13/07/2026
In the Philippine real estate framework, a single property holds entirely different values depending on the specific financial, legal, or taxation purpose. Mistaking one valuation for another can lead to critical miscalculations in transaction closing costs or local tax compliance.
📌 ZONAL VALUE
Zonal Value is the property valuation prescribed by the Bureau of Internal Revenue (BIR) for specific locations or zones. It serves as one of the benchmarks in determining the tax base for certain transfer taxes. For Capital Gains Tax (CGT) and Documentary Stamp Tax (DST), the BIR generally uses the higher of the selling price or the property's fair market value, with the fair market value being the higher between the BIR Zonal Value and the Fair Market Value determined by the local assessor.
📌 MARKET VALUE
Market Value refers to the estimated price at which a property would change hands between a willing buyer and a willing seller in an open and competitive market. It is influenced by supply and demand, infrastructure developments, neighborhood growth, and comparable sales. Unlike government valuations, market value changes according to prevailing economic conditions.
📌 ASSESSED VALUE
Assessed Value is the value used by the local government unit to compute annual Real Property Tax (RPT or amilyar). It is determined by multiplying the property's Fair Market Value, as established by the local assessor, by the applicable assessment level prescribed under the Local Government Code. This value is generally lower than the property's market value and is used primarily for local property taxation.
