Capital Gains Tax Calculator Philippines 2026

“Calculate Your Capital Gains Tax in Seconds – Simple, Fast, and Accurate!”

Welcome to the Philippines Capital Gains Tax Calculator, a tool designed to help you calculate the Capital Gains Tax (CGT) on the sale of real property or shares of stock in the Philippines.

Understanding and accurately calculating CGT is essential for compliance with tax laws and effective financial planning.

This calculator simplifies the process by allowing you to input relevant details about your transaction and instantly compute your tax liability.

How to Use the Capital Gains Tax Calculator

This calculator allows you to compute CGT for either real property or shares of stock. Follow these steps:

1. Select Asset Type:
   • Choose “Real Property (Capital Asset)” if you are selling land or buildings not used in business.
   • Choose “Shares of Stock (Not Traded)” if you are selling shares of a domestic corporation not listed on the stock exchange.
2. For Real Property:
   • Enter the Gross Selling Price (the total amount you are selling the property for).
   • Enter the Fair Market Value (FMV) as determined by the BIR.
   • Check the box if it is your Principal Residence and you plan to reinvest the proceeds in another principal residence within 18 months. If checked, CGT will be shown as 0 (assuming you meet the reinvestment condition).
3. For Shares of Stock:
   • Enter the Selling Price (the total amount you are selling the shares for).
   • Enter the Cost Basis (the original cost or acquisition price of the shares). Ensure the selling price is greater than or equal to the cost basis, as a capital loss (cost basis exceeding selling price) results in no CGT.
4. Calculate:
   • Click “Calculate” to see your Capital Gains Tax.
5. Reset:
   • Click “Reset” to clear the inputs and start over.

Note: Ensure you have accurate values for FMV (for real property) and cost basis (for shares), as these are critical for correct tax calculation. For real property, FMV can be obtained from the BIR’s zonal value listings or through an appraisal.

How to Calculate Capital Gains Tax (CGT) in the Philippines

Example 1: Real Property

Suppose you sell a property for ₱5,000,000, and the fair market value (FMV) is ₱4,800,000. It is not your principal residence.

• Gross Selling Price: ₱5,000,000
• Fair Market Value: ₱4,800,000
• Basis for CGT: max(₱5,000,000, ₱4,800,000) = ₱5,000,000
• CGT = ₱5,000,000 × 0.06 = ₱300,000

Result: CGT = ₱300,000

Example 2: Shares of Stock (Within ₱100,000 Net Gain)

Suppose you sell shares for ₱150,000, and your cost basis is ₱50,000.

• Selling Price: ₱150,000
• Cost Basis: ₱50,000
• Net Capital Gain: ₱150,000 – ₱50,000 = ₱100,000
• CGT = ₱100,000 × 0.05 = ₱5,000

Result: CGT = ₱5,000

Example 3: Shares of Stock (Exceeding ₱100,000 Net Gain)

Suppose you sell shares for ₱250,000, and your cost basis is ₱50,000.

• Selling Price: ₱250,000
• Cost Basis: ₱50,000
• Net Capital Gain: ₱250,000 – ₱50,000 = ₱200,000
• CGT = (₱100,000 × 0.05) + (₱200,000 – ₱100,000) × 0.10 = ₱5,000 + ₱10,000 = ₱15,000

Result: CGT = ₱15,000

What is Capital Gains Tax?

Capital Gains Tax (CGT) is a tax imposed on the profits realized from the sale of capital assets. In the Philippines, CGT primarily applies to two types of assets:

• Real Property: Land and buildings located in the Philippines, classified as capital assets (i.e., not used in trade or business).
• Shares of Stock: Shares in a domestic corporation that are not listed or traded on the local stock exchange.

Capital Gains Tax on Real Property

For the sale of real property classified as a capital asset, a final CGT of 6% is imposed.

This tax is based on the higher of the gross selling price or the current fair market value (FMV) as determined by the Bureau of Internal Revenue (BIR).

Importantly, this tax is calculated on presumed gains, meaning it applies regardless of whether you actually made a profit from the sale. The formula is:

CGT = max(Gross Selling Price, FMV) × 0.06

Key Points:

• Gross Selling Price: The total amount received from the sale of the property.
• Fair Market Value (FMV): The value determined by the BIR, often based on zonal values or appraised values.
• Exemptions: If the property sold is your principal residence and you reinvest the proceeds in another principal residence within 18 months from the date of sale, you may be exempt from CGT. However, you must comply with specific BIR requirements.
• Sales to the government or its agencies may have different tax treatments, and you should consult the BIR or a tax professional for such cases.

Capital Gains Tax on Shares of Stock

For shares of stock not traded on the stock exchange, CGT is imposed on the net capital gains realized from the sale. The tax rates are as follows:

• 5% on the first ₱100,000 of net capital gains.
• 10% on any amount exceeding ₱100,000.

The formula for CGT on shares is:

CGT =
if net gain ≤ 100,000: net gain × 0.05
if net gain > 100,000: (100,000 × 0.05) + (net gain – 100,000) × 0.10

Key Points:

• Net Capital Gain: The difference between the selling price and the cost basis (acquisition cost).
• If the cost basis exceeds the selling price, you have a capital loss, and no CGT is applicable. However, capital losses may be used to offset other capital gains or carried over to future years, though this is beyond the scope of this calculator.

