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Real Property Tax is a tax based on the value of real properties, including land, buildings, improvements, and machinery.

Tax Campaign Update: In the Municipality of Lemery, Iloilo, the Notice of Delinquencies (NOD) was sent to real property tax owners at the beginning of the first quarter of this year. The local treasury office and our dedicated RPT Focal Person, along with their staff, distribute NODs and judicial letters to real property owners who have arrears in real property tax (RPT) in a timely manner. This is part of their responsibility to efficiently administrative and civil remedies in the collection of RPT.

What Happens if I Fail to Pay My Real Property Tax? 

There are consequences in the event that you fail to pay the RPT or amilyar of your property, the most immediate of which is interest accruing on top of the unpaid taxes. According to Section 255 of the Local Government Code of the Philippines, failing to pay RPT “shall subject the taxpayer to the payment of interest at the rate of two percent (2%) per month on the unpaid amount or a fraction thereof, until the delinquent tax shall have been fully paid: Provided, however, that in no case shall the total interest on the unpaid tax or portion thereof exceed thirty-six (36) months.”

Pay Early to Avoid Penalties, and Even Get Discounts

One way to avoid the penalties associated with late or non-payment of RPT is to make sure that your property is properly appraised with the resulting RPT duly paid on or before January 31, which is the tax’s annual due date. In the event that an entire year’s worth of RPT is too large to cover in one payment, owners also have the option of paying in quarterly installments. If want to do so, then be mindful of the following due dates:

  • On or before March 31
  • 2nd quarter: On or before June 30
  • 3rd quarter: On or before September 30
  • 4th quarter: On or before December 31

While being able to avoid penalties and additional interest is a benefit in itself when promptly paying your RPT, there is also the opportunity to benefit further by paying it much earlier than at the end of January. Depending on the location of your property and the local government unit it falls under, you may be granted a discount not exceeding 20 percent of the annual tax due when you pay your property’s RPT early.