Real Property Tax (Amilyar) 2026 Complete Guide: How to Compute, Pay, and Save 20%
Everything PH homeowners need to know about Amilyar in 2026 — the exact formula, up-to-20% early payment discount, penalties for late, exemptions, how to appeal your assessment, and how to spot when the LGU overcharged you.
Every January, a small envelope from the City Hall Assessor arrives. Inside: your Real Property Tax (RPT) bill, or as most Filipinos call it, “Amilyar.”
Most homeowners either pay whatever it says without checking, or ignore it entirely and eat compounding 2% monthly penalties. Both are expensive. A properly-managed Amilyar can save you 10-20% every year through the early-payment discount — and catch tens of thousands in over-assessment.
Here’s the 2026 complete guide to Real Property Tax in the Philippines — the formula, deadlines, discounts, penalties, exemptions, and how to appeal when the assessor got your property value wrong.
1. What is Amilyar?
Amilyar is the Filipino term for Real Property Tax (RPT), an annual local tax on land, buildings, and permanent improvements paid to your city or municipal government.
Legal basis: Republic Act 7160 (Local Government Code of 1991), Sections 232-283. It’s administered by your LGU’s Assessor and Treasurer offices — NOT the BIR.
- Applies to: land, buildings, machinery (permanent), improvements
- Paid annually or quarterly to your city/municipal Treasurer
- Funds LGU services: barangay, police, road maintenance, public schools (via SEF)
• Transfer Tax: 0.5-0.75% one-time when title transfers — paid to LGU.
• Documentary Stamp Tax: 1.5% one-time on deed of sale — paid to BIR.
Amilyar is the recurring ANNUAL tax on ownership.
2. The RPT formula
The Local Government Code formula:
RPT = Fair Market Value × Assessment Level × RPT Rate
Plus an additional 1% SEF (Special Education Fund) tax on the same base.
Three components explained:
- Fair Market Value (FMV): from your LGU’s Schedule of Market Values (SMV). Updated every 3 years.
- Assessment Level: set by LGU ordinance. Under LGC Sec. 218: max 20% for residential land, 40% for commercial land, 50% for industrial. Improvements/buildings scale by value.
- RPT Rate: max 1% for provinces, max 2% for cities/municipalities in Metro Manila.
Calculate your exact Amilyar
Enter FMV, property type, and LGU rate. See annual bill + discount.
Real Property Tax Calculator Land Title Transfer3. Worked example (Quezon City ₱3M house)
Sample: House & Lot in Quezon City, FMV ₱3,000,000
Pay in full January-March: get 10-20% discount (varies by LGU). QC gives 10% for annual payment: final bill ~₱16,200.
4. Discounts and payment schedule
| Payment window | Discount | What you pay |
|---|---|---|
| Jan (annual, full year) | Up to 20% (varies) | 80-90% of full amount |
| Feb-Mar (annual) | 10-15% | 85-90% of full |
| Q1 (by March 31) | 10% possible | Quarterly amount less discount |
| Q2 (by June 30) | 0% | Full quarterly |
| Q3 (by Sept 30) | 0% | Full quarterly |
| Q4 (by Dec 31) | 0% | Full quarterly |
Deadline for the annual discount varies by LGU. Manila: Jan 31. Quezon City: Mar 31. Makati: Jan 31. Check your city’s ordinance or Treasurer’s notice.
5. Penalties for late payment
Under LGC Section 255: 2% penalty per month on unpaid amount, capped at 72% (36 months / 3 years).
| Months late | Penalty |
|---|---|
| 1 month | 2% |
| 6 months | 12% |
| 1 year | 24% |
| 2 years | 48% |
| 3+ years (max) | 72% |
6. Where and how to pay
In-person (traditional)
- Your city/municipal Treasurer’s Office (bring last year’s Official Receipt or Tax Declaration number)
- Landbank / DBP / PNB branches for select LGUs
Online (2026)
These LGUs offer online RPT payment:
- Quezon City: QC eServices portal + Maya/GCash
- Manila: gomanila.com portal
- Makati: Makatizen app
- Pasig: Pasig City Online (online.pasigcity.gov.ph)
- Taguig / BGC: Taguig Business One-Stop
- Muntinlupa: Muntinlupa Business Portal
- Cebu City: eGov Cebu
- Davao City: Davao City eServices
What you need: Tax Declaration Number (TD Number) from your latest RPT bill or Tax Dec. Some LGUs use Property Index Number (PIN).
7. Exemptions (who doesn’t pay Amilyar)
Under LGC Section 234, the following are exempt:
- Real property owned by the Republic of the Philippines or its instrumentalities (not GOCCs used commercially)
- Property owned by charitable, religious, or educational institutions used exclusively for those purposes
- All machinery/equipment for pollution control and environmental protection
- Real property owned by duly registered cooperatives under RA 6938
- Machinery/equipment for water districts and government-owned power generation
Private residential property is never exempt, even for senior citizens, PWD, or low-income families. Some LGUs give discounts (not exemptions) for these — check locally.
