Donor's Tax Calculator (Philippines)

How donor's tax works in the Philippines

Donor's tax is paid when you give property or money as a gift during your lifetime. Under the TRAIN law (effective 2018), the Philippines applies a flat 6% rate on total gifts made during the calendar year that exceed a ₱250,000 annual exemption. The same 6% rate applies whether the recipient is a relative or a stranger — the old distinction between the two was removed.

The ₱250,000 annual exemption

Each donor gets a ₱250,000 exemption per calendar year, not per gift or per recipient. This means all the gifts you make in a year are added together, and only the cumulative amount above ₱250,000 is taxed. If you give ₱150,000 in March and ₱200,000 in October, the total of ₱350,000 is ₱100,000 over the exemption, so 6% applies to that ₱100,000.

How to use this calculator

• Total gifts this year — the donation you're calculating tax for.
• Prior gifts already taxed — earlier gifts in the same year, so the calculator applies the ₱250,000 exemption only once across them.

The taxable amount and donor's tax due update instantly as you type.

FAQ

Are gifts between spouses taxable?

Donations between spouses during the marriage are generally void under the Family Code (except modest gifts), so they don't normally fall under donor's tax. Gifts to children and other relatives are taxed under the same 6% rule shown here.

When and where is donor's tax filed?

The donor's tax return is filed with the BIR within 30 days after the gift is made, and the tax is paid at the time of filing.

Does the exemption reset each year?

Yes. The ₱250,000 exemption applies per calendar year, so spreading large gifts across multiple years can reduce or eliminate the tax — a common estate-planning strategy.