Estate Tax Calculator Philippines 2026

“Simplify Your Estate Tax Planning Today!”

How to Use the Estate Tax Calculator

To calculate the estate tax for an estate in the Philippines, please provide the values for the estate assets and deductions below. All values should be entered in Philippine Pesos (₱).

• Estate Assets:
  • Real Property Value (₱)
  • Personal Property Value (₱)
  • Intangible Property Value (₱)
• Deductions:
  • Family Home Value (₱, max ₱10M)
  • Funeral Expenses (₱)
  • Debts & Other Deductions (₱)

Once you have entered the required values, click “Calculate Tax” to view the results. The calculator will compute the gross estate, total deductions, net estate, and the applicable estate tax.

How is Estate Tax Calculated in the Philippines?

The estate tax calculation involves several key steps:

1. Gross Estate:
   • This includes all properties owned by the deceased at the time of death.
   • Examples of properties included in the gross estate:
     • Real Property: Land and buildings.
     • Personal Property: Vehicles, jewelry, and other tangible assets.
     • Intangible Property: Stocks, bonds, and other financial assets.
2. Deductions:
   • Certain expenses and liabilities can be deducted from the gross estate to arrive at the net estate. Allowable deductions include:
     • Standard Deduction: A fixed amount of ₱5,000,000.
     • Family Home Deduction: Up to ₱10,000,000 for the value of the family home.
     • Funeral Expenses: Actual funeral expenses, but not exceeding 5% of the gross estate.
     • Debts and Other Claims: Amounts owed by the deceased at the time of death, such as loans or mortgages.
3. Net Estate:
   • This is the gross estate minus the total allowable deductions.
   • If the total deductions exceed the gross estate, the net estate is zero.
4. Estate Tax:
   • The estate tax is calculated as 6% of the net estate.

Practical Example

Let’s walk through an example to illustrate how the estate tax is calculated.

Suppose the deceased owned the following assets:

• Real property: ₱10,000,000
• Personal property: ₱2,000,000
• Intangible property: ₱1,500,000

Step 1: Calculate Gross Estate

• Gross Estate = Real Property + Personal Property + Intangible Property
• Gross Estate = ₱10,000,000 + ₱2,000,000 + ₱1,500,000 = ₱13,500,000

Now, let’s consider the deductions:

• Standard Deduction: ₱5,000,000
• Family Home Value: ₱5,000,000 (assuming this is the value entered)
• Funeral Expenses: ₱200,000 (actual expenses; 5% of gross estate = 5% of ₱13,500,000 = ₱675,000, so ₱200,000 is allowed)
• Debts: ₱1,000,000

Step 2: Calculate Total Deductions

• Total Deductions = Standard Deduction + Family Home Deduction + Funeral Expenses + Debts
• Total Deductions = ₱5,000,000 + ₱5,000,000 + ₱200,000 + ₱1,000,000 = ₱11,200,000

Step 3: Calculate Net Estate

• Net Estate = Gross Estate – Total Deductions
• Net Estate = ₱13,500,000 – ₱11,200,000 = ₱2,300,000

Step 4: Calculate Estate Tax

• Estate Tax = 6% of Net Estate
• Estate Tax = 6% of ₱2,300,000 = ₱138,000

Thus, the estate tax for this example would be ₱138,000.

Additional Notes

• Family Home Deduction: The family home deduction is limited to a maximum of ₱10,000,000. If the value of the family home exceeds this amount, only up to ₱10,000,000 can be deducted.
• Funeral Expenses: These are capped at 5% of the gross estate. If the actual funeral expenses exceed this limit, only the allowable amount (up to 5%) can be deducted.
• Standard Deduction: This is a fixed deduction of ₱5,000,000 and applies to all estates.
• Debts and Other Claims: These must be valid and substantiated claims against the estate.

What is the Estate Tax?

Estate tax is a tax imposed on the transfer of property from a deceased person to their heirs.

In the Philippines, under the Tax Reform for Acceleration and Inclusion (TRAIN) Law enacted in 2018, the estate tax is calculated at a flat rate of 6% on the net estate.

This means that after determining the total value of the deceased’s assets (gross estate) and subtracting allowable deductions, the remaining amount (net estate) is taxed at 6%.

Estate tax is an important consideration for heirs and executors as it must be paid before the estate can be fully distributed. Proper calculation ensures compliance with Philippine tax laws and helps avoid penalties.

Disclaimer

This calculator provides an estimate based on the TRAIN Law (6% tax rate, ₱5M standard deduction, ₱10M family home exemption). Results are for informational purposes only.

