Capital gains tax calculator
Estimate the capital gains tax (CGT) on the sale of real property held as a capital asset. Under the TRAIN law it's a flat 6% — free to check, no sign-up.
Your numbers
CGT is 6% of the higher of the gross selling price, the BIR zonal value, or the assessor's fair market value — enter whichever is highest.
Selling or buying? Start with someone verified
Every broker and agent on lumingon is checked against the PRC roll, and every pre-selling project can be checked against the DHSUD License-to-Sell lists. The tax is the easy part — the deal is safer when the people in it are real.
Find a verified brokerWhat else changes hands at closing
Estimate the local piece with the transfer tax calculator, and work out your monthly amortization with the loan calculator.
A worked example
You sell a condo in Taguig for ₱3,000,000. The BIR zonal value for that building is ₱3,400,000, and the assessor's fair market value on the tax declaration is ₱2,800,000. The taxable base is the highest of the three — the zonal value — so the tax is worked out on ₱3,400,000, not on what you were actually paid.
This is why the zonal value matters more than the asking price: it is the floor the BIR taxes from. A licensed broker prices a home knowing the zonal value, and puts the split of these costs in the deed of sale before anyone signs — find a PRC-verified broker.
Selling your home? You may not owe CGT at all
The sale of your principal residence — the home you actually live in — can be fully exempt from the 6% under Section 24(D)(2) of the Tax Code, if you meet every one of these conditions:
- The entire proceeds are used to buy or build a new principal residence within 18 months of the sale.
- You notify the BIR, within 30 days of the sale, that you intend to claim the exemption.
- You have not used the exemption in the last 10 years.
- The 6% is placed in escrow with an authorised bank until you show the BIR the proceeds were used as promised — then it is released to you.
Use only part of the proceeds and only that part of the gain is exempt; the rest is taxed. The cost basis of the old home carries over to the new one. The conditions are strict and the clock starts at the notarised sale — confirm your own case with the BIR.
Planning the next home inside that 18-month window? Every listing on lumingon is posted by a broker or agent checked against the PRC roll, so the search for the replacement home starts from verified ground.
Capital asset or ordinary asset — which tax applies?
The 6% CGT applies only when the property is a capital asset — typically a home, a lot or a condo sold by someone who is not in the business of selling property. If the seller is a developer or a real estate dealer, or the property is used in their trade or business, it is an ordinary asset: the sale is subject to regular income tax and creditable withholding tax instead, and to VAT above the threshold. Different forms, different rates, different paperwork.
Buying pre-selling or from a developer? The seller's registration tells you which regime you are in. Check the project against the DHSUD License to Sell registry and the company in the developers registry — both free, both on lumingon.
Late? What a missed deadline costs
CGT is due within 30 days of the notarised deed of sale. File or pay after that and the Tax Code adds, on top of the tax itself:
- A 25% surcharge on the amount due (50% where the BIR finds wilful neglect or a false return).
- Interest at 12% a year — double the legal rate, under the TRAIN law — from the due date until the day you pay.
- A compromise penalty under the BIR's schedule.
On the ₱204,000 example above, paying three months late adds about ₱51,000 in surcharge and ₱6,120 in interest before any compromise penalty — roughly ₱57,000 for missing a date. And until the tax is settled the BIR will not issue the Certificate Authorizing Registration, so the title cannot move to the buyer either way.
How to file and pay — BIR Form 1706
- Notarise the deed of sale. The 30-day clock starts here.
- Get the values. The BIR zonal value for the property's location (published by the BIR for each revenue district) and the assessor's fair market value from the tax declaration. Your taxable base is the highest of these and the selling price.
- File BIR Form 1706 with the Revenue District Office that covers the property — not the seller's home RDO — within 30 days of notarisation. Buyer and seller both need a TIN.
- Pay the CGT at an authorised agent bank of that RDO, or through the BIR's electronic payment channels.
- File and pay the documentary stamp tax (BIR Form 2000-OT) — due on the 5th day of the month after the deed was notarised.
- Secure the eCAR — the electronic Certificate Authorizing Registration. The Registry of Deeds will not transfer the title without it.
- Pay the local transfer tax at the city or municipal treasurer, then register the deed at the Registry of Deeds for the new title.
Most of this is the seller's side of the table, and it is the part a licensed broker handles every week. Buying without one? The due-diligence checklist has the same steps from the buyer's side.
Frequently asked questions
How much is capital gains tax on real estate in the Philippines?
A flat 6% under the TRAIN law, applied to the higher of the gross selling price, the BIR zonal value, or the assessor's fair market value — regardless of whether you actually made a gain on the sale.
Who pays the capital gains tax — buyer or seller?
By law and custom the seller pays CGT, though parties sometimes negotiate otherwise in the deed of sale. The buyer customarily shoulders the transfer tax, registration fees and documentary stamp tax unless agreed differently.
When is capital gains tax due?
Within 30 days of the notarized sale, filed with the BIR (Form 1706). Paying late adds surcharges and interest, and you cannot transfer the title without the BIR's Certificate Authorizing Registration (CAR).
What other taxes and fees come with a sale?
Documentary stamp tax of 1.5% of the same taxable base, local transfer tax of up to 0.50% (provinces) or 0.75% (cities), registration fees on a graduated schedule, and notarial fees. The sale of a principal residence can be CGT-exempt if the proceeds are fully used to buy a new principal residence within 18 months, subject to BIR conditions.
Is the sale of my home exempt from capital gains tax?
It can be. Selling your principal residence is exempt from the 6% if the entire proceeds go into buying or building a new principal residence within 18 months, you notify the BIR within 30 days of the sale, and you have not claimed the exemption in the last 10 years. The 6% sits in escrow with an authorised bank until the BIR confirms the proceeds were used; use only part and only that part is exempt.
What is the penalty for late payment of capital gains tax in the Philippines?
A 25% surcharge on the tax due (50% for wilful neglect or a false return), plus interest at 12% a year from the due date until paid, plus a compromise penalty under the BIR schedule. The BIR also withholds the Certificate Authorizing Registration until the tax is settled, so the title cannot transfer.
Do developers pay capital gains tax?
Generally no. Property sold by a developer or real estate dealer, or used in a business, is an ordinary asset — subject to regular income tax and creditable withholding tax (and VAT above the threshold) rather than the 6% CGT. Check the seller in the DHSUD License to Sell and developers registries to see which regime applies.
Where do I find the BIR zonal value?
The BIR publishes zonal values for each revenue district — check the BIR's zonal valuation listings for the property's location, or ask the RDO that covers it. The assessor's fair market value is printed on the tax declaration. Your taxable base is the highest of the zonal value, the assessor's value and the selling price.
Before any money moves, verify
Run the due-diligence checklist, check the project's DHSUD License to Sell, and deal only with a PRC-verified broker or agent — all free, right here.
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