Hong Life CalculatorsHow estate tax is calculated (BIR Form 1801)
- Gross estate = exclusive property + conjugal/community property, at fair market value at death.
- Less ordinary deductions: claims against the estate, claims against insolvent persons, unpaid mortgages, taxes and casualty losses, property previously taxed (vanishing deduction), transfers for public use.
- Less special deductions: standard deduction ₱5,000,000 (₱500,000 for non-resident aliens); family home at fair market value up to ₱10,000,000 (half if it is conjugal property) – residents and citizens only; amounts received by heirs under RA 4917.
- Less the share of the surviving spouse: one-half of the net conjugal estate.
- Net taxable estate × 6%.
Example (defaults): net conjugal estate ₱29M, exclusive ₱5M → ₱34M; less ₱5M standard, ₱4M family home (½ of ₱8M), ₱14.5M spouse’s share → net taxable estate ₱10.5M × 6% = ₱630,000.
| Item | Rule |
|---|---|
| Rate | 6% of net taxable estate |
| Standard deduction | ₱5,000,000 (citizen/resident); ₱500,000 (non-resident alien) |
| Family home | Fair market value or ₱10,000,000, whichever is lower |
| Filing | Within one (1) year from death; extension of up to 30 days in meritorious cases |
| CPA certification | Required if gross estate exceeds ₱5,000,000 |
FAQ
Is there estate tax if the estate is below ₱5 million?
If the net taxable estate after all deductions is zero, no estate tax is due. With the ₱5 million standard deduction, the family home and the spouse’s share, many family estates owe no tax – but check the BIR’s filing requirements for transferring titles.
Can the estate tax be paid in instalments?
Yes. RR 12-2018 allows payment by cash instalment and through partial disposition of the estate. The Commissioner can also extend payment up to five years (judicial settlement) or two years (extrajudicial settlement) in cases of undue hardship.
Why is the surviving spouse’s share deducted?
Half of the net conjugal or community property already belongs to the surviving spouse, so only the decedent’s half is part of the taxable estate.
Sources (checked 10 November 2026): BIR Revenue Regulations No. 12-2018; BIR Form 1801 (January 2018) and its guidelines (standard deduction, family home, spouse’s share, CPA statement, deadline). Estimate, not tax advice.