the BIR, your LGU, or a licensed tax professional.
