Transfer Tax Calculator Philippines [Fast & Accurate]

“Simplify Your Property Tax Calculations in Seconds!”

Property Transfer Tax Calculator

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Welcome to the Transfer Tax Calculator Philippines, a tool designed to help you accurately compute the taxes involved when transferring ownership of real property in the Philippines.

Whether you’re buying, selling, or donating property, this calculator simplifies the process by providing a clear breakdown of the Transfer Tax (TT), Documentary Stamp Tax (DST), and Capital Gains Tax (CGT).

Understanding these taxes is crucial for ensuring compliance with Philippine tax laws and avoiding penalties.

How to Use the Transfer Tax Calculator

The Transfer Tax Calculator is user-friendly, allowing you to compute the total taxes involved in a property transfer with just a few inputs. Here’s how to use it:

  1. Total Consideration: Enter the agreed-upon price for the property transfer (e.g., the selling price). Example: For a property sold for ₱1,800,000, enter “1800000”.
  2. Fair Market Value: Enter the property’s value as assessed by the BIR or local government. Example: If the fair market value is ₱1,800,000, enter “1800000”.
  3. Transfer Tax Rate: Input the applicable transfer tax rate for your location. Common rates include:
    • 0.5% (0.005) for provinces
    • 0.75% (0.0075) for Metro Manila
    • 0.60% (0.006) for areas like Santa Rosa, Laguna
  4. Example: For Santa Rosa, Laguna, enter “0.006”.
  5. Who Pays Transfer Tax?: Select whether the seller or buyer is responsible for paying the transfer tax. By default, it is set to the seller, but this can be changed based on your agreement.
  6. Calculate: Click the “Calculate” button to see the breakdown of taxes, including Transfer Tax, DST, CGT, and the total amounts payable by the buyer and seller.

How to Calculate Transfer Tax | Practical Example

Let’s walk through a real-world example to illustrate how the Transfer Tax calculation works.

Scenario:

You are selling a property in Santa Rosa, Laguna, with a total consideration and fair market value of ₱1,800,000. The transfer tax rate is 0.60% (0.006), and the seller pays the transfer tax.

Step-by-Step Calculation:

  1. Determine the Tax Base: The tax base is the higher of the total consideration or fair market value. Here, both are ₱1,800,000.
  2. Compute Transfer Tax: Transfer Tax = ₱1,800,000 × 0.006 = ₱10,800
  3. Compute DST: DST = ₱1,800,000 × 0.015 = ₱27,000 (paid by the buyer)
  4. Compute CGT: CGT = ₱1,800,000 × 0.06 = ₱108,000 (paid by the seller)
  5. Total Taxes:
    • Buyer’s Total: ₱27,000 (DST)
    • Seller’s Total: ₱10,800 (TT) + ₱108,000 (CGT) = ₱118,800

Using the Calculator: Enter Total Consideration: 1800000, Fair Market Value: 1800000, Transfer Tax Rate: 0.006, Who Pays: Seller, then click “Calculate”.

What is Transfer Tax in the Philippines?

Transfer Tax, often abbreviated as TT, is a local tax imposed on the sale, donation, barter, or any other mode of transferring ownership or title of real estate property in the Philippines.

It is paid to the local government unit (LGU) where the property is located. This tax is distinct from national taxes such as donor’s tax or estate tax, which are paid to the Bureau of Internal Revenue (BIR).

  • Legal Basis: Governed by Section 135 of the Local Government Code of 1991.
  • Tax Rates:
    • Up to 0.5% (0.005) of the total consideration or fair market value (whichever is higher) for provinces.
    • Up to 0.75% (0.0075) for cities and municipalities within Metro Manila.
    • Some LGUs outside Metro Manila, such as Santa Rosa, Laguna, use 0.60% (0.006).
  • Who Pays: Typically the seller (or transferor), but the buyer may agree to pay it as part of the transaction.

Transfer Tax ensures local governments receive revenue from property transactions and must be paid before the property title can be officially transferred.

Other Related Taxes

When transferring property in the Philippines, two additional taxes are typically involved:

  1. Documentary Stamp Tax (DST):
    • A national tax on documents used in real estate transactions, such as deeds of sale.
    • Rate: 1.5% of the total consideration or fair market value (whichever is higher).
    • Who Pays: Typically paid by the buyer.
  2. Capital Gains Tax (CGT):
    • A tax on gains from the sale of real property classified as a capital asset.
    • Rate: 6% of the gross selling price or fair market value (whichever is higher).
    • Who Pays: Paid by the seller.

These taxes, along with Transfer Tax, are computed by the calculator to provide a complete picture of the tax obligations involved in a property transfer.

Legal Requirements and Deadlines

  • Payment Deadline: Transfer Tax must be paid within 60 days from the execution of the deed or the decedent’s death (for inheritance).
  • Penalties for Late Payment:
    • Surcharge: Up to 25% of the tax amount.
    • Penalty: Up to 2% per month, maximum 36 months (72% total).
  • Where to Pay: Treasurer’s Office of the city or municipality where the property is located.
  • Required Documents:
    • Certificate Authorizing Registration (CAR) from the BIR.
    • Realty tax clearance from the Treasurer’s Office.
    • BIR official receipt for DST.
    • Certified true copy of the Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT).
    • Deed of Sale.
    • Latest tax declarations for land and improvements.

Additional Notes

  • Who Pays What:
    • Transfer Tax: Typically paid by the seller, but can be the buyer by agreement.
    • DST: Buyer.
    • CGT: Seller.
  • Dispute Resolution: File a written protest within 60 days of assessment. If denied, appeal to the court within 30 days.

Wrapping Up

The Transfer Tax Calculator Philippines is a valuable tool for anyone involved in property transactions.

It ensures accurate tax calculations and compliance with regulations. Consult a tax professional or local government office for specific guidance, as rates and requirements may vary by location.