Thursday, May 8, 2014

How to calculate your property taxes

Every homeowner is responsible for paying real estate taxes, namely the Real Property Tax (RPT) and the Special Education Fund Tax (SEFT).

In order to calculate Real Property Tax, you need the Fair Market Value (FMV) of the property, the Assessment Level (AL) and the Tax Rate of the RPT.

Real Property Tax

In order to calculate Real Property Tax, you need three figures. You need the Fair Market Value (FMV) of the property, which can be found on the Tax Declaration for your property, the Assessment Level (AL), which is fixed by the ordinances of the Sangguniang Panlalawigan, Sangguniang Panlunsod or the Sangguniang Bayan of municipalities within Metro Manila, and the Tax Rate of the RPT.

First, multiply the Fair Market Value by the Assessment Level to obtain the Assessed Value (AV) of your property. Next, multiply the resulting Assessed Value with the Tax Rate of the RPT.

For properties within Metro Manila, the tax rate should not exceed two percent of the Assessed Value of the property, whereas for other provinces and cities, the rate should not exceed one percent of the Assessed Value. 

Multiplying your Assessed Value with the right Tax Rate will give you the total amount due for your Real Property Tax

Special Education Fund Tax

The total Special Education Fund Tax amount can be calculated by using the same formula, the Assessed Value multiplied by the Tax Rate. However, the only difference is that the Tax Rate for the SEFT is pegged at one percent for all property locations.

For more information on tax rates and guidelines, visit the NREA website


Previous Next

Share
Email

Top Articles

Small spaces: Decor t...
Need a little more leg space in your living room? Use scaled-down sofas, arrang...
Home decor: Tips to c...
Even if you’re on a tight budget, it’s possible to completely transform a room ...
Buying Lots in Valenz...
Our partner is buying several properties in areas in Valenzuela, Quezon City, B...
Tips for designing th...
With imagination and clever design, you can encourage your family to spend more...
Buying Lots in QC, Va...
Our partner is buying several properties in Quezon City, as well as the cities ...
More property news...