Transferring a Property Tax Declaration After the Owner’s Death in the Philippines (Comprehensive 2025 Legal Guide)
1. Why the Tax Declaration Still Matters
A Tax Declaration (TD) is the local assessor’s record of a parcel’s taxable value.
It is not a definitive proof of ownership—that role belongs to the Transfer/Original Certificate of Title (TCT/OCT) if the land is titled—but a TD is still required to:
- generate the Real‑Property‑Tax (RPT) bill every year;
- obtain clearances for subdivision, building permits, or bank loans; and
- support claims over untitled or ancestral land.
When the registered owner dies, the TD must be re‑issued in the heir(s)’ name or in the name of the “Estate of the Late …,” so the LGU can legally bill the correct taxpayer and assess the correct market value after any partition.
2. Governing Laws & Newest Amendments (as of July 2025)
| Subject | Key Authority | 2025 Status |
|---|---|---|
| Estate settlement | Civil Code (Arts. 776‑1101); Rule 74, Rules of Court | Allows Extrajudicial Settlement (EJS) when there is no will and no minor/heir contest |
| Estate tax | Secs. 84‑97, National Internal Revenue Code (NIRC) as amended by the 2018 TRAIN Law | Flat 6 % on net estate; return & payment due within 1 year from death (extensions possible) |
| Estate‑Tax Amnesty | RA 11213 (2019), extended by RA 11569 (2021) and RA 11956 (2023) | Amnesty period now ends 14 June 2025; covers deaths on or before 31 May 2022 |
| Transfer & real‑property taxes | Local Government Code (RA 7160), LGU revenue ordinances | Transfer tax typically 0.5 % – 0.75 % of zonal/fair‑market value, payable within 60 days of notarizing the deed |
| Assessor procedures | DILG‑BLGF Assessment Regulations; Local Assessor’s Office (LAO) manuals | Provide standard checklists and sworn‑valuation forms |
3. Big‑Picture Workflow
graph TD
A[Death of Registered Owner] --> B[Settle the Estate]
B --> C[Pay Estate Tax & Secure BIR CAR]
C --> D[Pay Local Transfer Tax & Secure RPT Clearance]
D --> E[File for Transfer of Title (Registry of Deeds)]
E --> F[Apply for Transfer of Tax Declaration (Assessor)]
F --> G[LAO Ocular Inspection & New TD Issuance]
G --> H[Update Other Agencies (BIR, Barangay, Utilities)]4. Step‑by‑Step Details
4.1 Settle the Estate
Choose the mode
- Extrajudicial Settlement (EJS) – No will, heirs agree, no minor/incapacitated heirs; must be notarized and published in a newspaper of general circulation once a week for three consecutive weeks.
- Judicial Settlement – Probate of a will (testate) or court settlement (intestate) when conditions for EJS are not met.
- Donation inter vivos/partition in a lifetime – only if owner planned it before death.
Secure the estate’s TIN from the BIR (distinct from the heirs’ TINs).
Inventory & valuation – List all real/personal properties with fair‑market values (FMV) based on:
- BIR zonal values (for land/buildings);
- Sworn declaration of heirs (vehicles, shares, cash, etc.).
4.2 Pay Estate Tax & Get the Certificate Authorizing Registration (CAR)
| Requirement | Tips |
|---|---|
| Estate Tax Return (BIR Form 1801) | File and pay within 1 year of death; interest = 20 % p.a. + surcharge = 25 % if late. |
| Supporting docs | Death certificate, EJS or court order, original title(s)/TD(s), notarized schedule of assets & liabilities, IDs/TINs of heirs. |
| Amnesty? | If the decedent died on/before 31 May 2022, you may opt into the estate‑tax amnesty at 6 % of net estate without interest until 14 June 2025. |
| CAR validity | CAR does not expire, but LGUs require it to be presented within the same taxable year for TD transfer. |
4.3 Pay Local Taxes & Secure Clearances
- Transfer Tax – Pay at the City/Municipal Treasurer’s Office (CTO/MTO) within 60 days of executing the EJS or court order.
- Real‑Property‑Tax (RPT) Clearance – Shows all RPT up to December 31 of the current year are paid. Heirs may settle delinquency with penalties (2 % per month, max 36 %).
4.4 Transfer the Title (if the land is titled)
- Register EJS/partition deed with the Registry of Deeds (RD).
- RD cancels parent TCT/OCT and issues new individual titles to the heirs, or a single TCT “in undivided shares.”
- Secure RD‑certified true copy for the Assessor.
Untitled land or tax‑declared land: skip the RD step; the TD and supporting documents will be the primary basis for the Assessor.
4.5 Apply for Transfer of the Tax Declaration
| Assessor’s Office Checklist | Notes |
|---|---|
| Application for Transfer (pro‑forma LAO form) | Must state reason: “Transfer by succession”. |
| Certified true copy of new TCT/OCT or photocopy of old TD + proof of ownership if land is untitled | Untitled land: provide a DENR‑approved plan or barangay boundary cert. |
| CAR + stamped Estate Tax Return | CAR must show “No Improvement” or “With Improvement” consistent with actual structures. |
| EJS / Court Order (with publication proofs) | If published in a provincial paper, attach publisher’s affidavit & clippings. |
| RPT Clearance & Transfer‑Tax Receipt | Most LGUs won’t process without these. |
| Valid IDs & TINs of all heirs / authorized representative | Overseas heirs may execute a consularized Special Power of Attorney (SPA). |
| Sworn Statement of True Current Value (SSV) | Often required when there are improvements or the last assessment is outdated. |
Processing steps
Document review & intake – Assessor verifies completeness and evaluates FMV.
