What is the zonal value?
The zonal value is the Commissioner's estimate of fair market value per square metre for real property in a zone. Zones are as narrow as a single street, subdivision or condominium. The values are set after consultation with private and public appraisers, published, and issued per RDO through a Department of Finance order.
| Value | Who sets it | Where you find it | Used for |
|---|---|---|---|
| BIR zonal value | Commissioner of Internal Revenue, through a DOF order | bir.gov.ph/zonal-values, per RDO | National taxes: capital gains, DST, estate, donor's |
| Assessor's fair market value | Provincial or city assessor (schedule of market values) | The tax declaration | Real property tax; also compared for national taxes |
| Selling price | The parties | The deed of sale | Compared with the two values above |
| Schedule of Market Values under RA 12001 | Assessor, reviewed by BLGF, certified by the Secretary of Finance | LGU publication once certified | Will replace zonal values and the assessor's schedule |
Sources: NIRC Sec. 6(E) as amended by RA 10963; RA 12001 Secs. 3, 15, 16, 18.
Why zonal value matters: the tax base is the highest value
“provided the same is higher than (1) the fair market value as shown in the schedule of values of the provincial or city assessor and (2) the gross selling price”
Three values for the same 200 sq.m lot
| Item | Value in pesos |
|---|---|
| BIR zonal value (₱15,000 × 200 sq.m) | ₱3,000,000 |
| Selling price in the deed | ₱2,500,000 |
| Assessor's value (tax declaration) | ₱1,800,000 |
| Tax | Base that uses the zonal value | BIR form |
|---|---|---|
| Capital gains tax (6%) | Highest of price, zonal, assessor's value | 1706 |
| Documentary stamp tax | Higher of price and fair market value | 2000-OT |
| Donor's tax (6%) | Fair market value of donated land | 1800 |
| Estate tax (6%) | Fair market value at death | 1801 |
Capital gains tax applies to real property held as a capital asset. Sources: NIRC Secs. 24(B)(4), 88, 102, 196 as amended; RMC 75-2026.
How to look up the zonal value on bir.gov.ph
Finding the zonal value of a property
1Get the property details
From the title or tax declaration: city or municipality, barangay, street or subdivision, area, classification.
2Identify the RDO
The Revenue District Office covering that location. Large cities can span several RDOs.
3Open bir.gov.ph/zonal-values
Choose the Revenue Region, then the RDO file (a PDF).
4Check the order and revision
Page 1 shows the Department Order number, date and revision.
Street or subdivision listed
Read the ₱ per sq.m for the classification code
RR residential, CR commercial, RC condominium, and so on.
Not listed
Use the 'all other streets' or interior-lot line
Or ask the RDO for a zonal value certification.
5Multiply by the area and compare
Compare with the assessor's value and the price: the highest is the tax base.
| Code | Classification | Code | Classification |
|---|---|---|---|
| RR | Residential regular | CR | Commercial regular |
| RC | Residential condominium | CC | Commercial condominium |
| I | Industrial | GP | General purpose |
| X | Institutional | PS | Parking slot |
| CL | Cemetery lot | A1–A50 | Agricultural types |
Legend from DO 055-2024 (RDO 57). Codes can differ slightly between RDO files; use the legend in your RDO's file. If the location cannot be fixed from the tax declaration, the BIR asks for a location plan or vicinity map.
Worked example: tax on a sale
- 1
Zonal value: ₱15,000 × 200 sq.m = ₱3,000,000
From the RDO file, classification RR.
- 2
Assessor's value: ₱1,800,000
From the latest tax declaration.
- 3
Selling price: ₱2,500,000
From the deed of absolute sale.
- 4
Tax base: the highest, ₱3,000,000
The zonal value wins.
- 5
Capital gains tax: 6% × ₱3,000,000 = ₱180,000
Form 1706, within 30 days of notarization.
- 6
Documentary stamp tax: ₱15 × 3,000 = ₱45,000
Form 2000-OT, within 5 days after the end of the month of notarization.
BIR taxes on this sale
₱225,000
Local transfer tax and registration fees are extra. Use the title transfer cost calculator for the full cost.
RA 12001: zonal values are being replaced
The Real Property Valuation and Assessment Reform Act (RA 12001, approved 13 June 2024) repealed the zonal value section of the Tax Code and makes the DOF-certified Schedule of Market Values the single valuation base. Its transitory provisions keep zonal values in force until each locality's new schedule takes effect. The two-year target for the first new schedules passed around July 2026, but as of November 2026 the BIR still applies zonal values "until … replaced" (RMC 75-2026). We could not confirm any locality whose new schedule is already in force, so check with the RDO and the assessor.
