What is exact and what is an estimate
- Exact: the 6% capital gains tax, the ₱15-per-₱1,000 documentary stamp tax with fractions rounded up, the highest-value tax base, and the ₱100 + ₱30 eCAR fees.
- Maximum, not exact: the local transfer tax uses the Local Government Code ceiling (0.75% for cities, 0.5% for provinces) unless you enter your LGU's rate, and it is applied to the same highest-value base as the BIR taxes. The Code itself speaks of the price or the fair market value, whichever is higher; each LGU's revenue code fixes the exact base and rate.
- Not computed: the Registry of Deeds registration fee. The LRA issued a new schedule (LRA Circular 03-2026, 13 October 2026). It takes effect 15 days after it is both published in a newspaper of general circulation and filed (three certified true copies) with the UP Law Center, and we could not confirm either date, so the fees that apply to your registration are not yet certain. The fee is based on the property's assessed value, never the zonal value (LRA Circular 06-2025). Enter it if the Registry of Deeds gave you an assessment.
- Not covered: sales of ordinary assets (taxed through withholding and possibly VAT instead), real property tax arrears, notarial fees and brokers' commissions.
Results are planning estimates. The official BIR return, your employer's payroll and the BIR's own computation govern; rounding and inputs not captured here (for example mid-year rate changes or unusual benefits) can change the figure.
Quick answer
On the sale of land or a house and lot held as a capital asset, the seller owes a 6% capital gains tax on the highest of the selling price, the BIR zonal value and the assessor's fair market value, filed on Form 1706 within 30 days of notarization. Add documentary stamp tax of ₱15 per ₱1,000 (Form 2000-OT, by the 5th of the next month), local transfer tax of up to 0.75% in cities or 0.5% in provinces, ₱130 in eCAR fees, and the Registry of Deeds fee.
Key points
- The tax base is the highest of the selling price, the zonal value and the assessor's value, not simply the price in the deed.
- Capital gains tax on a capital asset is due within 30 days of notarization; documentary stamp tax is due earlier, by the 5th day of the following month (RMC 75-2026).
- The local transfer tax is due within 60 days of the deed, at up to 0.75% in cities and 0.5% in provinces (LGC Secs. 135 and 151).
- The eCAR costs ₱100 plus a ₱30 documentary stamp, takes about 7 working days after payment, and no longer expires.
- A seller who uses the full proceeds for a new principal residence within 18 months can be exempt from the capital gains tax on that capital asset, once every 10 years.
Data used in this calculator
In force 2026Planning estimate- Capital gains tax
- 6% final tax, NIRC Sec. 24(B)(4) for individuals (renumbered by RA 12214) and Sec. 27(D)(5) for corporations
- Tax base
- Highest of selling price, BIR zonal value and assessor's value, until the RA 12001 Schedule of Market Values applies (RMC 75-2026)
- Documentary stamp tax
- ₱15 per ₱1,000 or fraction, NIRC Sec. 196
- Transfer tax
- Up to 0.5% (provinces) or 0.75% (cities) of the higher of price or fair market value, within 60 days (LGC Secs. 135, 151)
- eCAR
- ₱100 certification fee + ₱30 documentary stamp; 7 working days (Citizen's Charter 2026)
- Registry of Deeds fee
- LRA schedule on the assessed value (Circular 06-2025); not computed here
Last verified against the issuances on November 11, 2026. Report an error on this page.
Taxes and fees on a land sale
| Item | Rate | Base | Form or office | Deadline |
|---|---|---|---|---|
| Capital gains tax | 6% | Highest of price, zonal value, assessor's value | BIR Form 1706 | 30 days from notarization |
| Documentary stamp tax | ₱15 per ₱1,000 or fraction | Higher of price and fair market value | BIR Form 2000-OT | 5th day of the following month |
| eCAR | ₱100 + ₱30 DST | Per eCAR | RDO where the property is | After both taxes are paid |
| Local transfer tax | Up to 0.75% (cities), 0.5% (provinces) | Higher of price and fair market value | City or provincial treasurer | 60 days from the deed |
| Registration fee | LRA schedule (new schedule in Circular 03-2026, once in force) | Assessed value, never the zonal value (LRA Circular 06-2025) | Registry of Deeds | When registering |
| Real property tax (yearly) | Up to 2% (cities) or 1% (provinces) of assessed value + 1% SEF | Assessed value | Treasurer | Clearance needed for the transfer |
For real property held as a capital asset. Sources: NIRC Secs. 24(B)(4), 196 as amended; RMC 75-2026; LGC (RA 7160) Secs. 135, 151, 233, 235; BIR Citizen's Charter 2026. As of November 2026.
