Giving money, land, or shares to your children while you’re alive triggers the donor’s tax — since the TRAIN Law, a flat 6% of everything you give above ₱250,000 in a calendar year (Section 99, NIRC). The threshold is annual and cumulative: every gift you make in the same year stacks into one total. Enter that total to see the tax.
How the computation works
Section 99 of the Tax Code (as amended by TRAIN) taxes the transfer by gift during the calendar year:
- 6% of the total gifts above ₱250,000 for the year — one flat rate, replacing the old 2–15% schedule.
- Aggregation: gifts to all recipients within the year are combined. A parent giving ₱400,000 to one child and ₱100,000 to another has ₱250,000 taxable — not ₱150,000 + ₱0.
- 30% for strangers: gifts to anyone outside the fourth civil degree of consanguinity (friends, unmarried partners) are taxed at a flat 30% with no ₱250,000 exemption (Section 99(B)).
- Filing: BIR Form 1800 within 30 days from each donation; the donor pays.
Worked example: ₱1,000,000 total gifts in one year → 6% × (1,000,000 − 250,000) = ₱45,000. Below ₱250,000 in total? No donor’s tax at all — though a declaration of the exempt gift may still be prudent for large properties.
What this calculator does not cover
- Stranger donations (flat 30%, no exemption) — this tool computes the 6% relative-gift case; see the note in the results.
- Gifts with encumbrances — a property given subject to an assumed mortgage is taxed on the net value (value minus the assumed obligation).
- Void or special donations — e.g., donations between spouses during marriage are generally prohibited by the Family Code.
- Non-resident donors and foreign-situs property, which follow different rules.
Want the full picture?
Our companion guide explains what counts as a gift, the aggregation trap, the 30% stranger rate, deductibility, and gift-vs-inheritance planning — with worked examples.
Read the Donor’s Tax GuideGifting vs. inheriting
Donor’s tax (6% over ₱250k/year) and estate tax (6% over the net estate at death) share a rate but differ in timing and thresholds. Our estate tax calculator shows the inheritance side.
Open the Estate Tax CalculatorFrequently Asked Questions
How much is donor’s tax in the Philippines?
A flat 6% of the total gifts made by one donor within a calendar year that exceed ₱250,000, under the TRAIN Law (Section 99). The old graduated rates of 2% to 15% no longer apply.
Is the ₱250,000 exemption per gift?
No. All gifts made by the same donor within the calendar year are added together, and only the first ₱250,000 in total is exempt. Two ₱150,000 gifts in one year leave ₱50,000 taxable; the second gift is not another exempt ₱250,000.
When and how is donor’s tax filed?
The donor files BIR Form 1800 within 30 days from the date of each donation and pays the tax due at that time. The donor, not the recipient, pays the tax.
What about gifts to friends or strangers?
Donations to anyone who is not a relative within the fourth civil degree of consanguinity — including friends and unmarried partners — are taxed at a flat 30% of the gift’s value, and the ₱250,000 exemption does not apply.
Does the exemption reset every year?
Yes. The ₱250,000 exemption applies per calendar year per donor, so gifting programs spread across several years shield ₱250,000 each year — the same annual-aggregation logic applies within each year.
Is the gift tax-deductible for the giver?
No. Personal gifts to individuals are never deductible from your income tax — the donor’s tax is a separate transfer tax, and the amount given does not reduce your taxable income. The exception is philanthropy: donations to the government or to BIR-accredited charitable, religious, educational, or cultural institutions may be exempt from donor’s tax and deductible from gross income, generally capped at 10% of taxable income for individuals and 5% for corporations.
Is every gift of value subject to tax?
Every gift is countable, but most owe nothing. All gifts by one donor in a calendar year are added together, and only the total above ₱250,000 is taxed at 6% for family recipients — routine birthday money, holiday gifts, and remittances almost never cross the threshold. Gifts to friends or unmarried partners, however, are taxed at 30% from the first peso with no exemption.
This calculator provides planning estimates based on the National Internal Revenue Code as amended by the TRAIN Law (RA 10963). It is not tax advice — for filing, consult the BIR or a qualified tax professional.