Owning land or a building in the Philippines comes with a yearly bill: the real property tax, universally called amilyar. It is levied by your province, city, or municipality under the Local Government Code (RA 7160, Secs. 197–283) — not by the BIR — and it is the tax that keeps accruing even on a vacant lot you never visit. This guide explains the computation step by step, the education-dedicated SEF that rides on top of it, and the discounts that reward early payers. You can run your own figures in our amilyar calculator and compare LGU rates in the all-cities rate table.
The computation in two steps
Step 1 — Assessment (Sec. 218): your property’s fair market value is converted to assessed value by an assessment level fixed by your LGU’s ordinance within statutory ceilings:
| Property | Statutory ceiling |
|---|---|
| Residential land | up to 20% of market value |
| Commercial / industrial land | up to 50% |
| Agricultural land | up to 40% |
| Residential buildings | sliding 0% (first ₱175,000) to 60% (above ₱10M) |
| Commercial buildings | sliding 30% to 80% |
Step 2 — Levy (Secs. 233 + 235): the assessed value is taxed at the basic rate — up to 1% in provinces, up to 2% in cities and Metro Manila municipalities — plus the 1% Special Education Fund. Worked example: a ₱10M residential lot with an ₱8M house in Quezon City is assessed at ₱2M (land) + ₱4M (building, 50% band) = ₱6M, then taxed at 2% + 1% = ₱180,000/year. The identical property in Cebu City — whose assessment levels run far lower — would owe a small fraction of that.
The Special Education Fund (SEF): where the extra 1% goes
Every amilyar bill carries an extra line: the SEF, a 1% levy on assessed value collected with the basic tax (Sec. 235). Unlike the basic tax, which feeds the LGU’s general operations, SEF proceeds accrue exclusively to education: public school construction and maintenance, instructional materials, and local education programs, budgeted by the Local School Board (chaired by the mayor or governor, with the schools division superintendent as co-chair).
- Same base, same schedule: the SEF taxes the identical assessed value, is collected simultaneously with the basic RPT, and follows the same quarterly installments. Partial payments are applied to both proportionally.
- Uniformly maxed: the law allows up to 1%, and every LGU in our 33-city verified sample levies the full 1% — the one perfectly uniform element of an otherwise wildly varying tax.
- It is why “2%” means 3%: a Quezon City property pays 3% of assessed value in total (2% basic + 1% SEF).
- Lineage: it descends from RA 5447 (1970s), which first dedicated a 1% property-tax slice to education; the LGC carried it forward.
When to pay — and how to pay less
The annual tax accrues on January 1 and may be paid in full or in four equal installments due March 31, June 30, September 30, and December 31 (Sec. 250). The real savings lever is timing: LGUs may grant up to a 20% discount for advance or prompt payment (Sec. 251), and the schedules we verified from official notices show the range:
- Davao City: 20% off for full payment before March 31; 10% for on-time quarterly payments.
- Dasmariñas: 10% quarterly (paid by the 20th of the opening month), 10% full by March 31 — and 20% for paying the next year’s tax before December 31 of the prior year.
- Makati: 10% if basic + SEF are paid in full by January 20; 5% within the first 20 days of the quarter.
- Ilocos Norte: tiered 20% / 15% / 10% by progressively later advance dates.
If you pay late
Delinquency adds a surcharge of up to 25% plus interest of up to 2% per month on the unpaid amount including surcharges, capped at 36 months (Sec. 168). Enforcement escalates from a published delinquency notice to an administrative levy on the property — which can end in a public auction — or a judicial collection action. Unpaid amilyar also blocks the transfer of title when you eventually sell: no eCAR is issued until arrears are cleared.
Vacant and idle lots
There is no “lived-in only” exemption — all real property pays. Idle lands can pay more: LGUs may add up to 5% per year on idle lands (Sec. 236), and some do — Iloilo City adds 2% (residential) and 3% (commercial/agricultural/industrial); Dasmariñas adds 3%. What counts as “idle” is defined by ordinance (typically residential lots above a size threshold without improvements).
Your tax declaration is the ground truth
Because both the assessment level and the rate vary by LGU ordinance, the single most reliable document is your own Tax Declaration of Real Property: it states the fair market value, the assessment level applied, and the resulting assessed value that the treasurer actually bills. Use our calculator to estimate from market values, then reconcile against the declaration — and note that assessments may only be revised once every three years (Sec. 219), so a general revision can move your bill significantly when it comes.
Run your own numbers
The calculator carries verified CY2025–2026 rates for 33 LGUs and lists all 149 cities — enter your values, pick your LGU, get the full breakdown.
Open the Amilyar CalculatorFrequently Asked Questions
Is amilyar collected by the BIR?
No. Real property tax is a local tax collected by your city, municipal, or provincial treasurer — never the BIR. The BIR handles the transfer taxes (capital gains tax, donor’s tax, estate tax) triggered when property is sold, given, or inherited.
Why is my assessed value lower than my property’s market value?
By design. The assessment level is the fraction of fair market value that becomes taxable: up to 20% for residential land, up to 50% for commercial land, and sliding scales for buildings (LGC Sec. 218). A ₱10M residential lot is taxed on only ₱2M of assessed value.
When is the cheapest time to pay amilyar?
Early. The law allows LGUs to grant up to a 20% discount for advance or prompt payment (Sec. 251): Davao City gives 20% for full payment before March 31, Dasmariñas 10% quarterly and 20% for paying the next year’s tax before December 31 of the prior year, and Makati 10% if paid in full by January 20.
What happens if I never pay real property tax?
Unpaid RPT accrues a surcharge of up to 25% plus interest of up to 2% per month (capped at 36 months), and the LGU can enforce through an administrative levy leading to a public auction of the property, or judicial collection.
Does a vacant lot still pay real property tax?
Yes — and often more. All real property pays the annual tax regardless of use, and LGUs may add up to 5% per year on idle lands (Sec. 236); Iloilo City, for example, adds 2% for residential and 3% for commercial idle lands.
Sources: Local Government Code (RA 7160) Secs. 168, 197–283 (DILG-published text); CY2025–CY2026 LGU payment notices via the DOF Bureau of Local Government Finance; verified in our all-cities rate table. General information, not tax advice — your LGU’s treasurer and assessor are authoritative.