Real Property Tax (Amilyar), Explained

Amilyar, the yearly real property tax, is not charged on your property's full market value. It runs through two reductions before a rate is applied, which is why the bill is usually smaller than people brace for.

From market value to assessed value

Start with the fair market value in your local assessor's schedule. That is not the figure taxed. It is multiplied by an assessment level set by your local government, which differs by how the property is used. Residential land carries a lower assessment level than commercial or industrial land. The result is the assessed value, and this is what the tax rate meets.

The basic rate

The basic real property tax is a percentage of the assessed value. A province may charge up to 1 percent, while a city or a municipality within Metro Manila may charge up to 2 percent. The exact rate is set by local ordinance, within those ceilings.

The Special Education Fund

On top of the basic tax, local governments add 1 percent of the assessed value for the Special Education Fund, which supports public schools. So a typical city bill is the basic rate plus this 1 percent, both applied to the same assessed value.

A worked example

Take a residential lot with a fair market value of ₱2,000,000 and a residential assessment level of 20 percent. The assessed value is ₱400,000. In a city charging the full 2 percent basic rate, the basic tax is ₱8,000, and the 1 percent Special Education Fund adds ₱4,000, for a total of ₱12,000 for the year. Assessment levels and rates are set locally, so your own bill depends on your city or province.

To estimate your amilyar, use the real property tax calculator.