Capital Gains Tax Calculator Philippines
CGT on real property is a flat 6% of the highest of the selling price, BIR zonal value, or assessor's FMV — a tax on the presumed gain, so it applies even if you sold at a loss. Unlisted shares pay 15% on the actual net gain; PSE-listed shares pay a 0.1% stock transaction tax instead (CMEPA, since July 1, 2025).
Selling or transferring a property?
The three-way tax base: which value wins
The single most important number in a Philippine property sale is the tax base. Both the 6% capital gains tax and the documentary stamp tax are computed on it, and it is the highest of three figures, never simply the price you agreed on.
- 1. Gross selling price (the amount in the deed of sale)
- 2. BIR zonal value (₱ per sqm × lot area)
- 3. Tax declaration FMV (assessor's fair market value)
- tax base = the largest of the three
Underpricing the deed to save on tax rarely works, because if the zonal value or the FMV is higher, the BIR taxes that instead. The calculator above auto-fills the zonal value from the barangay picker and highlights which of the three set your base.
Who pays what, by default
| Item | Rate / basis | Default payer | Form / deadline |
|---|---|---|---|
| Capital gains tax | 6% × base | Seller | Form 1706, 30 days from notarization |
| Documentary stamp tax | ₱15 per ₱1,000 (~1.5%) | Buyer | Form 2000-OT, 5th of the next month |
| Local transfer tax | ≤ 0.5% province / ≤ 0.75% city | Buyer | LGU treasurer, ~60 days |
| Registration fee | LRA graduated schedule (est.) | Buyer | Registry of Deeds |
| Broker commission | ~5% of price (negotiable) | Seller | Per engagement |
| Notarial fee | ~1% of price (negotiable) | Varies | On notarization |
These are conventions, not law. The deed of sale can assign every line differently, which is why the calculator lets you switch between standard, seller-pays-all, and buyer-pays-all and shows both the seller's net proceeds and the buyer's total cash-out.
The principal residence exemption
Selling your own home and buying another? Section 24(D)(2) can zero out the 6%, but only if all of these hold: you are a natural person selling your actual principal residence; you use the proceeds to buy or build a new principal residence within 18 months; you notify the BIR within 30 days of the sale by sworn declaration; and you have not used the exemption in the last 10 years. The 6% is placed in escrow and released once you prove the reinvestment.
If you reinvest only part of the proceeds, only the unutilized part is taxed, proportionately: taxable base = (unutilized ÷ gross selling price) × tax base, then 6% of that. For example, on a ₱6,500,000 sale where ₱4,000,000 is reinvested, ₱2,500,000 (about 38.5%) is unutilized, so the CGT is 6% of ₱2,500,000 = ₱150,000 instead of the full ₱390,000. Your historical cost basis also carries over to the new home.
Capital asset vs ordinary asset
The 6% CGT only applies to capital assets: property not used in a trade or business, sold by someone who is not a real estate dealer. If the property is an ordinary asset (a developer's inventory, property used in business, or a rental property of a business), it is not subject to CGT at all. Instead the sale is taxed under a creditable withholding tax of 1.5% to 6% depending on the seller and price, the gain forms part of regular income tax, and 12% VAT may apply if the seller is VAT-registered or selling in the course of business (subject to the periodically-adjusted VAT-exempt residential threshold). Getting this classification wrong is the most common source of wrong answers, so the calculator asks first and stops if the property is ordinary.
Penalties on late capital gains tax
The CGT return is due 30 days from the date of notarization of the deed of sale. Miss it and the BIR adds a 25% surcharge on the basic tax plus interest, 12% per year for sales from 2018 onward (20% per year for pre-2018 sales), running from the deadline until payment, plus a compromise penalty. Because the surcharge is a flat quarter of the tax and interest keeps compounding on the calendar, an old unpaid CGT can end up larger than the original tax. These figures are estimates; the deficiency-versus- delinquency interest mechanics under RR 21-2018 should be confirmed with the BIR for a specific sale.
Two worked examples
A ₱6,500,000 house-and-lot sale in a city, zonal value ₱5,800,000, FMV ₱3,200,000, with a 5% commission and 1% notarial fee, standard who-pays.
The gross selling price is highest, so the base is ₱6,500,000 and the CGT is ₱390,000. After CGT and commission the seller nets ₱5,785,000, while the buyer's all-in cash-out (with DST, transfer tax, registration, and notarial) is ₱6,741,646.
Same ₱6,500,000 sale, but it is the seller's principal residence and only ₱4,000,000 is reinvested in a new home within 18 months.