Important Notes

• Real Property: CGT is based on presumed gains, so even if your actual gain is zero or negative, you still pay CGT based on the higher of the gross selling price or FMV, unless exempted (e.g., principal residence with reinvestment).
• Shares of Stock: CGT applies only to net capital gains. If your cost basis exceeds the selling price, you have a capital loss, and no CGT is due. However, capital losses may be used to offset other capital gains or carried over to future years, but this is not calculated here.
• Exemptions and Special Cases: For real property, exemptions may apply (e.g., principal residence with reinvestment). For shares, ensure they are not traded on the stock exchange; if they are, different tax rules apply.
• Accuracy: Always use the latest FMV from the BIR for real property transactions. For shares, ensure you have accurate records of your cost basis.
• Consult a Professional: This calculator is for informational purposes only. For complex transactions or specific questions, consult a qualified tax professional or refer to the latest issuances from the Bureau of Internal Revenue (BIR).

  Capital Gains Tax Rates Philippines 2026

  Under the TRAIN Law (Republic Act No. 10963), the Capital Gains Tax rates in the Philippines for 2026 are as follows:

  Asset Type	CGT Rate	Tax Base	BIR Form
  Real Property (Capital Asset)	6%	Higher of Gross Selling Price or Fair Market Value	BIR Form 1706
  Shares of Stock (Not Traded) — first ₱100,000 net gain	5%	Net Capital Gain	BIR Form 1707
  Shares of Stock (Not Traded) — net gain above ₱100,000	10%	Net Capital Gain above ₱100,000	BIR Form 1707
  Principal Residence (with reinvestment within 18 months)	0% (exempt)	N/A	BIR Form 1706

  BIR Form 1706 — Filing CGT on Real Property

  When selling real property in the Philippines, the seller must file BIR Form 1706 (Capital Gains Tax Return for Onerous Transfer of Real Property Classified as Capital Asset) and pay the corresponding CGT within 30 days from the date of sale or notarization of the deed of sale, whichever is earlier.

  The filing must be made at the Revenue District Office (RDO) that has jurisdiction over the location of the property. The CGT must be paid in full before the Bureau of Internal Revenue will issue the Certificate Authorizing Registration (CAR), which is required to transfer the title to the buyer.

  Documents Required for BIR Form 1706

  • Notarized Deed of Absolute Sale or Exchange
  • Certified True Copy of the Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
  • Certified True Copy of the latest Tax Declaration for real property and improvements
  • Location plan or vicinity map
  • Proof of payment of real property tax (Amilyar)
  • TIN of buyer and seller

  What is Zonal Value and Why Does It Matter?

  The BIR assigns a zonal value to every parcel of land in the Philippines. This is the BIR’s official estimate of the minimum market value of real property in a given area, updated periodically through Revenue Regulations.

  Zonal value matters for CGT because the tax is computed on the higher of the gross selling price or the fair market value — and fair market value is defined as whichever is higher between the BIR zonal value and the value declared by the provincial or city assessor (Tax Declaration value).

  In practice, this means that even if you sell a property below its zonal value, you still pay CGT based on the zonal value. You can check the BIR zonal values on the official BIR website or through your local Revenue District Office.

  Principal Residence Exemption — How It Works

  Under Section 24(D)(2) of the National Internal Revenue Code, the sale of a principal residence is exempt from CGT if the following conditions are met:

  • The proceeds must be fully utilized to acquire or construct a new principal residence.
  • The new residence must be acquired or constructed within 18 months from the date of sale.
  • The BIR must be notified within 30 days from the date of sale through a sworn declaration.
  • The exemption can only be availed of once every 10 years.
  • If only a portion of the proceeds is reinvested, the exemption applies proportionally — the remainder is taxed at 6%.

  Capital Gains Tax vs. Creditable Withholding Tax

  A common source of confusion is the difference between CGT and Creditable Withholding Tax (CWT) on real property transactions. The distinction depends on how the property is classified:

  Classification	Tax Applied	Rate	Who Pays
  Capital Asset (not used in business)	Capital Gains Tax (CGT)	6% of higher of SP or FMV	Seller
  Ordinary Asset (used in business or held for sale)	Creditable Withholding Tax (CWT)	1.5% to 6% depending on price	Buyer withholds, remits to BIR

  Most residential properties sold by individuals are classified as capital assets and subject to CGT. Commercial properties or properties held by real estate dealers are typically classified as ordinary assets and subject to CWT instead.

  Frequently Asked Questions

  Do I pay CGT if I sell my house in the Philippines?

  Yes, if the house is classified as a capital asset (not used for business), the sale is subject to 6% CGT based on the higher of the selling price or fair market value. However, if it is your principal residence and you reinvest the full proceeds in a new home within 18 months, you may be exempt from CGT.

  Who pays the Capital Gains Tax — buyer or seller?

  By law, the CGT on real property is the obligation of the seller. However, in practice, who actually pays it is often negotiated between buyer and seller in the Deed of Sale. Regardless of the arrangement, the BIR holds the seller legally responsible for filing and paying the CGT.

  How long do I have to pay CGT after selling a property?

  The CGT return (BIR Form 1706) must be filed and the tax paid within 30 days from the date of sale or from the date of notarization of the Deed of Sale, whichever comes first. Late payment is subject to surcharges, interest, and penalties.

  Is CGT the same as income tax on property sales?

  No. CGT is a final tax on the presumed gain from the sale of a capital asset. Unlike ordinary income tax, it is not based on actual profit — you pay 6% of the higher of the selling price or FMV regardless of whether you made a gain. The CGT replaces income tax on that transaction; you do not report the sale as ordinary income.

  What happens if I sell shares not listed on the PSE?

  The sale of shares of a domestic corporation not listed on the Philippine Stock Exchange (PSE) is subject to CGT at 5% on the first ₱100,000 of net capital gain and 10% on any amount exceeding ₱100,000. You must file BIR Form 1707 within 30 days after each sale or exchange of shares.

  For your monthly income tax deductions, use our BIR Income Tax Calculator Philippines 2026. For property transfers, also check our Documentary Stamp Tax Calculator.