Philippines Property Sale Tax Calculator (CGT, DST, Transfer Tax)
Capital gains tax, documentary stamp tax and transfer tax on a sale of land or a home.
Philippines · real property Capital gains tax, documentary stamp tax and transfer tax · Sources
Each charge
| Charge | Amount | Paid by |
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Cash in and out
Rules used and official sources
- BIR: National Internal Revenue Code (Tax Code), as amended
- BIR: Capital Gains Tax on real property
- BIR: Documentary Stamp Tax rates and procedures
- BIR: zonal values by revenue district
- Republic Act No. 7160 (Local Government Code), Sections 135 and 151: transfer tax
- Republic Act No. 12001 (Real Property Valuation and Assessment Reform Act)
- Civil Code of the Philippines, Article 1487: who pays the expenses of a sale
- Land Registration Authority: public consultation on restructuring the registration fees
- BIR: forms (1700, 1701, 1701A, 1701Q, 1706, 1800, 1801, 2000-OT)
Tax rules and rates change. This calculator follows the rules described on this page and may not cover every situation. Check the official source or a qualified tax professional before filing or invoicing.
About the Philippines Property Sale Tax Calculator (CGT, DST, Transfer Tax)
Selling land, a house or a condominium in the Philippines brings three taxes and a registration fee, and they are not all worked out on the price: the capital gains tax and the documentary stamp tax use the higher of the price, the BIR zonal value and the assessor’s fair market value. This calculator takes all three figures, finds the base the BIR will use, and works out the 6% capital gains tax, the 1.5% documentary stamp tax and the local transfer tax your province or city charges.
It then splits the charges the way deeds usually split them — the seller pays the capital gains tax, the buyer the rest — and shows what the seller actually receives and the cash the buyer needs. You can move every charge to one side if your deed says so, and switch on the exemption for a principal residence whose proceeds are being reinvested.
How to use it
- Enter the selling price in the deed of sale.
- Enter the BIR zonal value and the assessor’s fair market value for the property. The calculator uses whichever of the three figures is highest, because that is what the Tax Code requires.
- Choose whether the property is in a province or a city and enter the transfer tax rate from the local revenue code — the cap is 0.5% in a province and 0.75% in a city.
- Add the Register of Deeds registration fee from the Registry’s own schedule, and any other costs such as notarial fees, a broker’s commission or unpaid real property tax.
- If the home is the seller’s principal residence and the whole proceeds will buy or build a new one within 18 months, tick the exemption.
- Read each charge, who pays it, the seller’s net proceeds and the buyer’s outlay. Copy the summary or download the charges as a CSV file.
Examples
Price ₱3,000,000 · zonal ₱2,500,000 · assessor ₱1,800,000 · transfer tax 0.75%
CGT ₱180,000 · DST ₱45,000 · transfer tax ₱22,500 · ₱247,500 in all (8.25% of the price)
By custom the seller pays ₱180,000 and the buyer ₱67,500, so the seller nets ₱2,820,000.
Price ₱2,000,000 · zonal ₱2,600,000
Every tax is worked out on ₱2,600,000: CGT ₱156,000, DST ₱39,000
Pricing a deed below the zonal value does not lower the tax. The gap is not taxed again as a gift: Section 100 of the Tax Code leaves real property taxed under Section 24(D) out of its gift rule.
Price ₱2,500,500
DST ₱37,515 — 2,501 units of ₱1,000 at ₱15, because a fraction counts as a whole ₱1,000
No capital gains tax; the documentary stamp tax and transfer tax still apply
The buyer still withholds the 6% and it sits in escrow until the BIR certifies the proceeds were used for the new home.
Common uses
- Work out what you will actually receive before you accept an offer on a house.
- Budget the cash a purchase needs on top of the price.
- Check an agent’s or broker’s estimate of closing costs line by line.
- See the effect of a zonal value that is higher than the price you agreed.
- Compare splitting the charges differently before the deed is drafted.
Capital gains tax: 6% of the higher figure
A sale of real property held as a capital asset by an individual carries a final capital gains tax of 6% of the gross selling price or the current fair market value, whichever is higher (Section 24(D)(1) of the Tax Code, BIR: Capital Gains Tax). It is a tax on the presumed gain, so it is due even if you sold at a loss.
The fair market value is the higher of the BIR's schedule of market values (the zonal value) and the schedule of the provincial or city assessor. RA 12001 moved valuation to one approved Schedule of Market Values and provides that, until an updated schedule is in place, the Commissioner uses the existing schedule, the zonal value or the price in the documents, whichever is higher. The BIR publishes zonal values by revenue district; the assessor's figure is on the latest tax declaration.
The return is BIR Form 1706 and it is due within 30 days of the sale. Property used in a trade or business is an ordinary asset instead: the gain goes into the annual income tax return and the buyer withholds creditable withholding tax, so this calculator does not cover it.
Documentary stamp tax: ₱15 per ₱1,000
A deed of sale, conveyance or donation of real property carries a documentary stamp tax of ₱15 for the first ₱1,000 of the consideration or fair market value, whichever is higher, and ₱15 for each further ₱1,000 or fraction (Section 196, BIR: Documentary Stamp Tax).
