Selling land, a house, or a condo in the Philippines triggers a fixed set of taxes: the 6% capital gains tax (CGT) under Section 24(D) of the Tax Code, the 1.5% documentary stamp tax (DST) on the deed, and a local transfer tax of 0.5% or 0.75% depending on where the property sits. This calculator applies the BIR’s rule — the tax base is the highest of your selling price, the BIR zonal value, or the assessor’s market value — and shows each tax plus the all-in total.
How the computation works
The Tax Code (Section 24(D), as amended by the TRAIN Law) imposes a final 6% tax on the presumed gain from selling real property classified as a capital asset. “Presumed” means your actual profit is irrelevant — the BIR taxes 6% of the tax base even if you sold at a loss. Per the guidelines to BIR Form 1706, that base is the highest of:
- the gross selling price in the deed of sale;
- the BIR zonal value for the property’s location; or
- the fair market value in the LGU tax declaration (the assessor’s market value).
On that same base: the documentary stamp tax is 1.5% (a tax on the deed itself), and the local transfer tax is up to 0.5% in provinces or up to 0.75% in cities and Metro Manila municipalities under the Local Government Code. The seller files and pays the CGT via BIR Form 1706 within 30 days from the sale; installments restart the clock from each payment.
What this calculator does not cover
- Registry of Deeds registration fees and any broker’s commission — budget for these separately.
- The principal-residence exemption (Section 24(D)(2)): if you fully reinvest the proceeds in a new principal residence within 18 months, the CGT may be waived — once every 10 years. Our real estate capital gains tax guide explains the escrow mechanics.
- Properties sold by corporations or real-estate dealers: those gains are not covered by the 6% regime — they form part of corporate taxable income.
- Unregistered or inherited property transfers, which follow estate-tax rather than CGT rules.
Want the full picture?
Our companion guide walks through the 30-day deadline, the principal-residence exemption, and how CGT differs from DST and transfer taxes — with worked examples.
Read the Real Estate CGT GuideFrequently Asked Questions
How is the tax base for the 6% capital gains tax determined?
The BIR computes the 6% capital gains tax on the highest among the gross selling price, the BIR zonal value, and the fair market value shown in the tax declaration (the LGU assessor’s market value), per the guidelines to BIR Form 1706. Enter all three values you know — the calculator uses the highest.
Does the 6% CGT apply even if I sold the property at a loss?
Yes. The 6% is a final tax on the presumed gain — no deductions for actual cost or improvements are allowed, so it applies even when the sale price is below your original purchase price.
Is the 1.5% documentary stamp tax part of the capital gains tax?
No. DST is a separate tax on the deed of sale itself, computed on the same tax base, and it is paid alongside the CGT and the local transfer tax before the BIR issues the Certificate Authorizing Registration.
Why does the local transfer tax change between 0.5% and 0.75%?
Under the Local Government Code, provinces may impose up to 0.5% of the tax base as transfer tax, while cities and municipalities in Metro Manila may impose up to 0.75%. Choose the option that matches where the property is located.
This calculator provides planning estimates based on the National Internal Revenue Code (as amended), BIR Form 1706 guidelines, and the Local Government Code. It is not tax advice — for filing, consult the BIR or a qualified tax professional.