Quick answer

Real property tax, commonly called amilyar, is an annual local tax on land, buildings, and improvements. Under the Local Government Code, the basic rate is up to 1% of assessed value in provinces and up to 2% in cities and municipalities within Metro Manila, plus an additional 1% for the Special Education Fund. It may be paid in full on or before January 31 or in four quarterly installments, and unpaid tax earns 2% interest per month.

Every landowner in the Philippines meets amilyar sooner or later. It is the annual real property tax that local governments collect on land, buildings, and improvements, and it is the tax most often forgotten — until a sale falls through, or the city treasurer sends a notice of delinquency. This commentary explains how much it is, when it is due, what happens if you do not pay, and one important deadline that has just passed.

What Real Property Tax Is and Who Pays It

Real property tax is imposed by the local government unit on land, buildings, machinery, and other improvements. It is due from the owner or administrator, and it attaches to the property itself — which is why unpaid amilyar follows the land and surfaces during a sale or an estate settlement. Importantly, the tax is not computed on the market price. It is computed on the assessed value, which is the fair market value multiplied by the assessment level fixed for that class of property.

The Rates: Basic Tax Plus the Special Education Fund

Under Section 233 of the Local Government Code, the basic real property tax may not exceed:

On top of that, Section 235 allows an additional annual levy of 1% of assessed value for the Special Education Fund (SEF). So a typical bill is the basic tax plus SEF — commonly around 2% of assessed value in a province and 3% in a Metro Manila city. Idle land tax and other special levies may apply on top in some localities.

Deadlines, Installments, and the Early-Payment Discount

Under Section 250, the basic real property tax may be paid in full on or before January 31, or in four equal installments due on or before March 31, June 30, September 30, and December 31. Many owners pay early for good reason: under Section 251, the local sanggunian may grant a discount not exceeding 20% of the annual tax due for advance or prompt payment. Whether a discount is offered, and how much, depends on the local ordinance — so ask your treasurer.

What Happens If You Do Not Pay

Delinquency is expensive. Under Section 255, unpaid real property tax earns interest at 2% per month on the unpaid amount until fully paid, provided that the total interest may not exceed 36 months — a ceiling of 72%. Beyond interest, the tax is a lien on the property, and the local government may proceed by administrative action to levy on the property and sell it at public auction, or by judicial action. A delinquent owner has a right of redemption within the period the law allows, but the safer course is never to reach that stage.

The RA 12001 Amnesty Has Closed

Owners carrying old delinquencies had a window, and it has now shut. Republic Act No. 12001, the Real Property Valuation and Assessment Reform Act, took effect on July 5, 2024 and granted an amnesty covering penalties, surcharges, and interests on all unpaid real property taxes — including the SEF, idle land tax, and other special levies — incurred before the law took effect. That amnesty could only be availed within two years from effectivity, so the window closed on July 5, 2026.

Delinquent owners are therefore back to the regular regime, with interest running under Section 255. One practical caveat: local governments have authority to pass their own ordinances on the manner of payment, and some LGUs run their own amnesty or condonation programs from time to time. If you are carrying arrears, it is worth asking your city or municipal treasurer whether any local program is currently open.

What RA 12001 Changes Going Forward

Beyond the amnesty, RA 12001 reforms how property is valued. It adopts market value as the single real property valuation base for real property-related taxes, and requires properties to be appraised based on prevailing market values in the locality in conformity with the Philippine Valuation Standards. As local Schedules of Market Values are updated under the new system, assessed values — and therefore amilyar bills — can move. Owners should read reassessment notices carefully, since there are limited periods within which to contest an assessment.

Frequently Asked Questions

How much is real property tax in the Philippines? The basic rate is up to 1% of assessed value in a province and up to 2% in a city or a municipality within Metro Manila, plus an additional 1% for the Special Education Fund. It is computed on the assessed value, not the market price.

When is amilyar due? It may be paid in full on or before January 31, or in four equal installments due on or before March 31, June 30, September 30, and December 31. Local governments may grant a discount of up to 20% for advance or prompt payment.

What happens if I do not pay my real property tax? Unpaid tax earns interest of 2% per month, capped at 36 months in total. The tax is a lien on the property, and the local government may levy on it and sell it at public auction, subject to the owner's right of redemption.

Is the real property tax amnesty still available? No. The amnesty on penalties, surcharges, and interests under Republic Act No. 12001 could only be availed within two years from the law's effectivity on July 5, 2024, so it closed on July 5, 2026. Some local governments run their own programs, so ask your treasurer.

This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.

If you are dealing with real property tax arrears, a reassessment, or a delinquency sale, our firm can advise you on your options. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.