Since the TRAIN Law (effective January 1, 2018), the Philippine estate tax is a flat 6% of the net estate. The net estate is the gross estate less two simplified deductions: a ₱5,000,000 standard deduction and the family home up to ₱10,000,000. This calculator applies that baseline computation — enter the total fair market value of the estate’s properties and, if applicable, the family home’s value.
How the computation works
Section 84 of the Tax Code (as amended by TRAIN) imposes 6% on the net estate. For a resident decedent, the net estate is the gross estate less:
- the standard deduction of ₱5,000,000 (Section 86) — TRAIN removed the need to itemize funeral expenses, judicial expenses, and medical expenses; and
- the family home deduction — the fair market value of the decedent’s family home as defined in the Family Code, up to ₱10,000,000. If the home is conjugal or community property, only the decedent’s share counts.
Worked example: a ₱20M estate containing a ₱8M family home pays 6% × (20M − 5M − 8M) = ₱420,000. If the deductions exceed the gross estate, the tax is simply zero — the excess generates no refund.
What this calculator does not cover
- The surviving spouse’s share in conjugal or community property: only the decedent’s share belongs in the gross estate in the first place — exclude the spouse’s half before entering the gross value. The same applies to any co-owned property: enter only the decedent’s share.
- Property previously taxed (vanishing deductions) and other evidence-backed deductions, which can reduce the tax further.
- Non-resident decedents, estates claiming the foreign tax credit, and estate-tax amnesty availments — these follow different rules.
- Penalties: late filing adds a 25% surcharge and interest, so file within the deadline.
Want the full picture?
Our companion guide explains valuation rules, what happens with unused lots and co-owned property, and the one-year filing deadline — with worked examples.
Read the Estate Tax GuideInherited property you plan to sell?
Once an heir sells inherited real property, the 6% capital gains tax applies to that sale — a separate tax from estate tax. Our CGT calculator and guide cover the selling side.
Open the CGT CalculatorFrequently Asked Questions
How much is the estate tax in the Philippines?
A flat 6% of the net estate since the TRAIN Law took effect on January 1, 2018. The old graduated rates of 5% to 20% no longer apply.
What deductions apply to the gross estate?
Two simplified TRAIN deductions: a standard deduction of ₱5,000,000 that no longer requires itemizing funeral, judicial, or medical expenses, plus a deduction for the decedent’s family home of up to ₱10,000,000 if it is included in the gross estate.
Is the family home always fully deductible?
Only up to ₱10,000,000 of its fair market value, only if it was the decedent’s actual family home, and only the decedent’s share if it is conjugal or community property. Any excess over the cap remains part of the taxable estate.
When is estate tax filed and paid?
The estate tax return (BIR Form 1801) is filed within one year from the decedent’s death under the consolidated estate tax regulations (RR 12-2018). Heirs cannot transfer titles of inherited property until the tax is paid.
Does estate tax apply to vacant or unused property?
Yes. Estate tax covers everything the decedent owned at death — idle land, rentals, and other property nobody lived in all count in the gross estate. Only the family-home deduction requires actual residence; an unused lot is shielded only by the ₱5,000,000 standard deduction.
How is the value of estate property determined?
Everything is valued as of the date of death. Land uses the BIR zonal value (or the tax-declaration market value where no zonal schedule exists); listed shares use the mean of the highest and lowest quoted prices on that date; unlisted shares use book value; deposits use the balance at death.
Is the ₱5,000,000 standard deduction per property?
No. It is applied once per estate, against the combined gross estate, no matter how many properties are involved. The family-home deduction is likewise one home per estate, up to ₱10,000,000.
What happens if a co-owner is still living?
Only the decedent’s share in co-owned property enters the gross estate; the surviving co-owner’s share was never the decedent’s property and is not taxed. For conjugal or community property, enter only the decedent’s half as the gross estate.
This calculator provides planning estimates based on the National Internal Revenue Code as amended by the TRAIN Law (RA 10963) and RR 12-2018. It is not legal or tax advice — estate settlement involves succession-law questions; consult the BIR or a qualified professional.