Please consult a qualified tax professional or the Bureau of Internal Revenue (BIR) for precise calculations and to ensure compliance with current tax regulations.

Estate Tax Rates and Key Figures Philippines 2026

Under the TRAIN Law (Republic Act No. 10963), the estate tax in the Philippines is a flat rate of 6% on the net estate. Here is a summary of the key figures for 2026:

BIR Form 1801 — Filing the Estate Tax Return

The estate tax return must be filed using BIR Form 1801 within one year from the date of death of the decedent. This is a significantly longer filing window than other taxes, giving the heirs time to gather assets and documents.

The return must be filed at the Revenue District Office (RDO) that has jurisdiction over the domicile of the deceased at the time of death. If the deceased had no legal residence in the Philippines, the return is filed at RDO No. 39 in South Quezon City.

Documents Required for BIR Form 1801

• Certified true copy of the Death Certificate
• TIN of the deceased and all heirs
• Certified true copy of the Transfer Certificate of Title (TCT) for real properties
• Certified true copy of the latest Tax Declaration for real property
• Proof of valuation of shares of stock (Audited Financial Statements)
• Bank statements or passbooks of the deceased
• Proof of claimed deductions (receipts for funeral expenses, loan documents for debts)
• Deed of Extra-Judicial Settlement or Court Order of Partition (if applicable)

Estate Tax Amnesty Philippines — What You Need to Know

The Philippines has offered estate tax amnesty programs that allowed heirs to settle unpaid estate taxes on estates of decedents who died on or before December 31, 2017. Under Republic Act No. 11213 (Tax Amnesty Act) and its extension under RA 11569, qualified estates could pay at a reduced rate of 6% based on the decedent’s total net undeclared estate, with a minimum floor of ₱5,000.

The amnesty period has expired, but many Filipino families still have unsettled estates from before 2018. If you are dealing with an estate from a decedent who died before December 31, 2017, consult a tax professional or the BIR directly to understand your current options and obligations.

What Happens if Estate Tax is Not Paid?

Failure to file and pay estate tax on time has serious consequences for heirs in the Philippines:

• Surcharge: 25% of the unpaid tax for late filing, or 50% in case of fraud or willful neglect.
• Interest: 12% per annum on the unpaid tax from the deadline until the date of payment.
• Compromise penalty: Additional administrative penalties based on the amount of tax due.
• Title cannot be transferred: The BIR will not issue the Certificate Authorizing Registration (CAR) until estate tax is fully paid — meaning heirs cannot legally transfer or sell the inherited property.

Extrajudicial Settlement vs. Court Settlement

Filipino heirs have two main options for settling an estate:

Estate tax must be paid regardless of which settlement method is used. The BIR requires the estate tax to be settled before it issues the CAR needed to transfer property titles to the heirs.

Frequently Asked Questions

How much is the estate tax in the Philippines in 2026?

The estate tax rate in the Philippines is a flat 6% of the net estate under the TRAIN Law. The net estate is computed by subtracting all allowable deductions (standard deduction of ₱5M, family home deduction of up to ₱10M, funeral expenses, and debts) from the gross estate.

Do I need to pay estate tax if the estate is small?

If the net estate is zero or negative after applying all deductions, no estate tax is due. With the ₱5,000,000 standard deduction alone, estates with a gross value below ₱5,000,000 typically owe no estate tax. However, you are still required to file BIR Form 1801 even if no tax is due.

Can the estate tax deadline be extended?

Yes. The BIR Commissioner may grant an extension of up to 30 days for filing if the estate is settled extrajudicially. In meritorious cases (such as when the gross estate consists primarily of registered or titled property), the extension may be longer. A written request must be submitted before the original deadline.

Can heirs sell inherited property before paying estate tax?

Technically no — the BIR will not issue the Certificate Authorizing Registration (CAR) needed to transfer the title until estate tax is fully paid. Without the CAR, the property cannot be legally sold or transferred to a buyer. In practice, some transactions are structured so that the buyer pays the estate tax as part of the deal, but this must be agreed upon explicitly.

Is the family home always deductible from the estate?

The family home deduction applies only if the property was the actual family home of the deceased — meaning the place where the family habitually resides. The deduction is limited to ₱10,000,000. If the deceased owned multiple properties, only one qualifies as the family home for this deduction.

For property transfer taxes, also use our Documentary Stamp Tax Calculator and our Transfer Tax Calculator Philippines.