Worked example: price below the zonal value
- 1
Compare the three values
A lot held as a capital asset. Price ₱2,500,000; zonal value ₱3,000,000; assessor's value ₱1,800,000. The tax base is ₱3,000,000.
- 2
Capital gains tax: 6% × ₱3,000,000 = ₱180,000
Form 1706, within 30 days of notarization.
- 3
Documentary stamp tax: 3,000 × ₱15 = ₱45,000
Form 2000-OT, by the 5th of the next month.
- 4
Transfer tax: 0.75% × ₱3,000,000 = ₱22,500
Metro Manila city at the legal maximum; your city may charge less.
- 5
eCAR fees: ₱100 + ₱30 = ₱130
Paid at the RDO where the property is located.
Total excluding the Registry of Deeds fee
₱247,630
About 9.9% of the ₱2,500,000 price. Add the Registry of Deeds fee and notarial fees.
| Scenario | Tax base | Capital gains tax | DST | Transfer tax | Total (excl. RD fee) |
|---|---|---|---|---|---|
| ₱1.5M lot, province | ₱1,500,000 | ₱90,000 | ₱22,500 | ₱7,500 | ₱120,130 |
| ₱3M house and lot, city | ₱3,000,000 | ₱180,000 | ₱45,000 | ₱22,500 | ₱247,630 |
| ₱6M house and lot, city | ₱6,500,000 | ₱390,000 | ₱97,500 | ₱48,750 | ₱536,380 |
| ₱10M condominium, city | ₱10,000,000 | ₱600,000 | ₱150,000 | ₱75,000 | ₱825,130 |
Illustrative capital asset sales; transfer tax at the legal maximum for the location; eCAR fees of ₱130 included in the total. Computed with the calculator above.
Who pays on a capital asset sale: capital gains tax and other costs
The law names who is liable; the deed of sale can shift the cost. The 'usual arrangement' column is common practice, not a rule: agree it in writing before signing.
| Cost | Liable under the law | Usual arrangement |
|---|---|---|
| Capital gains tax | Seller (it taxes the seller's presumed gain) | Seller |
| Documentary stamp tax | Any party who makes, signs or accepts the deed (NIRC Sec. 173) | Often the buyer; negotiable |
| Local transfer tax | Seller, donor or transferor (LGC Sec. 135(b)) | Often the buyer by agreement |
| Registry of Deeds fee | The party registering | Buyer |
| Unpaid real property tax | The owner for the years owned | Seller settles arrears before the sale |
Sale of a capital asset. Sources: NIRC Secs. 24(B)(4), 173; LGC Sec. 135. Customs vary; the deed of absolute sale governs between the parties.
Who pays what on a ₱3M and a ₱6M sale (usual arrangement)
- Seller: capital gains tax
- Buyer: DST, transfer tax, eCAR
| Bar | Seller: capital gains tax | Buyer: DST, transfer tax, eCAR |
|---|---|---|
| ₱3M sale: seller ₱180,000, buyer ₱67,630 | ₱180,000 | ₱67,630 |
| ₱6M sale: seller ₱390,000, buyer ₱146,380 | ₱390,000 | ₱146,380 |
The four offices, in order
From signed deed to new title
1BIR: file Form 1706 and Form 2000-OT, pay
Online or at any authorized bank; computation sheet from the RDO where the property is.
2BIR: claim the eCAR
About 7 working days after payment; the eCAR no longer expires.
3Treasurer: pay the transfer tax
Within 60 days of the deed; get the real property tax clearance.
4Registry of Deeds: register the deed
Cancels the old title and issues a new one in the buyer's name.
5Assessor: transfer the tax declaration
New tax declaration in the buyer's name.
| Step | Time | Notes |
|---|---|---|
| ONETT computation sheet | 3 working days (simple), 7 (complex) | Clock starts after complete documents |
| eCAR release | 7 working days | After proof of payment |
| Transfer tax | Same day at most treasurers | Within 60 days of the deed |
| Registry of Deeds and assessor | Varies by office | Ask each office for its processing time |
Source: BIR Citizen's Charter 2026 and RMC 75-2026.