13 June 2024
RA 12001 approved; Sec. 38(c) repeals NIRC Sec. 6(E), Sec. 31 keeps zonal values until replaced
About July 2026
Two-year target for the first Schedules of Market Values; the RPT amnesty under RA 12001 also closed
8 July 2026
RMC 75-2026: BIR still uses zonal values until replaced by the SMV
Pending
A locality's SMV takes effect after DOF certification and publication; then the BIR uses the higher of SMV or price
Common mistakes and consequences
| Mistake | Consequence | How to avoid it |
|---|---|---|
| Declaring a low price to cut the tax | BIR computes on the zonal value anyway; under-declaration can be a criminal case | Expect the highest value to apply; declare the true price |
| Using a neighbouring RDO's file | Wrong value; the RDO recomputes and the eCAR is delayed | Confirm which RDO covers the barangay |
| Wrong classification | Commercial rates are often far higher | Use the classification on the tax declaration |
| Using an old revision | Under- or over-payment | Check the order date on page 1 of the current file |
| Forgetting improvements | Building value left out | Include the house or building per the tax declaration |
Buod sa Tagalog
Ang zonal value ay ang presyo kada metro kwadrado na itinakda ng BIR para sa bawat kalye o lugar. Sa pagbebenta ng lupa, ang buwis ay kinukuwenta sa pinakamataas sa tatlo: ang presyo sa deed, ang zonal value, o ang halaga sa tax declaration. Libre itong makikita sa bir.gov.ph/zonal-values. Papalitan ito ng bagong Schedule of Market Values sa ilalim ng RA 12001, pero ginagamit pa rin habang wala pa ang bago.
Frequently asked questions
+What is the zonal value of a property?
It is the fair market value per square metre that the BIR assigns to real property in a specific zone, such as a street, subdivision or condominium, by classification. It is issued per Revenue District Office through a Department of Finance order and used to compute national taxes on sales, donations and estates.
+Is zonal value the same as fair market value?
Not quite. For BIR purposes, fair market value means the higher of the zonal value and the assessor's value on the tax declaration. The tax base for capital gains tax (on a capital asset) and DST is the highest of that fair market value and the selling price. The assessor's value alone is used for real property tax.
+How do I find the zonal value of my lot?
Go to bir.gov.ph/zonal-values, choose your Revenue Region and RDO, and open its PDF file. Find your city, barangay and street or subdivision, read the peso-per-square-metre figure for your classification, and multiply by the area. If your street is not listed, use the 'all other streets' line or ask the RDO.
+Why is the BIR computing tax on a higher amount than my selling price?
Because the law taxes a sale of real property on the highest of the selling price, the zonal value and the assessor's value. If the zonal value is higher than your price, the BIR uses the zonal value. This prevents under-declaring the price in the deed.
+How often are zonal values updated?
The Tax Code called for review every three years, but in practice revisions are irregular and differ by RDO; each file shows its revision number and date. Under RA 12001, zonal values will be replaced by the Schedule of Market Values, updated every three years after the first update.
+Are zonal values still used after RA 12001?
Yes, for now. RA 12001 repealed the zonal value provision but keeps existing zonal values in force until the DOF-certified Schedule of Market Values for the locality takes effect. RMC 75-2026, issued in July 2026, still directs the BIR to use zonal values until they are replaced.
+Can I get a certified zonal value from the BIR?
Yes. The RDO with jurisdiction over the property can issue a zonal value certification, which banks and courts sometimes ask for. The fee was not confirmed in an official schedule, so ask the RDO.
+Does zonal value affect estate and donor's tax?
Yes. Real property in an estate or a donation is valued at fair market value at the date of death or donation, which for BIR purposes is the higher of the zonal value and the assessor's value. See our estate tax and donor's tax pages for the full computation.
Sources and references
- BIR zonal values — official lookup by Revenue Region and RDO (checked November 11, 2026)
- RA 10963 (TRAIN Law), Sec. 4 amending NIRC Sec. 6(E) — zonal value and fair market value definition (checked November 11, 2026)
- RA 12001 (Real Property Valuation and Assessment Reform Act) — Schedule of Market Values; transitory rules for zonal values (checked November 11, 2026)
- RMC 75-2026 — ONETT FAQs: tax base, classification, zonal values until replaced (checked November 11, 2026)
- Department Order No. 055-2024 (RDO 57) — example zonal value order, legend and the 'higher of' rule (checked November 11, 2026)
- BIR checklist Annex D-1 — documents for a sale of real property, including location plan (checked November 11, 2026)
Related tools 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 11, 2026. Where a figure could not be confirmed officially, the page says so.
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