That works out at 1.5% on a base that is a whole number of thousands, and a little more otherwise: on ₱2,500,500 it is 2,501 units, or ₱37,515. The return (BIR Form 2000-OT) is filed and the tax paid within ten days after the close of the month in which the deed was signed.
Local transfer tax and the registration fee
The province may charge a tax on the transfer of real property ownership of up to 0.5% of the total consideration or the fair market value, whichever is higher, and it falls due within 60 days of the deed (Section 135, Local Government Code). A city may levy the same tax at a rate up to half as much again — 0.75% — under Section 151. The actual rate is in the local revenue code, so enter the one your treasurer charges.
The Register of Deeds then charges a registration fee for issuing the new transfer certificate of title. The fee follows the Land Registration Authority's schedule, which rises with the value of the property and which the LRA has put out for public consultation on a restructuring, so this calculator does not build it in: ask the Registry of Deeds for the land and enter the amount. The Registry will not transfer the title without the BIR's electronic Certificate Authorizing Registration, which is issued once the taxes are paid.
Who pays what
In most Philippine deeds the seller pays the capital gains tax and the buyer pays the documentary stamp tax, the transfer tax and the registration fee. That is custom, not law. The Civil Code provides that the expenses for the execution and registration of the sale are the seller's unless there is a stipulation to the contrary (Article 1487), the Local Government Code makes paying the transfer tax the seller's duty (Section 135(b)), and the Tax Code makes the party who is not exempt directly liable for the documentary stamp tax where one party is exempt.
So the deed decides how the cost is shared between you. Use the “who pays” choice to model your own agreement before you sign, and remember that whoever the deed names, the BIR and the treasurer collect from the person the law makes liable.
Deadlines in one place
Capital gains tax: BIR Form 1706 within 30 days following the sale or disposition.
Documentary stamp tax: BIR Form 2000-OT, filed and paid within ten days after the close of the month the deed was made, signed, accepted or transferred.
Local transfer tax: within 60 days of the date of the deed, to the provincial or city treasurer; the notary has to send the treasurer a copy of the deed within 30 days of notarisation.
After the taxes: the BIR issues the electronic Certificate Authorizing Registration, the treasurer issues a tax clearance, and the Register of Deeds issues the new title. Missing a deadline adds surcharge, interest and compromise penalties to the tax.
Limitations
- For real property held as a capital asset by an individual. Property used in a trade or business is an ordinary asset: the gain is taxed in the annual return and creditable withholding tax applies instead.
- Shares of stock, personal property and transfers by inheritance or donation are not covered. For an estate or a gift, use the estate and donor’s tax calculator.
- Sales to the government, socialised housing, CARP transfers, tax-free exchanges for corporate control and other exemptions are not worked out.
- The Register of Deeds registration fee is a figure you enter: the Land Registration Authority is consulting on restructuring its schedule of fees, so the calculator does not build in a table that may change.
- Zonal values and assessor’s values are not built in — the schedules are per revenue district and per local government, and they change.
- Surcharges, interest and compromise penalties on a late payment are not included.
- An estimate — not tax or legal advice. Have the BIR’s ONETT computation sheet or a lawyer confirm before you sign or pay.
Privacy
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Frequently asked questions
Why is the tax worked out on the zonal value and not the price I agreed?
Because the Tax Code says the base is the gross selling price or the fair market value, whichever is higher, and the fair market value is the higher of the BIR’s schedule and the assessor’s schedule. A deed priced below those values does not lower the capital gains tax or the documentary stamp tax. The gap is not taxed a second time as a gift either: Section 100 of the Tax Code leaves real property taxed under Section 24(D) out of its rule on transfers for less than full value.
Who pays the capital gains tax, the seller or the buyer?
By custom the seller, and by law the seller is the taxpayer. But the parties can agree otherwise in the deed, and buyers sometimes shoulder it as part of the price. The Civil Code puts the expenses of the sale on the seller unless the deed says something else.
Is the 6% charged on my profit?
No. It is a final tax on the presumed gain, charged on the full base — the higher of the price and the fair market value — not on the difference between what you paid and what you sold for. You pay it even on a sale at a loss.
How does the exemption for a principal residence work?
A natural person who sells their principal residence pays no capital gains tax if the whole proceeds go into buying or building a new principal residence within 18 calendar months, the BIR is notified within 30 days of the sale, and the exemption has not been used in the past ten years. The historical cost carries over to the new home, the 6% is held in escrow meanwhile, and any part of the proceeds not used is taxed.
What is the ONETT computation sheet?
It is the BIR’s own computation of the taxes on a one-time transaction, prepared by the Revenue District Office with jurisdiction over the property. Taking the computation sheet before you pay is the safest way to confirm the figures, and the electronic Certificate Authorizing Registration that follows is what the Register of Deeds needs to transfer the title.
Does the documentary stamp tax really come to more than 1.5%?
Slightly, whenever the base is not a whole number of thousands, because the Code charges ₱15 for each ₱1,000 “or fraction thereof”. On a base of ₱2,500,500 that is 2,501 units — ₱37,515 instead of ₱37,507.50.