Owning a home is one of the biggest accomplishments a Filipino could have. Having your own house will offer your family safety and security. However, owning a home comes with the responsibility of the government by paying the amilyar tax yearly. While the amilyar is an important tax, many Filipinos have a limited understanding of it. In this article, we will discuss what amilyar is, why you should pay, how to compute it, and how to pay it.
Amilyar or Real Property Tax (RPT) is a tax real property owners must pay annually. The word amilyar is derived from the Spanish word amillaramiento, which means assessment of a tax. During the Spanish colonization, the datus who ruled their barangays collected this tax for security. In modern times, the amilyar is imposed by the Local Government Unit (LGU) where your real property is located under sections 197 to 283 of the Local Government Code. According to Article 415 of the Civil Code, real property or immovable property covers land, buildings, roads, and constructions of all kinds adhered to soil, trees, plants, growing fruits, statues, machinery, and many other things attached to the land. Failure to pay the amilyar will result in the auction of your property.
Failure to pay on time will result in 2% of the unpaid amilyar amount per month with a maximum of 72% for 3 years (36 months). After 3 years, the LGU may auction your property.
To compute the amount of amilyar , you would need to follow this formula: Real Property Tax = Rate x Assessed Value. Your tax rate would depend if your property is in or outside Metro Manila.
Did you know that you can have a discount when paying your amilyar ? Most LGUs offer a 5%-20% discount for taxpayers who pay early or make advanced payments. Not only will enjoy a discount, but you will also avoid long queues and delinquencies.
There are two ways you can use to pay your amilyar: in-person and online.
To pay in person, you can visit your LGU’s Treasurer’s Office or through their designated centers. Here’s a step-by-step process on how you can make your payments through the aforementioned channels:
While not available nationwide, different cities in Metro Manila support online payments. The process differs per city, but each has its designated website for the payment. It would be best to check with your LGU and ask for the online payment process.
While one of the most important taxes in the country, there is a gap in understanding what an amilyar is. Using this article as a guide, you will have an idea what it is, when are the deadlines, how to calculate your amilyar , and how to pay .
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