Donor's Tax in the Philippines — Rate, ₱250,000 Threshold, Deadline

In short

Rate: 6% flat on total net gifts made during the calendar year in excess of ₱250,000.
Relative or stranger: Same rate since the TRAIN Law. The old 30% stranger rate is gone.
Return: BIR Form 1800.
Where: Since RA 11976 amended section 103, either electronically or manually — any authorised agent bank, an RDO through a Revenue Collection Officer, or an authorised tax software provider.
Deadline: Within 30 days after the date the gift is made.

How the tax works

Donor's tax is a tax on the privilege of transferring property gratuitously during your lifetime. Since the TRAIN Law (RA 10963) took effect, the computation is simple: add up the net gifts you have made during the calendar year, subtract ₱250,000, and pay 6% of the remainder.

Element	Rule
Rate	6%
Exempt amount	₱250,000 of total net gifts per calendar year
Cumulative	Yes — all gifts in the same calendar year are aggregated for the donor
Relative vs stranger	No distinction since TRAIN
Who files	The donor
Where to file and pay	Either electronically or manually, to any authorised agent bank, to the Revenue District Office through a Revenue Collection Officer, or through an authorised tax software provider — NIRC sec. 103 as amended by RA 11976, subject to the BIR's implementing issuances
Form	BIR Form 1800
Deadline	Within 30 days of the donation
Penalty for late filing	A surcharge and interest under secs. 248 and 249 plus any compromise penalty — ordinarily 25% and 12% per annum, but reduced to a 10% civil penalty and half the interest rate for a taxpayer qualifying as micro or small under RA 11976 and RR 6-2024

Legal basis: National Internal Revenue Code secs. 98–104 as amended by RA 10963 (TRAIN Law) and, for the filing and payment venue in sec. 103, by RA 11976 (Ease of Paying Taxes Act); Revenue Regulations No. 6-2024.

How the gift is valued

Real property — the higher of the BIR zonal value or the fair market value shown in the assessor's schedule of values.
Shares of stock not traded on an exchange — book value for common shares, par value for preferred, per BIR rules.
Listed shares — the closing price on the day of the donation, or the nearest trading day.
Personal property generally — fair market value at the time of the gift.

What is exempt

The first ₱250,000 of total net gifts in a calendar year.
Gifts made to or for the use of the National Government or any entity created by it that is not conducted for profit, or to any political subdivision.
Gifts in favour of an educational, charitable, religious, cultural or social welfare corporation, institution, accredited non-government organisation, trust or philanthropic organisation or research institution — provided not more than 30% of the gift is used for administration purposes.
Contributions to a candidate, political party or coalition duly reported to the Commission on Elections, which are governed by the Omnibus Election Code instead.

Legal basis: NIRC sec. 101 as amended. Encumbrances on the property assumed by the donee and diminutions specifically provided by the donor reduce the net gift.

Donor's tax versus estate tax

	Donor's tax	Estate tax
Rate	6%	6%
Base	Net gifts above ₱250,000 per year	Net estate after deductions
Key deductions	Encumbrances assumed by the donee; specified diminutions	Standard deduction of ₱5,000,000; family home up to ₱10,000,000; claims against the estate; and others
Timing	During the donor's lifetime	On death
Deadline	30 days from the gift	One year from death
Where you file and pay	Electronically or manually — any authorised agent bank, an RDO through a Revenue Collection Officer, or an authorised tax software provider (sec. 103, as amended by RA 11976)	The same channels, under sec. 90(D) as amended by RA 11976
Effect on the estate	Reduces it, but donations to compulsory heirs are collated	n/a

Legal basis: NIRC secs. 84–97 (estate tax) and 98–104 (donor's tax), as amended by RA 10963 and, on filing and payment, by RA 11976. Deduction amounts are those introduced by the TRAIN Law.