Documents the BIR needs for the eCAR
| Document | Notes | Where to get it |
|---|---|---|
| TIN of sellers and buyers (TIN verification slip) | Spouse's TIN only if the property is conjugal or the spouse is a party | BIR / ORUS |
| Notarized deed of absolute sale | 1 original + 2 photocopies | Notary |
| Certified true copy of the tax declaration (land and improvement) | At or nearest the date of sale | Assessor |
| Certified true copy of the title (OCT/TCT/CCT) | — | Registry of Deeds |
| Certificate of no improvement | If the lot has no building | Assessor |
| SPA or secretary's certificate | If someone signs for a party | Notary; corporation |
| Apostille or consular certification | If the deed or SPA was signed abroad | Foreign authority / embassy |
| Location plan or vicinity map | If the location cannot be fixed from the tax declaration | Geodetic engineer / LGU |
Source: BIR checklist (Annex D-1, RMO 12-2025) as updated by RMC 75-2026 and RMO 17-2026; your RDO issues the binding checklist. Need a deed? Use our deed of absolute sale template.
Capital asset forms: BIR Form 1706 vs 1707 vs 2000-OT
| Form | For | Rate | Deadline |
|---|---|---|---|
| 1706 (January 2018) | Capital gains on real property held as a capital asset | 6% of the highest value | 30 days from notarization |
| 1707 (April 2021) | Capital gains on shares not traded on an exchange | 15% of the net gain (individuals and, since CMEPA, corporations) | 30 days after each sale |
| 2000-OT (January 2018) | Documentary stamp tax on one-time transactions | ₱15 per ₱1,000 for real property | 5th day of the following month |
| 1606 | Withholding on the sale of real property that is an ordinary asset | See the expanded withholding rates | Cash sale: 10th day of the month after notarization; instalment sales follow special rules (RMC 75-2026) |
1706 and 1707 apply to capital assets; 1606 to ordinary assets. Sources: Form 1706 guidelines; Form 1707 guidelines; RMC 75-2026; RA 12214 for the 15% corporate rate on unlisted shares.
Capital asset or ordinary asset?
Capital gains tax applies only to real property that is a capital asset: property not used in a trade or business, such as a family home or an inherited lot held by an individual. Property used in business or held by a real estate dealer is an ordinary asset; its sale is taxed through creditable withholding (Form 1606) and the regular income tax, and possibly VAT, not the 6% capital gains tax. If you are unsure, ask the RDO before filing.
Principal residence exemption
| Condition | Detail |
|---|---|
| Who | An individual selling their principal residence |
| Use of proceeds | Fully used to buy or build a new principal residence within 18 calendar months |
| Frequency | Once every 10 years |
| Notice | Notify the Commissioner within 30 days of the sale |
| Security | Sworn letter of intent, escrow agreement, then proof of the new purchase or construction |
Source: NIRC Sec. 24(D)(2) of the 1997 Tax Code (the provision's new number after RA 12214 was not confirmed) and the BIR checklist. Unused proceeds are taxed proportionally.
Late payment penalties
Paying the capital gains tax on a capital asset after the 30 days costs a 25% surcharge, 12% interest a year and a compromise from the BIR schedule; micro and small taxpayers get a 10% surcharge and 6% interest under RR 6-2024. Remember the documentary stamp tax falls due first. Estimate the amount with the BIR penalty calculator.
Common mistakes
| Mistake | What happens | Do this instead |
|---|---|---|
| Paying on the price when the zonal value is higher | Deficiency assessment; eCAR held | Use the highest of the three values |
| Counting 30 days from the signing, not the notarization | Late filing if notarization came first | Count from the notarization date |
| Paying DST together with the CGT on day 30 | DST late: it was due on the 5th of the next month | Calendar both deadlines |
| Missing the 30-day notice for the principal residence exemption | Exemption lost; full CGT due | Notify the BIR and set up the escrow at once |
| Ignoring RA 12001 | Surprises once the new Schedule of Market Values applies | Check whether your locality's new schedule is in force |
Buod sa Tagalog
Sa pagbebenta ng lupa o bahay na hindi ginagamit sa negosyo, 6% na capital gains tax ang babayaran sa pinakamataas sa tatlo: presyo sa deed, zonal value ng BIR, o halaga sa tax declaration. Ifinafile ito sa Form 1706 sa loob ng 30 araw mula sa notaryo. Dagdag pa ang documentary stamp tax (₱15 kada ₱1,000, bago mag-ika-5 ng susunod na buwan), transfer tax hanggang 0.75% sa lungsod, at ₱130 para sa eCAR.
Frequently asked questions
+How much is capital gains tax on a house and lot in the Philippines?
6% of the highest of the selling price, the BIR zonal value and the assessor's fair market value, for property held as a capital asset. On a ₱3,000,000 base the tax is ₱180,000. It is a final tax filed on BIR Form 1706.
