Short answer: for deaths covered by the post-TRAIN estate tax rules, Philippine estate tax is generally 6% of the net taxable estate. The tax is not simply 6% of the selling price of a house. You first list the estate assets, value them as of the date of death, remove the surviving spouse share when applicable, then apply deductions such as the PHP 5 million standard deduction and up to PHP 10 million family home deduction.

The estate tax return is filed using BIR Form 1801, generally within one year from the date of death. If the estate includes land, condominium units, vehicles, shares of stock, or other registrable property, heirs usually need BIR clearance before transfer. For a quick estimate, use the Estate Tax Calculator Philippines.

Jump to a Section

• 2026 estate tax rules at a glance
• Who files BIR Form 1801
• Estate tax formula
• Allowed deductions
• Deadline, penalties, and installment payment
• Sample computations
• eCAR and title transfer process
• Common mistakes heirs make
• FAQs

1. 2026 Estate Tax Rules at a Glance

Estate tax is a transfer tax on the right to pass property from a deceased person to heirs or beneficiaries. It is separate from real property tax, capital gains tax, donor’s tax, inheritance disputes, and notarial or transfer expenses.

Item	2026 rule	Plain-English meaning
Tax rate	6% of net taxable estate	The rate applies after allowable deductions, not automatically to gross assets
Return	BIR Form 1801	The estate tax return used by heirs, executor, or administrator
Filing deadline	Within 1 year from death	Late filing can trigger surcharge, interest, and compromise penalty
Standard deduction	PHP 5,000,000 for citizen/resident estates	Automatic deduction; no receipts needed
Family home deduction	Up to PHP 10,000,000	Limited by the value and ownership share of the family home
Real property value	Higher of BIR zonal value or assessor FMV	The tax base is not always the price heirs want to declare

2. Who Files BIR Form 1801?

BIR Form 1801 is filed by the executor, administrator, or any legal heir. It can also be filed by a person in actual or constructive possession of the decedent’s property if no executor or administrator is acting in the Philippines.

Under the BIR’s Form 1801 instructions, filing is required in cases of transfers subject to estate tax and for estates with registered or registrable property where BIR clearance is needed before transfer. That includes common family assets like titled land, condominium units, vehicles, shares of stock, and similar property.

Common documents heirs prepare

• Death certificate of the decedent.
• TINs of the decedent, estate, executor or administrator, and heirs as applicable.
• Affidavit of self-adjudication, deed of extrajudicial settlement, court order, or sworn declaration depending on how the estate is settled.
• Land titles, tax declarations, certificates of no improvement, stock certificates, vehicle documents, bank certificates, or other asset proof.
• Proof for claimed deductions, especially debts, property previously taxed, transfer for public use, and family home certification.

3. Estate Tax Formula

The basic computation is easier when separated into steps:

1. List the gross estate as of the date of death.
2. Value each asset using the required estate tax valuation rule.
3. Remove the exclusive property of the surviving spouse and determine the decedent’s share in conjugal or community property.
4. Subtract allowable deductions such as the standard deduction, family home, claims against the estate, and other qualified deductions.
5. Multiply the net taxable estate by 6%.

Estate tax due = Net taxable estate x 6%

For real property, BIR Form 1801 instructions say the value is the higher of the BIR zonal value or the fair market value shown in the provincial or city assessor’s schedule of values. This is why estate tax can surprise heirs when an old tax declaration value is lower than the applicable BIR zonal value.

4. Allowed Deductions in 2026

Deductions depend on whether the decedent was a citizen, resident alien, or non-resident alien, and whether the property is in the Philippines. For many Filipino family estates, these are the deductions heirs ask about first:

Deduction	Typical rule	Notes
Standard deduction	PHP 5,000,000	Generally automatic for citizen/resident estates under TRAIN rules
Family home	Up to PHP 10,000,000	Limited to the decedent’s interest and current FMV of the family home
Claims against the estate	Allowed if properly documented	Loans and enforceable obligations need proof
Unpaid mortgages	Allowed if connected to included property	Debt must be supported and properly traced
Property previously taxed	Allowed subject to percentage limits	Also called vanishing deduction; applies only in specific cases
Transfers for public use	Allowed if requirements are met	Usually needs documentary support
RA 4917 retirement benefits	Potentially deductible	Applies to qualified retirement benefits received by heirs

5. Deadline, Penalties, and Installment Payment

For deaths covered by the current Form 1801 instructions, the estate tax return is generally filed within one year from the date of death. In meritorious cases, the Commissioner may grant a filing extension not exceeding 30 days.

