Thursday, May 8, 2014
Every homeowner is responsible for paying real estate taxes, namely the Real Property Tax (RPT) and the Special Education Fund Tax (SEFT).
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.