The comparison people expect — 'is it cheaper to donate now or leave it in the will?' — has no universal answer. Both rates are 6%, but the estate enjoys a ₱5,000,000 standard deduction and a family home deduction of up to ₱10,000,000, which for a modest estate can wipe out the tax entirely. Donations, by contrast, only get ₱250,000 a year. For many ordinary families, letting property pass by inheritance is the cheaper route — which is the opposite of what is often assumed.

Tax is also not the only variable. Donating now removes the property from the estate and gives the donee certainty during the donor's lifetime, which matters where a family expects a dispute. It also gives up control: a donation inter vivos is irrevocable once accepted, save on the narrow grounds the Civil Code allows. And donations to a compulsory heir are generally collated when the estate is eventually settled, so the arithmetic between siblings catches up regardless. Weigh certainty and control alongside the tax before deciding.

Filing and paying after the Ease of Paying Taxes Act

Older guides — and older BIR forms — say the donor's tax return is filed at the Revenue District Office where the donor is domiciled. RA 11976, the Ease of Paying Taxes Act, amended section 103 of the Tax Code and that is no longer the exclusive venue. The return is now filed and the tax paid, either electronically or manually, to any authorised agent bank, to the Revenue District Office through a Revenue Collection Officer, or through an authorised tax software provider. The same reform runs through the Code: section 90(D) on the estate tax return was amended in the same terms.

Two practical caveats. The BIR implements this through its own issuances and its electronic channels, so what is actually available to you on the day depends on the current implementation — check before you queue. And venue is not the same thing as the eCAR: the certificate authorising registration is still processed by the revenue district office with jurisdiction over the property, and that office will want the complete documentary requirements for the transfer regardless of where the return itself was filed and paid.

Donating something other than land

Most articles treat donor's tax as a real-property topic, but the tax applies to any gratuitous transfer, and the formalities and valuation differ by asset.

What is donated	Form required	How it is valued
Immovable property (land, house, unit)	Public instrument, with acceptance in the same or a separate public instrument (art. 749)	The higher of the BIR zonal value or the assessor's fair market value
Movable property worth more than ₱5,000	Both the donation and the acceptance in writing, otherwise void (art. 748)	Fair market value at the time of the gift
Movable property worth ₱5,000 or less	May be oral, with simultaneous delivery	Fair market value
Cash	Writing above ₱5,000; a deed of donation is the usual practice	Face amount
Shares not traded on an exchange	Deed of donation plus the corporate secretary's recording of the transfer	Book value for common shares; par value for preferred, per BIR rules
Listed shares	Deed of donation plus the broker's transfer	Closing price on the date of the gift, or the nearest trading day
A motor vehicle	Notarised deed of donation, then LTO transfer	Fair market value; the LTO and BIR will look at the acquisition cost and depreciation

The exempt donees are worth knowing too. Gifts to the National Government or its non-profit instrumentalities and political subdivisions are exempt, as are gifts to educational, charitable, religious, cultural or social welfare corporations, accredited NGOs, trusts, philanthropic organisations and research institutions — but only where not more than 30% of the gift is used for administration purposes. Political contributions duly reported to the COMELEC are governed by election law rather than donor's tax.

Worked examples

The arithmetic is simple once you see it done. The exemption is per donor, per calendar year, across all donees — which is what most people get wrong.

Scenario	Total net gifts in the year	Taxable base	Donor's tax
A parent gives one child ₱200,000 in cash	₱200,000	₱0	₱0
A parent gives three children ₱150,000 each	₱450,000	₱200,000	₱12,000
A parent donates a lot with a zonal value of ₱1,500,000	₱1,500,000	₱1,250,000	₱75,000
The same lot, plus ₱300,000 cash later that year	₱1,800,000	₱1,550,000	₱93,000
The lot donated in December, the cash the following January	₱1,500,000 and ₱300,000, in separate years	₱1,250,000 and ₱50,000	₱75,000 and ₱3,000
A donation to a non-relative of ₱1,000,000	₱1,000,000	₱750,000	₱45,000

Illustrative only, ignoring deductions for encumbrances assumed by the donee. Note the last two rows: the rate does not change for a stranger since the TRAIN Law, and spreading gifts across calendar years is a legitimate way to use the exemption twice.