Because 38.5% of the proceeds is unutilized, only that share of the base is taxed: the CGT drops from ₱390,000 to ₱150,000, held in escrow pending proof of the reinvestment. Fully reinvest and the CGT would be ₱0.
Frequently Asked Questions
Philippine capital gains tax on property and shares, penalties, and CMEPA
Capital gains tax on real property classified as a capital asset is a flat 6%, computed on the HIGHEST of the gross selling price, the BIR zonal value, or the assessor's fair market value in the tax declaration. Because it is charged on that presumed value rather than the actual profit, you owe it even if you sold at a loss. The 6% is paid by the seller using BIR Form 1706 within 30 days of notarization.
By default the seller pays the 6% capital gains tax, while the buyer pays the documentary stamp tax (₱15 per ₱1,000), the local transfer tax, and the registration fee. This is only a convention, not a legal rule, so the parties can agree otherwise in the deed of sale. This calculator has who-pays presets (standard, seller-pays-all, buyer-pays-all) so you can model either arrangement.
On the price, not the gain. For real property, CGT is a flat 6% of the tax base (the highest of selling price, zonal value, or FMV), so it applies to the full presumed value regardless of whether you actually made a profit. This is a common misconception: the 'gain' in capital gains tax is presumed, not measured. Unlisted shares are the exception, where the 15% is charged on the actual net capital gain.
The base is the highest of three figures at the time of sale: the gross selling price stated in the deed, the BIR zonal value (₱ per square meter × lot area), and the fair market value in the latest tax declaration. Whichever is largest sets the base for the 6% CGT and for the documentary stamp tax. This calculator auto-fills the zonal value from the barangay picker and shows which of the three won the comparison.
It can be, under the principal residence exemption (Sec. 24(D)(2)). If a natural person sells their actual principal residence and uses the full proceeds to acquire or build a new principal residence within 18 months, notifies the BIR within 30 days, and has not used the exemption in the last 10 years, the 6% is held in escrow and released, so no CGT is due. If only part of the proceeds is reinvested, the unutilized portion is taxed proportionately. This calculator computes that partial split.
The CGT return (Form 1706) is due 30 days from the date of notarization. Pay late and the BIR adds a 25% surcharge on the basic tax plus interest of 12% per year (20% per year for sales before 2018), running from the deadline until you pay, plus a compromise penalty. On a large sale these penalties add up quickly, which is why old unpaid CGT can dwarf the original tax.
Two separate taxes are involved. First the estate must be settled and estate tax paid to get the eCAR that transfers the title to the heirs; without it, there is no valid sale. Then, when an heir later sells the inherited property as a capital asset, that sale pays the 6% capital gains tax on its own base. The heir's cost basis is generally the fair market value used for estate tax purposes. Compute the estate tax first with our estate tax calculator.
For sales of PSE-listed shares, the stock transaction tax is 0.1% of the gross selling price for trades on or after July 1, 2025, reduced from 0.6% by the CMEPA law (RA 12214). Trades before that date used the old 0.6% rate. The tax is withheld by your broker and there is no separate BIR filing, and no capital gains tax on the gain for listed shares.
Sales of shares that are not traded on the stock exchange pay a 15% capital gains tax on the net capital gain (selling price minus cost basis minus direct selling expenses), filed on BIR Form 1707 within 30 days of each sale. Since CMEPA took effect on July 1, 2025, this 15% covers unlisted shares of both domestic and foreign corporations. If you sell unlisted domestic shares below their fair market value, the shortfall may be treated as a donation subject to donor's tax.
Yes, in a genuine installment sale where the initial payments in the year of sale do not exceed 25% of the selling price. The CGT can then be paid in proportion to the collections received, under RR 12-2018 for ONETT installment transactions. If the initial payments exceed 25%, the full CGT is due within the normal 30-day window as if it were a cash sale.
Estimates only. Registration fee uses an approximate LRA schedule and the local transfer tax uses statutory ceilings; actual LGU rates vary. Installment sales (initial payments ≤ 25% of price) may pay CGT per installment. Interest mechanics are pending verification against RR 21-2018. This is not legal or tax advice.
Legal basis: NIRC Sec. 24(D) and Sec. 27(D)(5) (capital gains tax), Sec. 196 (documentary stamp tax), Sec. 248-249 (surcharge and interest), RR 13-99 / RR 14-2000 (principal residence exemption), RR 12-2018 (ONETT), the Local Government Code (transfer tax), and RA 12214 (CMEPA, share rules effective July 1, 2025). Last reviewed 2026-07-08.
Selling inherited property? Compute the estate tax first — no eCAR, no sale.