Real Property Tax Deadline: Dates to Remember This 2022

Have you made your financial new year’s resolutions yet? Aside from saving big and investing smart, it’s wise to include settling payments early on your list. Generally speaking, you save more and avoid hassles when you sort out your financial duties ahead of time. For property owners, real property taxes are the top priority next to mortgage payments. If you want to get huge discounts and steer clear of tax problems this 2022, settle your dues early on. 

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Deadlines for 2022 Real Property Tax Payments

Remember, there are two options for paying real property tax: in full for the entire year or in quarterly installments. For the former, you must settle your obligation on or before January 31, 2022. As for the latter, these are the deadlines:

  • First quarter: On or before March 31, 2022
  • Second quarter: On or before June 30, 2022
  • Third quarter: On or before September 30, 2022
  • Fourth quarter: On or before December 31, 2022

Local government units offer a 10 to 20% discount on taxes when you pay ahead of the deadlines. On the flip side, late payments are subject to a 2% interest per unpaid amount. Failure to pay for 36 months or three years will incur a maximum of 72% penalty. 

If you haven’t been able to settle your taxes the past months, your local government unit (LGU) may be offering tax amnesty programs, which waive payment of penalties and interests. Pasay is among the Metro Manila cities that recently granted amnesty for non-payment of real property taxes. Property owners with or without notice of delinquency are covered in the program.

Payment of Real Property Taxes Amid the Pandemic

Because of the current health crisis, the LGUs have launched online portals for the payment of taxes. By logging on to these digital platforms, you can safely and conveniently settle your dues. These are the websites for different LGUs in the country:

Metro Manila:

Luzon:

Visayas-Mindanao:

In case you want to go the traditional route of payment, you can still settle your taxes at the Treasurer’s Office of your LGU. Be mindful of the health protocols when going to government offices. Have your contact tracing QR code ready to avoid hassles entering public establishments.

Fast Facts about PH Real Property Taxes

If you’re a new property owner, you’re probably wondering how much you’ll be paying for taxes. Here are some of the things you need to know about the actual fees:

Tax rates: They vary depending on the location of your property. In Metro Manila, the rate is 2% of the assessed value. In the provinces, it’s 1%. 

Tax computation: The formula for real property tax is RPT rate multiplied by the assessed value (AV). The AV is the fair market value of the property multiplied by the assessment level, which is determined by the ordinances. In this blog, you can see a sample computation.

Other tax obligations: Aside from the basic real property tax, you also have to settle the tax for the Special Education Fund. This is an additional 1% tax on real property, in which the proceeds go to the local schools. Take note that if your property becomes idle, it may be subject to an additional charge on the assessed value, a maximum of 5%. If you’re not using the property as a residence, turn it into a profit-generating asset, a rental, for instance.

Smart property owners are good taxpayers. Start the new year right by committing to paying your dues early. You’ll be able to score huge discounts and avoid financial troubles, helping you make 2022 a truly prosperous year. 

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