Home › Buyer Guides › Capital Gains Tax vs Documentary Stamp Tax vs Transfer Tax
The four charges at a glance
| Capital gains tax | Documentary stamp tax | Transfer tax | Registration fee | |
|---|---|---|---|---|
| Rate | 6% | 1.5% (₱15 per ₱1,000) | Up to 0.5% (provinces); up to 0.75% (cities) | Graduated LRA schedule |
| Base | Highest of price, zonal value, or assessor's FMV | Highest of price, zonal value, or assessor's FMV | Higher of price or fair market value | Price or value, per LRA table |
| Paid to | BIR | BIR | Provincial or city treasurer | Registry of Deeds |
| Deadline | 30 days after notarization | 5th day of the month after notarization | 60 days from notarization | When documents are presented for registration |
| Customarily paid by | Seller | Buyer | Buyer | Buyer |
What each one is for
Capital gains tax: tax on the seller's sale
CGT treats the sale as income to the seller and taxes it at a flat 6%, whether or not the seller actually made a profit. It applies to capital assets sold by individuals. Developer sales use income tax with creditable withholding tax instead. Full details are in the capital gains tax guide.
Documentary stamp tax: tax on the deed
DST is a tax on the document (the deed of sale) that transfers the property. It applies to developer sales and resales. A separate DST is also due on the mortgage if you take a loan, which lenders usually include in loan charges.
Transfer tax: the local government's share
Under the Local Government Code, provinces may charge up to 50% of 1% (0.5%) on the transfer of real property, and cities may charge up to 50% more (0.75%). The exact rate is in the LGU's revenue code. For property in San Pablo City, ask the City Treasurer's Office which rate and office apply before you compute.
Registration fee: the new title
The Registry of Deeds charges fees under the Land Registration Authority's schedule to register the deed, cancel the seller's title, and issue yours. Expect several thousand pesos for typical house-and-lot values, plus entry and annotation fees.
Worked example: a ₱3,000,000 resale
| Item | Computation | Amount |
|---|---|---|
| Capital gains tax | ₱3,000,000 × 6% | ₱180,000 |
| Documentary stamp tax | ₱3,000,000 × 1.5% | ₱45,000 |
| Transfer tax (city, 0.75%) | ₱3,000,000 × 0.75% | ₱22,500 |
| Transfer tax (province, 0.5%) | ₱3,000,000 × 0.5% | ₱15,000 |
| Registration and annotation fees | LRA schedule (estimate) | ≈ ₱8,000 to ₱15,000 |
On top of these come notarial fees, certified true copies, tax clearances, and processing or liaison fees if you hire someone to run the transfer.
Who pays: law vs. custom
Article 1487 of the Civil Code says the expenses of executing and registering a sale are borne by the seller unless the parties agree otherwise. In practice, Philippine resale deals usually split it this way: seller pays CGT (and any unpaid amilyar), buyer pays DST, transfer tax, and registration. Developers usually collect the buyer's share as miscellaneous fees, often 5% to 7% of the price. Ask whether that is included in or added to the advertised price.
Whatever you agree, write it into the contract with deadlines. A seller who delays paying CGT blocks your eCAR and your title.
Frequently asked questions
What is the difference between capital gains tax and documentary stamp tax?
CGT (6%) taxes the seller's gain from the sale. DST (1.5%) taxes the deed of sale as a document. Both go to the BIR and both must be paid before the eCAR is issued.
How much is the transfer tax in the Philippines?
Up to 0.5% of the higher of the selling price or fair market value for properties in provinces, and up to 0.75% in cities, based on the local revenue code. Confirm the exact rate with the treasurer's office.
Who pays documentary stamp tax on a house sale?
By common practice, the buyer, although the law allows the parties to agree otherwise. In developer purchases, it is usually part of the miscellaneous fees.
Are these taxes included in the developer's miscellaneous fees?
Usually yes for the buyer's share: DST, transfer tax, registration, and processing. Ask for a line-by-line breakdown and whether the miscellaneous fees are financed or paid in cash.
Related buyer guides
- Capital Gains Tax on Property in the Philippines
- How Land Title Transfer Works in the Philippines (Buyer's Plain-English Guide)
- Zonal Value vs Market Value vs Assessed Value
- The Real Cost of Buying a House in the Philippines: Reservation to Turnover
Official sources and further reading
Reviewed for accuracy on October 4, 2026. Rates, fees, thresholds, and agency procedures change. Confirm transaction-specific details with the issuing agency, your lender, or a lawyer before you pay or sign.
About the author: Jeremiah Villagomez is a PRC-accredited and DHSUD-accredited Real Estate Salesperson based in San Pablo City, Laguna. He helps first-time buyers, OFWs, and relocating families buy house and lot homes with Pag-IBIG, bank, or cash financing. More about Jeremiah · Call 0976 302 6551
Have a specific situation? Call or text 0976 302 6551 and I will run the numbers for your exact unit, budget, and financing route for free.
