It’s such a good feeling having a house to call your own, especially if you have your own family. Owning a home could also be expensive - it’s not just the regular maintenance and repair expenses that you have to worry about, but you also have to deal with real property tax (RPT).
If you have a home that is bigger than others, expect to pay higher real property tax. Same thing if you have more properties, expect that you will shell out more money for RPT every year. RPT is usually between one and two percent of the assessed value of a real estate property and must be paid annually by the homeowner.
However, just like other tariffs imposed on goods and services, property owners can also take advantage of several exemptions so that their RPT could be lowered, as long as they are able to meet certain criteria set by the government.
It may entail additional effort and sacrifice but it will help you to regularly cover your property taxes with great ease and confidence over the course of a lifetime. Here are some of the options that could help you lower your annual RPT.
Downsize
If you are currently living in a luxurious house on an expansive lot in an upscale residential village in Metro Manila, expect that your RPT will cost you a lot.
But if you want to lower your fees, you can just opt to downsize and live in a cozy home that’s just right enough for you and your family. At least you get to live comfortably without stressing yourself so much on the fees annually. Think about the money that you could save - that’s a ton of money that you could use for a future family vacation overseas. Not to mention, your home improvement expenses will be lessened too.
Reside outside the metropolis
If your property is located in Metro Manila’s key cities and municipalities, expect that your annual RPT is pegged at two percent of its assessed value but for other provinces in the country, the annual RPT is at one percent.
If you decide to settle down outside the metropolis, you will also enjoy other benefits such as enjoying an environment that is more relaxed, you will deal less with the daily traffic chaos, and of course, it is friendlier in your pockets, too. Think about the lower cost of living expenses (and huge savings on your annual RPT).
Check your tax bill for inaccuracies
One way to lower your RPT is by checking out the tax bill itself. You can likely obtain a free copy of your property tax bill from the local government offices and use that to check out the details of your tax bill.
Once you have it, you should be able to ensure that the size of the property and the square footage of the building are accurate. If you find any issues, you can talk to the tax assessor so they can correct them for you.
Pay your RPTs ahead of time
Paying your RPT early might entitle you to some discounts. Meanwhile, failing to pay for your RPT on time, which is on January 31st of every year, will entail penalties, which you will really have to settle, or else you might suffer losing your home.
Homeowners are also given the option to pay their RPTs through quarterly installments if the annual amount is high. These, however, vary depending on the local government units.
Consider using a big part of your property for educational or religious functions
If your property is being used for religious, charitable, or educational purposes, then it is exempted from RPT even if it is not technically owned by any religious, charitable, or educational institution.
If you want to convert a large portion of your property into a pre-school area and allow a small area for your living accommodation then you could either get an RPT exemption or a huge discount.
See If You Qualify For Tax Exemptions
Many local government units provide tax exemptions for a number of reasons, which include exemptions for seniors, veterans, homesteaders, and certain agricultural uses.
You should check to see if your property qualifies for an exemption. With this, you might be able to save a significant amount of money by making an effort to find out. Aside from the tax exemptions, of course, there are also tax benefits for the tax payers.
There’s no escaping the tax authorities as it is a part of our civic duties as citizens. As a homeowner, one of the expenses that you just can’t avoid is property taxes. If you’re struggling to cover your property taxes, remember that there are various ways to lower your tax payments. Aside from the tips mentioned, you may also consider applying for tax relief programs, tax deductions, or even a refinance to cover the costs.
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. that offers ready for occupancy and pre-selling condominium projects in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and CDO that are strategically located within major cities, in close proximity to premium universities, transit oriented locations and developed business districts.
Living in Vista Residences enables you to enjoy convenience, where everything is pretty much within walking distance or a few minutes away from the property; comfort because the project features and amenities are designed to deliver comfort at all times, which makes condo living a worthy investment; security that is 24/7 and CCTV monitoring, which makes the residents safe and secure within the property.
In line with Vista Residences’ thrust to offer convenience among its residents, it also features an AllDay Convenience Store and Coffee Project in all its projects.
Vista Residences is part of Vista Land’s roster of vertical housing brands that cater to millennials and young professionals. The other vertical brands include Camella Manors, COHO, and Crown Asia.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.