What the tax is charged on
Two values decide the tax, and the larger one wins. Here is what each part means.
What you agreed to sell the property for, as written on the deed of sale.
your sale amountThe higher of the BIR zonal value and the assessor's market value. The tax uses this if it is larger than your price.
the BIR's floorCapital gains tax at 6 percent, and documentary stamp tax at 1.5 percent, both on the higher of the two values above.
6% + 1.5%The higher value wins
one sale, two taxesCapital gains tax on property is a flat 6 percent, and the figure it is charged on is the higher of your selling price and the property's fair market value. Fair market value here is itself the higher of the BIR zonal value and the assessor's market value from the tax declaration. So declaring a low selling price does not pull the tax below what the zonal or assessed value implies, because the larger number always sets the base.
Alongside the capital gains tax sits the documentary stamp tax on the deed of sale, 1.5 percent of that same base, and the calculator adds both for you. Suppose you sell for ₱3,000,000 but the zonal value is ₱3,500,000. The tax runs on ₱3,500,000, giving ₱210,000 in capital gains tax and ₱52,500 in documentary stamp tax, ₱262,500 in all. This applies to real property held as a capital asset, meaning a home, lot, or condo not used in a trade or business.
By law the capital gains tax is the seller's, though who actually shoulders it and the documentary stamp tax is negotiable and should be written into the deed before closing. The capital gains tax is filed with the BIR within 30 days of the sale, and the documentary stamp tax by the fifth day of the month after the deed is signed. Only once both are settled is the Certificate Authorizing Registration released, which the Registry of Deeds needs to transfer the title. For the yearly tax you owe while you still hold property, see the real property tax calculator.
Questions people ask
answered in plain wordsIt is a flat 6 percent of the tax base, and the tax base is the higher of your selling price and the property's fair market value. Fair market value here means the higher of the BIR zonal value and the assessor's market value on the tax declaration.
The tax is charged on whichever is higher, so declaring a low selling price does not lower the tax below what the zonal or assessed value implies. If the BIR values the property higher than your sale, the tax is based on that higher figure.
It is a separate tax on the deed of sale, 1.5 percent of the same tax base. It is due on the sale along with the capital gains tax, so this tool shows both and adds them for you.
By law the capital gains tax is the seller's. In practice who shoulders it, and the documentary stamp tax, is negotiable and should be spelled out in the deed of sale. Confirm the arrangement in writing before closing.
It applies to real property held as a capital asset, meaning property not used in a trade or business. Property that is part of a business, such as a developer's inventory or a leased commercial building, is taxed differently. This tool is for the ordinary sale of a home, lot, or condo.
The capital gains tax is filed with the BIR within 30 days of the sale, and the documentary stamp tax by the fifth day of the month after the deed is signed. The Certificate Authorizing Registration, which the Registry of Deeds needs to transfer the title, is released once these are settled.
No. Every calculation runs privately on your device. Nothing you type is stored, tracked, or sent to a server.
Where these numbers come from
straight from the sourceThe rates and rules on this page follow the official issuances below. When an agency updates a schedule, this is where to confirm the current figure against your own situation.