+Who pays capital gains tax, the seller or the buyer?
For real property held as a capital asset, the tax is on the seller's presumed gain, so the seller is liable and usually pays it. The deed of sale can provide otherwise; if the buyer pays it under the deed, RMC 75-2026 says the tax is not added to the selling price when computing the base.
+What is the deadline for paying capital gains tax?
For a capital asset, within 30 days from the notarization of the deed of absolute sale, under RMC 75-2026. For an instalment sale where instalment payment of the tax is allowed, within 30 days of the first down payment and of each later instalment. The documentary stamp tax is due earlier, by the 5th of the next month.
+Is capital gains tax based on the selling price or the zonal value?
For a capital asset, on whichever is highest among the selling price, the BIR zonal value and the assessor's fair market value. Under RA 12001, the DOF-approved Schedule of Market Values will replace zonal values once a locality's schedule takes effect; until then zonal values still apply.
+How long does it take to get an eCAR?
Under the BIR Citizen's Charter 2026, the ONETT computation takes 3 working days for simple cases (7 for complex ones), and the eCAR is released 7 working days after payment and complete documents. eCARs no longer expire. Registry of Deeds processing comes after that.
+How much is the transfer tax and who pays it?
Up to 0.5% of the higher of the price or fair market value in provinces and up to 0.75% in cities, under the Local Government Code; each LGU's revenue code sets the exact rate. The law makes the seller liable, though buyers often pay it by agreement. It is due within 60 days of the deed.
+What is the difference between BIR Form 1706 and 1707?
Form 1706 is for the 6% capital gains tax on real property held as a capital asset. Form 1707 is for the 15% capital gains tax on shares not traded on a stock exchange. Both are due within 30 days of the sale.
+Am I exempt from capital gains tax if I sell my principal residence?
Your home is a capital asset, so you can be exempt if you use the full proceeds to buy or build a new principal residence within 18 calendar months, notify the BIR within 30 days, and have not used the exemption in the past 10 years. The BIR requires an escrow arrangement until you prove the new purchase.
+Can I file Form 1706 online or at any RDO?
Yes, for the capital gains tax on a capital asset. Under the Ease of Paying Taxes Act, returns are filed electronically and taxes paid online or at any authorized agent bank. The computation sheet and the eCAR, however, are processed by the RDO with jurisdiction over the property's location (RMC 75-2026).
+How much does it cost in total to transfer a land title?
For a capital asset, add 6% capital gains tax, about 1.5% documentary stamp tax, up to 0.75% transfer tax, ₱130 in eCAR fees and the Registry of Deeds fee, all computed on the highest value. On a ₱3,000,000 base that is about ₱247,600 before the Registry of Deeds and notarial fees.
Sources and references
- RMC 75-2026 — ONETT FAQs: tax base, deadlines, eCAR fees and validity, filing channels (checked November 12, 2026)
- RA 12214 (CMEPA) — renumbering of the capital gains tax provisions; 15% on unlisted shares (checked November 12, 2026)
- Local Government Code (RA 7160) — transfer tax (Secs. 135, 151), real property tax (Sec. 233) (checked November 12, 2026)
- RA 12001 (Real Property Valuation and Assessment Reform Act) — Schedule of Market Values replacing zonal values (checked November 12, 2026)
- BIR Form 1706 guidelines (January 2018) — capital gains tax on real property (checked November 12, 2026)
- BIR Form 1707 guidelines (April 2021) — capital gains tax on unlisted shares (checked November 12, 2026)
- BIR Citizen's Charter 2026 — eCAR processing times and fees (checked November 12, 2026)
- BIR checklist Annex D-1 — documents for the sale of real property (checked November 12, 2026)
- LRA frequently asked questions — documents the Registry of Deeds requires (checked November 12, 2026)
- LRA Circular 03-2026 (13 October 2026) — new schedule of Registry of Deeds fees; in force 15 days after newspaper publication and filing of three certified true copies with the UP Law Center (checked November 12, 2026)
- LRA Circular 06-2025 (6 October 2025) — registration fee based on the assessed value, never the zonal value (checked November 12, 2026)
Related calculators and guides
Author and editorial review
Deepak Middha, Chartered Accountant
Chartered Accountant with 18 years in hedge funds; writes and maintains sulat.ph. Every rate, ceiling, deadline and fee on this page is taken from the National Internal Revenue Code or a BIR issuance and was checked against that source on November 12, 2026. Where a figure could not be confirmed officially, the page says so.
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