Tax Declaration

By HivePropertyHub.com

Tax Declaration

The Tax Declaration is one of the most important documents in Philippine real estate.

Whether you're buying, selling, or simply trying to understand your property better, knowing how a Tax Declaration works will help you make smarter and more confident decisions.

The more you know, the less you risk.

Issued byLGU Assessor's Office
Used forReal Property Tax assessment
WebsiteHivePropertyHub.com
What is it?

What is a Tax Declaration?

A Tax Declaration is a document issued by your Local Government Unit's Assessor's Office.

It reflects the assessed value of a property for the purpose of computing Real Property Tax.

It is an important government record used for property assessment and taxation.

What it contains

What is in a Tax Declaration?

01.

Name of taxpayer

The person or entity recorded for tax purposes.

02.

Property description

Details about the land, building, condominium, or improvement.

03.

Exact location

The address or location of the property being assessed.

04.

Classification

Residential, commercial, agricultural, or another property classification.

05.

Market and assessed value

The values used by the local government for tax computation.

06.

Tax amount and improvements

Details used to compute Real Property Tax, plus any declared structures.

Why you need it

Why is a Tax Declaration important?

It is required in many real estate transactions and administrative processes.

  • Needed during the sale of a property
  • Used for due diligence and property verification
  • Required when transferring ownership from seller to buyer
  • Requested by banks for loans and appraisals
  • Serves as the basis for Real Property Tax payments
Types

Two types of Tax Declaration

01.

For the land

Lists information about the land itself — area, location, classification, market value, and assessed value.

02.

For the improvements

Covers structures built on the land, such as houses, buildings, townhouses, or other improvements.

A complete property will usually have both: one Tax Declaration for the land and another for the improvements.

Real Property Tax

Computing Real Property Tax

Real Property Tax, or RPT, is computed using the assessed value stated in the Tax Declaration.

  • Cities typically apply a 2% tax rate
  • Provinces typically apply a 1% tax rate
  • An additional 1% is added for the Special Education Fund
  • The yearly tax amount is based on the assessed value multiplied by the applicable rates
Payment

Paying Real Property Tax

RPT is paid at the local Treasurer's Office and becomes due every January 1.

  • Quarterly payments are usually allowed
  • Many LGUs provide discounts for early full payments
  • Bring the previous year's Official Receipt or the Tax Declaration
  • Keep all RPT receipts organized for future transactions, especially a property sale
Owner's copy

Obtaining an Owner's Copy

When a property is transferred to a new owner, the Tax Declaration must also be updated to reflect the new taxpayer. Prepare the following:

  • New title
  • Notarized Deed of Sale
  • Certificate Authorizing Registration
  • Updated Real Property Tax receipts

After the documents are verified and accepted, the Assessor's Office issues a claim stub as proof that the transfer is being processed. The new Owner's Copy is typically released within 6 to 7 working days. If the owner is unavailable, a representative may claim it with a Special Power of Attorney.

Certified True Copy

Obtaining a Certified True Copy

A CTC of the Tax Declaration is often required for title transfer, property sale, and loan applications.

  • Photocopy of the Owner's Copy or the latest RPT receipt
  • Requester's name and valid ID
  • SPA, if a representative is making the request
  • Some LGUs may release Certified True Copies on the same day
Due diligence

Reviewing a Tax Declaration

Match the seller's name

Verify that the seller's name matches the Deed of Sale, the title, and their valid ID.

Check the description

Confirm that the property description matches both the title and the actual property.

Request both copies

Ask for the Owner's Copy and the Certified True Copy to confirm authenticity and completeness.

Review RPT receipts

Ensure the tax number matches the Tax Declaration and that no unpaid taxes remain.

Final thoughts

Knowledge is one of the most valuable investments you can make.

Sometimes it is even more important than the property itself.

The more you understand how real estate works, the better protected you become as an owner, seller, or buyer.

Always invest in yourself.

Stay curious. Keep learning. Explore more resources like these, or post your property at ManilaOpenHouse.com.

Next Topic? Tell us.