How each charge is computed
Four separate government charges arise when a titled property changes hands in the Philippines. Three are set by national or local statute; the fourth follows an administrative fee schedule. Every tax is computed on the selling price or the fair market value, whichever is higher — the fair market value being the higher of the BIR zonal value and the assessor's fair market value.
Capital Gains Tax — 6%
Under Section 24(D)(1) of the National Internal Revenue Code, a final tax of six percent is imposed on the gain presumed realised from the sale of real property classified as a capital asset, based on the gross selling price or current fair market value, whichever is higher. It is the seller's liability by law, though the deed of sale may shift it to the buyer. It must be filed and paid within 30 days of the sale.
Documentary Stamp Tax — 1.5%
Under Section 196 of the Tax Code, as amended by the TRAIN Law (RA 10963), the documentary stamp tax on a deed of sale of real property is fifteen pesos for every one thousand pesos, or fractional part, of the consideration or fair market value, whichever is higher — an effective rate of 1.5%. Because the law charges each fractional thousand as a full thousand, the base is rounded up to the next ₱1,000. It is due by the fifth day of the month after the deed is notarised.
Local Transfer Tax — up to 0.5% or 0.75%
Under Section 135 of the Local Government Code, a province may tax the transfer of real property at up to one-half of one percent (0.5%) of the consideration or fair market value, whichever is higher. Under Section 151, a city or a municipality within Metro Manila may levy up to 50% more — so up to 0.75%. The exact rate is fixed by local ordinance, and the seller, donor, or transferor must pay it within 60 days of executing the deed.
Registration Fee — Registry of Deeds
The fee to register the transfer and issue a new Transfer Certificate of Title follows the graduated schedule of the Land Registration Authority (LRA Circular No. 61, as adjusted). It rises with the value of the property; above ₱1,700,000 the fee is ₱8,796 plus ₱90 for every ₱20,000, or fraction, in excess of ₱1,700,000.
A note on accuracy. This tool computes the statutory taxes precisely and estimates the registration fee from the published LRA schedule. The real total can still move with your LGU's exact transfer-tax rate, minor Registry of Deeds charges, and the classification of the property. For a binding computation and to handle the filing itself, speak to a lawyer.