Real Property Tax (Amilyar) in the Philippines: A Complete Guide

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This guide is general information, not legal, tax or financial advice. Rules, rates and fees change, so confirm the details with the relevant agency, your lender or a licensed professional before you decide.

Buy a home in the Philippines and you’ll hear the word amilyar almost immediately — the everyday term for real property tax (RPT), the annual local tax every landowner pays, for as long as they own the property. Unlike the one-time transfer taxes paid when you buy, amilyar is a recurring bill you’ll see every year you own the property. Here’s how it actually works.

Quick answer: to compute real property tax, multiply the property’s fair market value by the assessment level to get the assessed value, then multiply that by your local tax rate (generally up to 1% in a province and 2% in a city), plus the 1% Special Education Fund. A worked example is below.

What amilyar is, and who levies it

Real property tax is a local tax, collected by the province, city, or municipality where the property sits, not the national government. It’s authorized by the Local Government Code (RA 7160), which sets the framework, but each Local Government Unit (LGU) sets its own specific rate within that framework and its own local ordinances.

How it’s computed

The general formula is:

RPT = Assessed Value × Tax Rate

1. Fair Market Value (FMV) is set by the local Assessor, based on a schedule of values for the area — this is not the same as what you paid for the property.
2. Assessed Value is the FMV multiplied by an assessment level, a percentage that varies by property classification (residential, commercial, agricultural, industrial) and is set by local ordinance. Residential property generally carries a lower assessment level than commercial property.
3. Tax Rate is capped by the Local Government Code — generally up to 1% of assessed value in a province, and up to 2% in a city or within Metro Manila — though the exact rate is set locally within that cap.

On top of the basic RPT, many LGUs also levy a Special Education Fund (SEF) tax, commonly an additional 1% of assessed value, which goes toward local public schools.

A simplified example

Say a residential lot has an FMV of ₱1,000,000, a residential assessment level of 20%, and a municipal RPT rate of 1% plus the 1% SEF:

These figures are illustrative only — the actual assessment level, rate, and SEF vary by LGU. Ask your local Assessor’s Office for the current schedule of values and rates for a specific property. To run the numbers for your own property, use our free amilyar calculator.

When it’s due, and the early-payment discount

RPT is due annually, typically payable in full at the start of the year or in four quarterly installments. Most LGUs offer a discount for paying the full year’s tax early or in one lump sum, commonly in the range of 10–20%, though the exact percentage and deadline vary by LGU — check with your Treasurer’s Office, since it can meaningfully lower the bill for very little effort.

Discounts and exemptions worth asking about

Beyond the early-payment discount, some LGUs offer additional relief that a buyer or owner should ask about directly, since eligibility and availability vary by locality:

• Senior citizen discounts on RPT are offered by some LGUs for a property owned and occupied by a qualifying senior citizen, though the specifics (percentage, whether it applies to the whole tax or just a portion) are set locally.
• Socialized housing and idle-land distinctions can affect the assessment level applied, so a property’s exact classification (not just “residential” broadly) matters for the computation.
• Condominium common areas are typically assessed and billed through the condominium corporation rather than to individual unit owners directly for that portion — check how this is handled in a specific building’s dues structure.

None of these are guaranteed or uniform — always confirm what a specific LGU actually offers rather than assuming a discount applies. Ask the Assessor’s or Treasurer’s Office directly, or compare notes with a seller or agent who already owns nearby.

What happens if it goes unpaid

• Interest/penalties accrue on the unpaid amount, commonly around 2% per month, capped at a maximum (often 36 months’ worth) under the Local Government Code.
• Arrears follow the property, not just the person who owed them. A buyer inheriting unpaid RPT from a previous owner is a real risk — always confirm a tax clearance before buying. See our transfer taxes and fees guide.
• Long-term non-payment can lead to a tax delinquency sale, where the LGU can auction the property to recover the unpaid tax — a serious, if rarely reached, consequence.

Buyers: check this before you close

1. Ask for the current Real Property Tax Clearance from the Treasurer’s Office, confirming no arrears.
2. Confirm the tax declaration at the Assessor’s Office matches the seller’s name and the title.
3. After the purchase, transfer the tax declaration into your name so future RPT bills come to you, not the seller.
4. Ask the LGU about the current early-payment discount and due dates so you don’t miss it in your first year.

How amilyar compares to the one-time taxes you pay when buying

It’s easy to mix up amilyar with the taxes paid at the point of sale — they’re entirely separate. Capital gains tax, documentary stamp tax and the local transfer tax (covered in detail in our transfer taxes and fees guide) are one-time costs paid once, when ownership changes hands. Amilyar is a recurring annual cost that continues for as long as you own the property, computed completely differently (assessed value rather than the sale price). Budgeting for a purchase means accounting for both: the one-time closing costs up front, and the ongoing annual RPT bill for every year after.

Bottom line

Amilyar is a modest but permanent annual cost of owning property in the Philippines, computed from the assessed value (not the price you paid), varying by LGU, and worth paying early for the discount when it’s offered. It’s small compared to a one-time transfer tax bill, but it never stops, so it belongs in your long-term budget, not just your closing-day math. Factor it into your ongoing budget alongside association dues and insurance — our first-time homebuyer checklist covers the full list. Browse current listings across Pampanga, Tarlac and the rest of Central Luzon, and ask each seller whether real property tax is fully paid up to date.