8. Tax Declaration: what it is and why you need it
A Tax Declaration (Tax Dec) is the LGU document that establishes:
- Who owns the property (for RPT purposes)
- The property’s classification (residential/commercial/agricultural)
- The Fair Market Value used for RPT
- Improvements on the land (house, fence, etc.)
Tax Dec is NOT proof of ownership — that’s the TCT (Transfer Certificate of Title) at the Registry of Deeds. But you need both for a complete property record.
• Within 60 days of finishing new construction or major renovation
• Whenever land classification changes (agri to residential)
Failure to declare improvements = LGU can back-tax you when they discover it (usually via aerial survey or neighbor complaint).
9. How to appeal your assessment
Think your assessment is too high? You can appeal.
- Get the SMV table from your LGU Assessor’s Office. Check the FMV assigned to your barangay/street.
- Compare with actual market prices from Lamudi, Property24, similar recent sales.
- File a Notice of Appeal at the Local Board of Assessment Appeals (LBAA) within 60 days of receiving the assessment.
- LBAA decides within 120 days.
- If unhappy: appeal to Central Board of Assessment Appeals (CBAA) within 30 days.
- Final appeal: Court of Tax Appeals (CTA) and Supreme Court.
You must still pay under protest during the appeal to avoid penalties. If you win, you get a refund with interest.
10. Idle land tax + special levies
Idle Land Tax (LGC Sec. 236)
Additional tax of up to 5% of assessed value on idle/undeveloped urban land. Applies to:
- Agricultural land over 1 hectare unused for 3 years
- Residential/commercial land in cities over 1,000 sqm unimproved for 3 years
Special Levy for Public Works (LGC Sec. 240)
Additional levy up to 60% of actual cost of public works (roads, drainage) on properties that benefit. LGU must justify + hold hearings before imposing.
11. Real Amilyar bills by area (2026 estimates)
| Property | FMV | Location | Est. Annual Amilyar |
|---|---|---|---|
| Condo unit 40sqm | ₱3M | BGC / Makati | ₱15,000-25,000 |
| House + lot 100sqm | ₱5M | Quezon City suburb | ₱18,000-30,000 |
| House + lot 200sqm | ₱3M | Cavite / Bulacan suburb | ₱9,000-15,000 |
| Agri lot 500sqm | ₱500K | Batangas province | ₱1,000-2,000 |
| Commercial lot 200sqm | ₱10M | Ortigas / Makati | ₱60,000-100,000 |
Actual bills vary widely by LGU. Cities charge 2% + 1% SEF = 3%; provinces charge 1% + 1% SEF = 2%. Assessment levels also differ per LGU ordinance.
12. Common Amilyar mistakes
- Missing the January discount window. Loses 10-20% savings. Set a calendar reminder.
- Ignoring the bill. 2% monthly penalty compounds fast. Ignore for 3 years = 72% surcharge.
- Not updating Tax Dec after buying. Previous owner’s name may still be on it — problems when you sell.
- Not declaring improvements. Building a house or adding a floor without updating Tax Dec = back-tax when LGU finds out.
- Accepting the SMV blindly. LGUs sometimes reassess based on outdated / high-end comparables. Check your appeal rights.
- Assuming Tax Dec = ownership. Only the TCT/CCT at LRA proves ownership.
- Not paying under protest during appeal. You keep accruing penalties even during appeal if you don’t pay.
13. Amilyar payment checklist (do this yearly)
- Watch for RPT bill in January (or check LGU portal)
- Verify Tax Dec info is current (owner name, classification, improvements)
- Compute using our RPT calculator as a sanity check
- Pay in January for max discount (up to 20%)
- Get Official Receipt (OR) — keep for at least 10 years
- Update home records; you’ll need OR for future title transfers, loan applications, and visa proof-of-ownership
Verdict for 2026
Amilyar is one of the few taxes where a 5-minute action saves you 10-20%. Pay in January for the maximum discount, keep your Tax Declaration updated whenever you renovate or acquire property, and appeal if the assessed value is out of line with actual market prices. Never let RPT go 3+ years unpaid — the 72% penalty and auction risk aren’t worth it. Set a calendar reminder for every January and treat Amilyar like any other annual bill.
Related property + tax calculators
From annual RPT to full property purchase costs.
Real Property Tax Land Title Transfer Mortgage Pag-IBIG HousingBased on 2026 Local Government Code (RA 7160), Sections 232-283 on Real Property Taxation, and current LGU ordinances for Metro Manila cities. Assessment levels and RPT rates are set by individual LGU ordinances within the LGC caps (20% residential land, 2% RPT rate city). Discount percentages vary; check your LGU Treasurer’s office. Penalty of 2%/month capped at 72% per LGC Section 255. Idle land + special levy per Sections 236, 240. This article is educational, not personalized property advice. For specific cases, consult your LGU Assessor or a tax lawyer. LGU hotline: 8888 (Presidential Complaints Center).