Capital Gains Tax Calculator Philippines 2026
Compute the 6% Capital Gains Tax plus DST, transfer tax, and registration fees on real estate sales. Uses the BIR rule of HIGHEST among selling price, zonal value, and FMV — so you know exactly what you owe before signing the deed.
Property and transaction details
Seller’s total tax bill
Total Seller’s Taxes & Fees
₱425,000.00
CGT 6% + DST 1.5% + Transfer 0.75% + Registration
Tax Computation Breakdown
The 6% CGT formula
Under Section 24(D) of the NIRC, sales of real property classified as a capital asset are subject to a 6% final tax. The base is whichever is HIGHEST:
- Selling price — what you and the buyer agreed on
- BIR zonal value — government-set per-sqm rate × lot area
- Assessor’s FMV — from your Tax Declaration
This prevents under-declaring the selling price to dodge the tax.
Formula: CGT = 6% × HIGHEST(SP, ZV, FMV)
Other seller-side costs
- Documentary Stamp Tax (DST): 1.5% of the tax basis. Usually paid by the seller but contractually negotiable.
- Local Transfer Tax: 0.75% of selling price/zonal in cities, 0.50% in provinces (LGU Code Sec. 135).
- Registration Fee (LRA): Roughly 0.25% on a sliding scale per LRA Circular. We estimate at 0.25% of basis.
- Notarial fee: ~1–2% of selling price, paid to your notary public.
Buyer-side costs are separate and typically include their own registration fees, mortgage tax (if financed), and home insurance.
Filing & deadlines (BIR Form 1706)
- Form: BIR Form 1706 — Capital Gains Tax Return for Onerous Transfer of Real Property
- Deadline: within 30 days from notarization of the Deed of Sale
- DST Form: BIR Form 2000-OT, due on the 5th day of the following month
- Payment: via the BIR RDO where the property is located, or via accredited banks
- CAR / eCAR: After payment, BIR issues a Certificate Authorizing Registration. You bring this to the Register of Deeds to transfer the title.
Penalty for late filing: 25% surcharge + 12% annual interest + ₱1,000 compromise fee.
Principal residence exemption
Under Sec. 24(D)(2), you can be EXEMPT from CGT if all of these are true:
- The property sold is your actual principal residence
- Proceeds will be used to acquire or construct a new principal residence within 18 months
- You notify the BIR within 30 days of sale
- This exemption is used only once every 10 years
If only PART of the proceeds is used for the new home, only the proportional amount is exempt. The unused portion is taxed at 6%.
When CGT does NOT apply
- Ordinary asset sales — properties held by real estate dealers, developers, or brokers as inventory. These are taxed as regular business income at graduated rates + creditable withholding tax (CWT).
- Donations / inheritance — covered by Donor’s Tax or Estate Tax, not CGT.
- Exchange transactions qualifying under Sec. 40(C)(2) (tax-free exchange in corporate restructuring).
- Foreclosure sales where the bank takes possession — handled differently.
How to minimize total costs (legally)
- Use the principal residence exemption if you qualify — saves the entire 6%.
- Negotiate who pays what. By law, CGT & DST are seller’s; transfer tax is split or buyer’s by custom. But the Deed can override this.
- Sell at zonal value if your actual price is below it — the tax is the same anyway since BIR uses the highest.
- File on time. 25% surcharge + 12% annual interest can add up fast.
- Use a licensed broker. Their commission (typically 3–5%) often saves more than it costs in avoided buyer-finance delays and pricing mistakes.