What taxes apply when buying property in the Philippines?

Four main charges apply on a sale of registered real property: capital gains tax of 6% (usually paid by the seller), documentary stamp tax of 1.5%, a local transfer tax of 0.5–0.75% set by the LGU, and a registration fee of roughly 0.25%. By custom the seller pays CGT while the buyer pays DST, transfer tax and registration.

What value is the tax based on?

Taxes are charged on the highest of the actual selling price, the BIR zonal value, or the assessor's fair market value. Using a low contract price does not reduce the tax if the zonal or assessed value is higher, so the BIR uses the larger figure as the base.

How much is documentary stamp tax on a property sale?

Documentary stamp tax (DST) on a deed of sale of real property is 1.5% (PHP 15 for every PHP 1,000) of the tax base. It must be paid to the BIR, usually by the fifth day of the month after the deed is notarised.

Does the local transfer tax rate vary?

Yes. The transfer tax is a local government levy capped by law at 0.5% in provinces and up to 0.75% in cities and municipalities within Metro Manila. Each LGU sets its own rate within those limits, so confirm the rate with the local treasurer's office.

Does this calculator store my data?

No. Everything is computed locally in your browser and nothing is uploaded, so you can estimate your closing costs privately.

Philippines Stamp Duty / Transfer Tax Calculator

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This Philippines stamp duty and transfer tax calculator estimates the closing taxes on a real-property sale: the documentary stamp tax, the local transfer tax, the registration fee, and the seller’s capital gains tax. It splits the bill the way Philippine practice does — seller pays CGT, buyer pays the rest — so each side can see its share.

How it works

All taxes are charged on the tax base, which is the highest of the selling price, the BIR zonal value, or the assessor’s fair market value. The levies are:

Capital gains tax — 6% of the base, conventionally paid by the seller.
Documentary stamp tax (DST) — 1.5% of the base, paid by the buyer.
Local transfer tax — 0.5% in provinces up to 0.75% in cities, set by the LGU, paid by the buyer.
Registration fee — roughly 0.25% of the base, paid by the buyer.

The calculator computes each charge and totals the buyer’s and seller’s closing costs.

Example

On a PHP 5,000,000 base with a 0.75% transfer tax: capital gains tax is PHP 300,000 (seller), DST is PHP 75,000, transfer tax is PHP 37,500 and registration is about PHP 12,500 (buyer). The buyer’s transfer cost is roughly PHP 125,000 and the seller pays PHP 300,000 in CGT — a combined PHP 425,000, about 8.5% of the price.

Notes

The registration fee actually follows a graduated LRA schedule rather than a flat percent, so treat the 0.25% as an approximation. Notarial fees (often around 1–2%) and any unpaid real property tax are extra. Always use the higher of price, zonal or assessed value — undervaluing the deed does not lower the tax. This tool is an estimate, not formal tax advice.