Tips and Guides

4 Questions on Real Estate Tax Answered

Learn how to compute your property tax and other practical tips

Photography: Ocs Alvarez/ACME Visual Productions

Living in a condo unit means taking note of fees such as administration or development fees. As responsible homeowners, we also need to take note of real estate taxes. How much is the payment and where can we process it?

Real estate broker and interior designer Rochelle Granali shares a couple of important information about paying real estate property taxes for condo units:

What is Real Property Tax?

“Real Property Tax (RPT) is a tax that you need to pay every year so that the local government unit (LGU) will not auction off their property. This was legislated to provide additional funds to LGUs with which to underwrite basic public services. However, there are some investors who buy tax-delinquent real properties and participate in auctions held by LGUs. This is why some people can buy properties at low prices."


Do all condo owners have to pay it?

The owner or the administrator of the unit pays for the real estate tax at the city or municipal treasurer’s office where the real property is located.

It’s advisable to pay the Real Property Tax and Special Education Tax on time because most cities and municipalities offer discounts ranging from 10% to 20% of the basic tax on early full payment or quarterly payments of Real Property Tax and Special Education Fund Tax.

How much does it usually cost?

The cost of the Real Property Tax is computed through multiplying the Real Property Rate by the assessed Value. (RPT = RPR x AV)

If you live in Metro Manila, the rate is 2% but if your property is located in the province, the rate will be 1%. As for the assessed value, you need to know the fair market value established by your provincial or city assessor’s office then you need to multiply it by assessment level.

 Is it applicable for rent to own units?

For condo developers, it’s a case-to-case basis. Some developers will have the unit turned over first, then unit owners will have to pay for the real estate tax even though the title is not yet transferred. Payment of real estate tax is in proportionate allocation method since it is a condominium corporation. For some, when the condominium certificate of title is transferred, that’s the time wherein they have to pay for the real estate tax.

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