If the estate has cash-flow problems, the Form 1801 instructions allow payment by installment when the available cash of the estate is insufficient to pay the total estate tax due, subject to approval by the concerned BIR official and within the allowed period. This is not the same as ignoring the deadline. Heirs should ask the RDO early, especially when the estate is mostly land-rich but cash-poor.

Situation	What usually happens
Filed and paid on time	BIR reviews the return and documents, then issues clearance/eCAR when requirements are satisfied
Filed late	Possible surcharge, interest, and compromise penalties
No cash but estate has assets	Ask the RDO about installment payment instead of waiting until penalties grow
Old estate covered by prior law	Computation may depend on the date of death and applicable law at that time

6. Sample Estate Tax Computations

These examples are simplified. Real cases can involve spouse shares, multiple properties, unpaid mortgages, heirs abroad, prior transfers, and RDO document requirements.

Example A: Family home below deduction limits

Gross estate	PHP 8,000,000 family home
Less: standard deduction	PHP 5,000,000
Less: family home deduction	PHP 8,000,000, limited by value and ownership rules
Net taxable estate	PHP 0
Estate tax due	PHP 0, before penalties or other fees if any

Example B: Larger estate with real property and savings

Gross estate	PHP 24,000,000
Less: standard deduction	PHP 5,000,000
Less: family home deduction	PHP 10,000,000
Net taxable estate	PHP 9,000,000
Estate tax due	PHP 540,000

Use the Estate Tax Calculator when you want to test spouse share, family home amount, debts, and other deductions in one place.

7. eCAR and Title Transfer Process

After filing and payment, the BIR review does not end with a receipt. For real property and other registrable assets, heirs usually need the BIR clearance or electronic Certificate Authorizing Registration (eCAR) before the Registry of Deeds, assessor, corporate secretary, or other office will complete transfer.

1. Settle the estate documents: deed of extrajudicial settlement, affidavit of self-adjudication, or court settlement as applicable.
2. Prepare BIR Form 1801 and attachments.
3. File and pay with the correct RDO or authorized channel.
4. Respond to BIR document review if the examiner asks for missing documents or corrections.
5. Secure eCAR or clearance.
6. Proceed with title transfer, assessor update, and related transfer taxes or fees.

For the next stage after estate tax, read the Land Title Transfer Philippines Guide and use the Land Title Transfer Cost Calculator.

8. Common Mistakes Heirs Make

• Waiting for a buyer before settling estate tax. A sale can get stuck because the seller is not yet the registered owner.
• Using only the tax declaration value. BIR valuation may require a higher zonal value.
• Forgetting the spouse share. The estate is not always 100% of conjugal or community property.
• Assuming the PHP 5 million standard deduction means no filing. A return may still be required when registrable property needs BIR clearance.
• Confusing estate tax with real property tax. Amilyar is annual property tax; estate tax is a transfer tax triggered by death.
• Ignoring old estates. The applicable law and penalties can depend on the date of death.
• Doing the BIR step after the title transfer paperwork. Most transfer work depends on BIR clearance first.

9. FAQs

Is estate tax 6% of the house value?

Not necessarily. The 6% rate applies to the net taxable estate after valuation, spouse share, and allowable deductions. A family home may also qualify for a deduction up to PHP 10 million.

What if the estate tax computation is zero?

Heirs may still need to file if the estate includes registrable property requiring BIR clearance before transfer.

Can heirs sell the property before paying estate tax?

A buyer may sign documents, but transfer can stall if the estate has not been settled and the title is still under the deceased person’s name. In practice, estate settlement and BIR clearance usually come first.

Is estate tax amnesty still available in 2026?

The estate tax amnesty program had a statutory deadline that already passed before 2026. For 2026 planning, assume regular estate tax rules unless the government enacts a new amnesty law.

Do heirs need a lawyer or accountant?

Simple estates may be manageable with careful preparation, but professional help is often worth it when there are multiple heirs, minors, disputes, missing titles, unpaid debts, corporations, foreign assets, or old estates.

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Related Calculators and Guides

• Estate Tax Calculator Philippines
• Land Title Transfer Cost Calculator
• Land Title Transfer Philippines Guide 2026
• Real Property Tax (Amilyar) Philippines 2026 Guide
• First-Time Home Buyer Philippines 2026 Guide

Official Sources and Further Reading

• BIR Form 1801 Guidelines and Instructions
• BIR Form 1801: Estate Tax Return
• BIR Revenue Regulations No. 12-2018 on estate and donor’s tax
• Republic Act No. 10963: TRAIN Law
• BIR RMC No. 33-2026 on estate tax amnesty documentary requirements