Transfer Tax & LRA Registration Fees Philippines (2026)
LGU transfer tax rates (0.5-0.75%), LRA registration fee schedule by price bracket, and total closing costs for property transfers in the Philippines.
Quick Answer
Local transfer tax in the Philippines ranges from 0.5% (provincial) to 0.75% (cities and Metro Manila), based on the higher of selling price or fair market value. LRA registration fees are tiered by property value. Both are paid by the buyer. Total closing costs (CGT + DST + transfer tax + registration) typically reach 8-10% of property value.
Local Transfer Tax Rates
“The province may impose a tax on the transfer of real property ownership at a rate of not more than fifty percent (50%) of one percent (1%) of the total consideration involved in the acquisition of the property or of the fair market value in case the monetary consideration involved in the transfer is not substantial, whichever is higher. The sale, donation, barter, or on any other mode of transferring ownership or title of real property is taxable.”
What This Means
The local transfer tax is imposed by the LGU (city or municipality) on every transfer of real property ownership. For provinces, the maximum rate is 50% of 1% (0.50%). For cities and municipalities within Metro Manila, the rate can be up to 75% of 1% (0.75%) under Section 151. This tax is separate from and in addition to national taxes (CGT, DST). The tax base is the total consideration (selling price) or fair market value, whichever is higher. the same principle used for national taxes.
- Provincial rate: up to 50% of 1% (0.50%) of higher value
- Metro Manila cities: up to 75% of 1% (0.75%) under Section 151
- Tax base: selling price or FMV, whichever is higher
- Paid to the City/Municipal Treasurer's Office
- Required before Registry of Deeds will process the title transfer
Real-World Scenario
A house and lot in Quezon City is sold for P10,000,000. The assessed value is P8,000,000 and the zonal value is P9,500,000. Quezon City imposes the maximum transfer tax rate allowed.
How much is the local transfer tax?
Registry of Deeds Registration Fees
“For registration of any deed, conveyance, mortgage, lease, or other instrument affecting land registered under the Land Registration Act or under the Spanish Mortgage Law, or any interest therein, the Register of Deeds shall collect fees in accordance with a schedule to be prepared by the Administrator of the Land Registration Authority with the approval of the Secretary of Justice.”
What This Means
The Registry of Deeds charges registration fees based on a schedule that varies by the value of the property or consideration. These fees cover the issuance of a new Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) in the buyer's name. The fees are computed on a sliding scale. higher-value properties pay proportionally more. Additional fees include annotation fees, entry fees, and certification fees. These costs are typically borne by the buyer.
- Registration fee is based on a sliding scale set by the LRA
- Covers issuance of new TCT/CCT in buyer's name
- Additional fees: annotation, entry, certification, and IT fees
- Typically paid by the buyer (unless contract says otherwise)
- Processing time: usually 1-4 weeks after complete documents are submitted
Real-World Scenario
Buyer Lopez just paid the CGT, DST, and transfer tax for her newly purchased condominium unit worth P6,000,000. She goes to the Registry of Deeds to have the title transferred but is told she needs to pay additional registration fees.
What fees should Buyer Lopez expect at the Registry of Deeds?
LRA Registration Fee Schedule by Property Value
“The Land Registration Authority prescribes the schedule of fees for registration of deeds and other instruments. Fees are computed on a sliding scale based on the value of the consideration or fair market value, whichever is higher. The official Estimate Registration Computation Fees (ERCF) tool published by the LRA is the authoritative reference for current rates.”
What This Means
The LRA registration fee is computed on the higher of selling price or fair market value, using a sliding scale that the LRA updates periodically. For properties up to P1,700,000 the fee follows a detailed bracket table. Above P1,700,000 the fee continues at a fixed base plus an increment for every P20,000 of value over the threshold. Because exact figures change with each LRA circular, always confirm the current rate using the LRA's ERCF tool or the latest published schedule before quoting a number to a client.
- Computed on the higher of selling price or fair market value
- Sliding scale, updated periodically by LRA circular
- Above P1,700,000: base fee plus increment per P20,000
- Plus entry fee, IT fee, and certification fee (typically P200-P500 each)
- Use the LRA ERCF tool for the authoritative current computation
Real-World Scenario
Buyer Reyes is closing on a condominium unit in Makati priced at P3,500,000. She wants to estimate the LRA registration fee before going to the Registry of Deeds.
How should Buyer Reyes estimate the LRA registration fee for a P3,500,000 property?
Tax Clearances Required for Title Transfer
“No registration of any deed or instrument transferring real property shall be effected by the Register of Deeds unless the Commissioner or his duly authorized representative has certified that the transfer has been reported, and the tax due thereon, if any, has been paid.”
What This Means
Before the Registry of Deeds will register the transfer, three tax clearances must be obtained: (1) CAR (Certificate Authorizing Registration) from the BIR. proving CGT/CWT, DST, and any VAT have been paid, (2) Transfer Tax Clearance from the local Treasurer's Office, and (3) Real Property Tax Clearance from the Assessor's Office (proving no unpaid real property taxes). Missing any one of these stops the transfer process. The CAR alone typically requires 5-15 working days to release.
- CAR from BIR: proof that CGT/CWT, DST, and VAT are paid
- Transfer tax clearance: from City/Municipal Treasurer
- Real property tax clearance: no unpaid annual real property taxes
- All three must be presented to the Registry of Deeds
- CAR processing: typically 5-15 working days after filing
Real-World Scenario
Attorney Cruz is processing a title transfer for his client. He has paid the CGT and DST and obtained the CAR from BIR. He also paid the local transfer tax. When he submits to the Registry of Deeds, the registrar refuses to process the transfer.
What is likely missing from Attorney Cruz's submission?
Frequently Asked Questions
Who pays the local transfer tax. buyer or seller?
The Local Government Code imposes the transfer tax on the "person who acquired the property". meaning the buyer is the statutory taxpayer. However, in practice this is negotiable and the contract of sale may allocate it differently. Many transactions split it or assign all transfer costs to one party by agreement.
What is the total tax cost of a real estate sale in the Philippines?
For a capital asset sale, the seller pays: CGT (6%) + DST (1.5%) = 7.5% of the higher of selling price or FMV. The buyer pays: Transfer tax (0.50-0.75%) + Registration fees (sliding scale). For ordinary asset sales, replace CGT with CWT (1.5-5%) + income tax on the gain + possible 12% VAT. Total cost typically ranges from 8-12% of the property value.
Can I transfer a title without paying all the taxes first?
No. The BIR will not issue a CAR until all national taxes (CGT/CWT, DST, VAT) are paid. The Registry of Deeds will not register the transfer without the CAR, transfer tax receipt, and real property tax clearance. There is no legal way to transfer a registered title without full tax compliance. Attempting to circumvent this (e.g., through unregistered deeds) creates legal risks for both parties.
How much is the LRA registration fee for a property over P1.7 million pesos?
For properties valued above P1,700,000, the LRA registration fee uses a sliding scale: a fixed base fee plus an increment for every P20,000 of value above the threshold. The exact base and increment depend on the LRA's current schedule, which is updated by circular. The most reliable way to compute the fee for any property value is the LRA's official Estimate Registration Computation Fees (ERCF) tool at lra.gov.ph/ercf. For a property in the P3M to P5M range, expect registration fees of roughly P15,000 near the P3M end, scaling to about P25,000 near P5M, plus minor entry and certification fees.