Amilyar Explained: How to Compute and Pay Real Property Tax (2026)

Amilyar explained: how to compute and pay real property tax in the Philippines (2026)

Every property owner in the Philippines owes amilyar, the everyday name for real property tax (RPT), and a surprising number quietly forget it. It is the annual tax you pay to your city or municipality for owning land, a building or a condo, and it does not go away if you ignore it. It just grows penalties, and in the worst case the local government can auction your property out from under you for unpaid taxes. Here is how amilyar is computed, when and where to pay, the discounts worth catching, and what happens if you let it slide.

What amilyar actually is

Amilyar is a local tax, collected by the City or Municipal Treasurer, on real property: the land, the buildings, and the permanent improvements on it. It funds local government services, and it is owed every year for as long as you own the property, separate from the one-time taxes you pay when you buy. If you own a condo, you pay it on your unit; if you own a house and lot, on both the land and the structure.

How amilyar is computed

The math runs in three steps, and the rates and levels are set locally, so treat the figures here as the framework rather than your exact bill.

1. Start with the Fair Market Value (FMV) of the property, as carried in the Tax Declaration at the Assessor's Office.
2. Apply the assessment level to get the Assessed Value. The assessment level is a fraction set by the Local Government Code and the LGU, and it is lower for homes than for commercial property, with residential property commonly assessed at around 20% of market value and commercial and industrial property much higher.
3. Apply the tax rate to the assessed value. The basic RPT rate is capped at 1% in provinces and 2% in cities and the municipalities of Metro Manila, and on top of that almost everyone pays an additional 1% Special Education Fund (SEF).

A worked example

Say a condo carries a fair market value of ₱3,000,000 and sits in a city. Assessed at a residential level of 20%, the assessed value is ₱600,000. The basic RPT at 2% is ₱12,000, plus the 1% SEF of ₱6,000, for a total of about ₱18,000 a year. Treat that as an illustration only, because the assessment level, the rate and any local adjustments vary by LGU. Your actual figure is on your tax declaration and your statement from the Treasurer.

When and where to pay

Amilyar is an annual tax, but most LGUs let you pay it in four quarterly installments instead of one lump, with the full-year payment usually due early in the year and the quarters falling at the end of each quarter. You pay at the City or Municipal Treasurer's Office that covers the property, and a growing number of LGUs now accept payment online or through partner channels. Bring or have ready your latest tax declaration and the previous official receipt.

The discounts worth catching, and the penalties to avoid

This is where paying attention pays off:

• Prompt-payment discount. Many LGUs grant a discount, often up to 20%, for paying the full year early or in advance. On a recurring bill, that adds up.
• Late penalties. Miss the deadline and interest accrues at 2% per month, capped at 72% over three years. A small bill ignored for years becomes a large one.
• Tax delinquency and auction. Leave it unpaid long enough and the LGU can declare the property delinquent and, after notices, sell it at public auction to recover the tax. This is rare for owners who pay attention, and devastating for those who do not.

What to check on your own bill

A few habits keep amilyar from biting:

• Verify the tax declaration. Make sure the property class, area and improvements on file are correct, since an over-stated value means an over-stated tax. You can contest an assessment you believe is wrong with the Assessor.
• Keep your receipts. You will need proof of payment when you sell or transfer, and a clearance that taxes are paid up is part of moving a title.
• Update it after a transfer. When you buy, the Tax Declaration should be moved into your name so the bills come to you, a step covered in our guide to transferring a land title.

Where amilyar fits in the bigger picture

Amilyar is one line in the running cost of owning, alongside association dues and utilities, and it is easy to overlook when you are focused on the purchase price. Our breakdown of the hidden costs of buying a condo and our wider guide to Philippine property taxes put it in context with everything else you will owe.

Pay it early for the discount, keep the receipts, and check the assessment is fair, and amilyar is a small, predictable cost rather than a problem. When you are budgeting for a purchase, factor a year of it in from the start, and browse the live listings with the full cost in view. This is general information, not tax advice; assessment levels, rates and discounts vary by local government, so confirm your exact figures with your City or Municipal Treasurer and Assessor.