Estate Tax Calculator (Philippines)
Tax on an inherited estate.
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- No sign-up
- Private — runs in your browser
- Instant results
How estate tax works in the Philippines
When a person passes away, the transfer of their estate to their heirs is subject to estate tax. Under the TRAIN law (effective 2018), the Philippines uses a single flat rate of 6% on the net estate — a major simplification from the old tiered rates of up to 20%. The net estate is the gross estate minus the deductions allowed by law, and the 6% applies only to what remains.
The standard deduction and other deductions
Every estate gets an automatic ₱5,000,000 standard deduction, with no need to prove or itemize it. On top of that, other allowable deductions can include:
- Family home — deductible up to ₱10,000,000 of its fair market value.
- Claims against the estate — the deceased's debts and unpaid obligations.
- Property previously taxed, transfers for public use, and similar items.
Enter the total of these in the "other deductions" field. Because of the ₱5M standard deduction alone, many modest estates end up owing little or no estate tax.
How to use this calculator
Enter the gross estate value — the total fair market value of everything the person owned — and any other allowable deductions. The calculator subtracts the ₱5M standard deduction automatically, applies the 6% rate to the net estate, and shows the tax due. It's an estimate to help you plan; the actual return is filed with the BIR.
FAQ
When is the estate tax return due?
The estate tax return must generally be filed within one year of the date of death, though extensions and payment by installment may be available. Late filing incurs penalties and interest.
Is the family home always tax-free?
Only up to ₱10,000,000 of its value is deductible. A family home worth more than that has the excess included in the net estate. The deduction also requires that the property was the decedent's actual family home.
Does the 6% rate apply to the gross or net estate?
Only the net estate — after the standard deduction and other allowable deductions. The gross value is never taxed directly, which is why the deductions matter so much.