If you give property or money away during your lifetime, the gift may be subject to donor's tax. Since the TRAIN law, the rate is a flat 6% — on the total gifts you make in a calendar year above a ₱250,000 annual exemption, and it no longer matters whether the person you gave to is a relative or a stranger.
Because the tax is cumulative for the year, this calculator asks what you have already given earlier in the same year, so it works out the tax on this gift correctly — and shows every step with the law behind it.
Your gift
The fair market value of what you are giving, less any debt or burden the recipient agrees to assume. For land, FMV is the higher of the BIR zonal value and the assessor's market value.
Total of your earlier gifts since 1 January of the same year. Enter 0 if this is your first gift this year. The ₱250,000 exemption is annual and is shared across all your gifts in the year — it does not reset per gift.
How donor's tax works after TRAIN
Two features do most of the work:
- Flat 6%. The old law taxed gifts to relatives on a graduated 2–15% schedule and gifts to "strangers" at a flat 30%. TRAIN swept all of that away: one 6% rate for everyone, applied the same way regardless of your relationship to the recipient.
- ₱250,000 exemption, per year and cumulative. The first ₱250,000 of your total gifts in a calendar year is exempt. Splitting a large gift into several smaller ones in the same year does not multiply the exemption — the tax is computed on everything you have given cumulatively, and the exemption is used up once.
So the tax on a later gift depends on the earlier ones: the calculator adds this gift to your prior gifts for the year, taxes the cumulative total above ₱250,000 at 6%, and subtracts the tax already accounted for on the earlier gifts.
What "net gift" means, and what is exempt
Donor's tax is on the net gift — the value of the property less anything the recipient takes on, such as a mortgage they agree to pay. Some transfers are not taxed at all under NIRC §101: gifts to the national government or its agencies, and gifts to accredited non-stock, non-profit educational, charitable, religious, cultural, or social-welfare institutions (subject to the rule that not more than 30% is used for administration). Note too that donations between spouses during the marriage are generally void under the Family Code — a separate problem a deed cannot fix.
The legal basis
- NIRC §99(A), as amended by the TRAIN law (RA 10963) — "The tax for each calendar year shall be six percent (6%) computed on the basis of the total gifts in excess of Two hundred fifty thousand pesos (₱250,000) exempt gift made during the calendar year." The amendment also removed the separate, higher rate for gifts to strangers.
- NIRC §98–101 — who and what is covered, the meaning of a gift, and the transfers exempt from donor's tax (§101).
- NIRC §103(B) — the donor's tax return "shall be filed within thirty (30) days after the date the gift is made and the tax due thereon shall be paid at the time of filing."