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Estate tax

Philippine estate tax under the TRAIN law, for citizens and resident aliens. Amounts in pesos.

AGross estate

Fair market value

Land, houses, condos

Deposits, shares, insurance

Vehicles, jewellery, business

Enter what the estate holds at fair market value on the date of death.

Gross estate
0

BDeductions

Claims against the estate

Unpaid at death

Casualty or theft during settlement

Left to the government

Received by heirs under RA 4917

The standard deduction and the family home are taken off for you.

Standard deduction
5,000,000
Family home
0
Debts, taxes, losses and transfers
0
Total deductions
5,000,000
Gross estate0
Deductions0
Net taxable estate0
Estate tax due0

Fill in the estate above to see the tax.

How it works

The calculator estimates the Philippine estate tax on the estate of a citizen or resident alien, under the TRAIN law in force since 1 January 2018. Amounts are in pesos, at fair market value on the date of death.

The gross estate is everything the person owned: the family home, other real property, cash and investments, and other property. From it the calculator takes the deductions the law allows. The standard deduction of 5 million pesos applies to every estate with no receipts required. The family home is deductible up to 10 million pesos. Debts, unpaid mortgages and taxes, losses during settlement, transfers to the government and retirement benefits received by heirs under RA 4917 are deducted at their full amounts.

If the person was married with conjugal or community property, half of the property after debts belongs to the surviving spouse and is not part of the taxable estate, and only the decedent's half of the family home counts toward the family home deduction. The tax is 6 percent of what remains. It is due within one year of death and can be paid in instalments over two years.

This is a planning estimate, not a filing. Exclusive property of one spouse, property outside the Philippines, prior gifts and the details of a particular estate can change the result, and an estate return is filed even when no tax is due.

Questions

What is the estate tax rate in the Philippines?

A flat 6 percent of the net taxable estate, for deaths on or after 1 January 2018 under the TRAIN law, Republic Act 10963. The old graduated table with rates up to 20 percent no longer applies. The net estate is the gross estate at fair market value less the deductions the law allows.

What deductions are allowed on a Philippine estate?

A standard deduction of 5 million pesos for every estate, the family home up to 10 million pesos, claims against the estate, unpaid mortgages and taxes, casualty losses during settlement, transfers for public use, and retirement benefits received by heirs under RA 4917. A surviving spouse's share of conjugal or community property is also taken out before the tax is computed.

Is the family home exempt from estate tax?

Up to 10 million pesos of its value is deductible. Above that, the excess is part of the taxable estate. If the home is conjugal or community property, only the decedent's half is counted toward the deduction.

Who pays the estate tax and when is it due?

The estate pays it, through the executor, administrator or the heirs, before the property can be transferred. The return and payment are due within one year of death. Where paying at once would cause hardship, the tax can be paid in instalments within two years without penalty.

Do I still file if no estate tax is due?

Yes. An estate tax return is filed for every estate that includes registered property, regardless of whether the deductions cover the whole estate. Filing is what lets the property be transferred to the heirs.