Land and Building Tax in Philippines

samangelevski wrote:

Hi I am very interested to know how every one is paying Tax on Land or on Building or both. . . .
so I like to know what you guys pay and how you do it??

I have my assistant go to Tax Assessor's Office at Quezon City Hall before March 31 of each year to pay in full real property taxes for my house and lot in Quezon City. (Quezon City gives a 20% discount to those who pay taxes in full on or before March 31 of the current year.) I have her bring last year's tax receipt and a notarized authorization letter stating that I am authorizing her to make payments on my behalf.

Unless there's an increase in zonal valuation for my property, taxes for this year would be the same as last year's. I have my assistant bring the amount paid last year in cash plus an extra amount to cover increases in zonal valuation, if any.   

I keep the receipts. We go through the same routine each year. We try to pay before the end of February to avoid long queues.

samangelevski wrote:

I have been talking to many people here in province and they all said they have never paid for Building only land, and when I told them they are asking me to pay, they said to ignore them, and no need to pay for building, i am kind of confused in what to do or what is the truth.

There is a saying here: "Something illegal is not illegal until one gets caught." If those people get caught, they would have to pay not only unpaid taxes, but also penalties and interest. There is also the possibility of imprisonment. It is up to you if you want to risk it.

I would suggest going to the Tax Assessor's office in your city or municipality. Have your property -- land and building -- assessed. A reasonable assessment would be based mainly on two things: zonal valuation (not selling price) of the property and the bill of materials and labor or the cost of construction of your structure as stated in your building permit.

Do not transact with / give money to inspectors visiting your property. All payments should be made at the Tax Assessor's Office.  See if you can avail of early-bird discounts.  Pay your property taxes properly and promptly.

samangelevski wrote:

Yes this what I was asking for, need real price and maybe how they come to this price if someone knows, or is it charge whatever they want,

As I had advised in my previous post:

"I would suggest going to the Tax Assessor's office in your city or municipality. Have your property -- land and building -- assessed. A reasonable assessment would be based mainly on two things: zonal valuation of the property and the bill of materials and labor or the cost of construction of your structure as stated in your building permit."

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Check the zonal valuation of your property. Here's a link to zonal values as per the Bureau of Internal Revenue's (BIR) website: https://www.bir.gov.ph/index.php/zonal-values.html


A reasonable assessment for my property would be something like this:

Zonal value for my area: PhP9,750 / sq. meter
No. of square meters of my property: 308

Assessment for land: PhP9,750 x 308 sq. meters = PhP3,003,000

Cost of construction as per bill of materials submitted when I applied for building permit: PhP4,500,000.

Reasonable assessment for land and building: PhP3,003,000 + PhP4,500,000 = PhP7,503,000

In Quezon City, the tax rate is 2.5% of assessed value for residential properties.

Property tax: PhP7,503,000 x 2.5% = PhP187,575

Early bird discount: PhP187,575 x 20% = PhP37,515

Approximate tax due: PhP187,575 - 37,515 = PhP150,060

You said an inspector is coming to your house to assess its value. When you go to the Assessor's office to get the final assessment, ask if they can lower the assessment for your building. Sometimes, they will. Ask nicely and be politely. Being respectful goes a long way here in the Philippines.