Buying your own property is one of the greatest achievements you will acquire. It is one of the main reasons why we all work hard because property prices are very expensive. The amount of property will depend on the size you will buy, so you really need to save a large amount of money to be able to buy a property. Then once you buy your own property, you think you’re good already? That doesn’t end there. If you own a house, land, or building you must be well aware that it is your responsibility to pay Real Property Tax (RPT). If you wanted to know more, here are the things you need to know as a property owner.
What is a Real Property Tax?
Real Property Tax (RPT) is a tax that you need to pay annually if you own a house, land, building, or any property. RPT is imposed by the Local Government Unit (LGU) and was specified under the Local Government Code. The reason why RPT is implemented is to increase the funding for LGU so that they can provide basic public services.
Who Needs to Pay RPT?
Anyone who owns property needs to pay RPT. It can either be land, building, or house, whether it’s for commercial or residential use as long as your name is written in land titles or certificates of property ownership, you need to pay RPT.
How to Compute RPT Payment?
If you want to know how much you need to pay, you can compute it yourself. Here’s what you should do:
Multiply the RPT rate by the property taxable value
If you don’t know the taxable value, here’s what you should do:
Multiply the actual market value of the property to the property’s assessment level
You have an option to pay your RPT in full or quarterly installments, it depends on. But if you wanted to pay it in full, you need to pay every 31st of January every year. However, if you want to pay it in quarterly installments, you need to pay it every:
- January 31 (First Quarter)
- June 30 (Second Quarter)
- September 30 (Third Quarter)
- December 31 (Fourth Quarter)
As a final point, if you can afford to buy a property, it is your responsibility to allot money to pay your RPT as well. It is important that you must be well aware of the things you need to know as a property owner so that there will no problem that might cause you inconvenience.