Filing, step by step

1
Notarise the deed of donation with the acceptance in it
The 30-day clock runs from the date of the donation.
2
Get TINs for both parties
The donee needs one too, even if they have never filed a return.
3
Prepare the documents
Notarised deed, certified true copy of the title, latest tax declaration, certificate of no improvement or the improvement's declaration, and the parties' IDs and TINs.
4
File BIR Form 1800 and pay
Within 30 days, filed and paid either electronically or manually — any authorised agent bank, an RDO through a Revenue Collection Officer, or an authorised tax software provider (NIRC sec. 103 as amended by RA 11976). The donor's domicile RDO is no longer the exclusive venue.
5
Apply for the eCAR
The electronic Certificate Authorizing Registration is what the Register of Deeds requires. Processing time varies by RDO.
6
Pay the local transfer tax and register
At the LGU treasurer, then the Register of Deeds, then update the tax declaration at the assessor.

Donations between spouses, and to a common-law partner

Article 87 of the Family Code voids every donation between spouses during the marriage, except moderate gifts on the occasion of a family rejoicing — and it applies equally to persons living together as husband and wife without a valid marriage. This catches people who assume that transferring a property to a spouse is a private family matter.

The rule exists to stop one spouse from being pressured into stripping themselves of property, and to prevent the marriage from being used to defeat creditors. In practice it means a deed of donation between spouses is void and cannot be registered, and a donation to a live-in partner is exposed to the same objection. Where property genuinely needs to move between spouses, the route is a change or liquidation of the property regime, which is a court matter — take advice.

Common mistakes

Treating the ₱250,000 exemption as per donee rather than per donor per calendar year.
Missing the 30-day deadline because everyone assumed it ran from registration rather than from the deed.
Papering a gift as a sale to avoid donor's tax — a simulated sale is void and the tax exposure does not disappear.
Forgetting that the donee also needs a TIN before the eCAR can issue.
Donating a conjugal property with only one spouse signing.
Ignoring collation and legitime, and creating a family dispute that outlives the tax saving.

Frequently asked questions

+How much is donor's tax in the Philippines in 2026?

6% of total net gifts made during the calendar year in excess of ₱250,000, under the TRAIN Law. The rate is the same whether the donee is a relative or a stranger.

+When is the donor's tax return due?

BIR Form 1800 must be filed and the tax paid within 30 days after the date the gift is made. For real property that is the date of the notarised deed of donation.

+Is the ₱250,000 exemption per donee?

No. It applies to the donor's total net gifts for the calendar year, across all donees. Gifts to three children in the same year are aggregated against the single ₱250,000.

+Who pays the donor's tax — the donor or the donee?

The donor is the taxpayer under the law. The parties can agree that the donee will shoulder it economically, and that is often written into the deed, but the BIR looks to the donor.

+Is donating cheaper than inheriting?

Often not. Both are taxed at 6%, but the estate gets a ₱5,000,000 standard deduction and a family home deduction of up to ₱10,000,000, while donations only get ₱250,000 per year. For a modest estate, inheritance is frequently the cheaper route.

+What happens if I file late?

A surcharge and interest on the tax due under sections 248 and 249 of the Tax Code, plus a compromise penalty — ordinarily 25% and 12% per annum. If the donor qualifies as a micro or small taxpayer under RA 11976, Revenue Regulations No. 6-2024 reduces that to a 10% civil penalty, interest at half the rate, and a halved compromise penalty. Either way the eCAR cannot issue until the tax is settled, so the transfer stalls until you pay.

+Where do I file the donor's tax return now?

Section 103 of the Tax Code, as amended by RA 11976 (the Ease of Paying Taxes Act), provides that the return is filed and the tax paid either electronically or manually — through any authorised agent bank, through the Revenue District Office by way of a Revenue Collection Officer, or through an authorised tax software provider. The older rule that pointed only to the RDO of the donor's domicile no longer states the exclusive venue. What has not changed is that the eCAR is processed by the RDO with jurisdiction over the property.

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