Ocular inspection – Field appraiser visits the property to confirm land area, use, and improvements; takes photographs.
Assessment & encoding – New Tax Declaration(s) issued either:
- one TD per heir (if lot subdivided); or
- one TD in the name “Heirs of Juan Dela Cruz” for undivided estate.
Release – Claim new TD and property cards; get updated RPT bill.
Average turnaround: 5 – 20 working days, depending on LGU and holidays.
5. Fees, Surcharges, and Penalties
| Fee/Tax | Statutory Rate | Trigger/Deadline | Penalty for Delay |
|---|---|---|---|
| Estate Tax | 6 % of net estate (less allowable deductions) | Pay within 1 year of death (can extend) | 25 % surcharge + 20 % p.a. interest |
| Estate‑Tax Amnesty (until 14 Jun 2025) | 6 % of net estate OR minimum ₱ 5,000 | If decedent died ≤ 31 May 2022 | No surcharge or interest |
| Transfer Tax | 0.5 %–0.75 % of higher of FMV or zonal value | Pay within 60 days of deed/execution | 25 % surcharge + 2 % per month |
| RPT | Basic 1 % of assessed value + SEF 1 % | Quarterly or annual | 2 % per month, max 36 % |
| Assessor Fees | ₱ 200 – ₱ 1,200 (varies) | Upon application | Processing stalled if unpaid |
6. Special Situations & Practical Work‑arounds
| Scenario | Key Rule & Work‑around |
|---|---|
| One heir refuses to sign EJS | File a petition for settlement in court; judge may allow partial issuance of TD to consenting heirs subject to partition approval. |
| Property is just tax‑declared, no title | Submit DENR‑CENRO approved plan, barangay certification of possession, and proof of payment of RPT for at least 30 years to bolster claim. |
| Minor heirs | Court‑appointed guardian signs EJS; BIR requires the Letters of Guardianship and guardianship bond (if ordered). |
| Heirs abroad | Consularized/apostilled SPA + photocopy of passport suffices. |
| Lost Owner’s Duplicate Title | Heirs must secure an RD‑issued reconstituted owner’s duplicate or a court‑ordered new title under RA 26 before TD transfer. |
| Estate has unpaid BIR deficiency from prior assessments | BIR will deny CAR until back taxes plus penalties are settled or the compromise/abate process is completed. |
| Estate still in litigation | LAO can annotate TD “under litigation – no further transfer allowed”; payment of RPT remains heir‑liability to avoid auction. |
7. Common Pitfalls to Avoid
- Ignoring the one‑year estate‑tax filing deadline – even if you intend to avail of amnesty later, a CAR is still required for title/TD transfer.
- Assuming the TD alone makes you owner – banks and courts rely on the TCT/OCT; secure the title first whenever possible.
- Failure to publish the EJS – makes the deed void as to third persons, which Assessor and BIR will flag.
- Using outdated LGU FMVs – always cross‑check with the latest Schedule of Fair‑Market Values; under‑declaration triggers penalties.
- Letting RPT arrears pile up – LGU can auction real property after 3 years of delinquency even while estate settlement is pending.
8. Frequently Asked Questions
| Q | Quick Answer |
|---|---|
| Can we transfer the TD before finishing the title transfer? | For titled land, most Assessors require the new title first. Untitled land may skip RD. |
| Is an EJS enough if there is a will? | No. A will must be probated in court; only the probate decree can be registered and used for the TD transfer. |
| Do we need a new TD every time an heir sells her share? | Yes. Each subsequent conveyance (sale, donation, partition) triggers a new TD transfer, CAR, and transfer tax cycle. |
| What if the decedent had no TIN? | Apply for an Estate TIN at the BIR before filing the estate‑tax return. |
| Will the LGU reassess the market value? | Almost always—expect an ocular inspection and possible increase in assessed value upon transfer. |
9. Practical Checklist (Print‑Friendly)
- Civil Docs: Death Certificate, IDs, Birth/Marriage Certificates of heirs
- Settlement Deed: EJS (notarized + publication) or Court Order
- BIR: Estate TIN → Estate Tax Return + payment → CAR
- Local Taxes: Transfer‑Tax Receipt, RPT Clearance
- Title/Ownership Proof: New TCT/OCT (if applicable) or old TD + land plan
- Assessor Forms: Application for Transfer, Sworn Statement of Value
- Field Inspection: Attend ocular, sign valuation sheet
- Claim New TD: Verify spelling, lot area, assessed value
- Update Others: Barangay logbook, utility records, HOA
10. Key Take‑aways
- Synchronize BIR, RD, and Assessor filings to avoid document expiry and penalty overlaps.
- Name the TD correctly (“Estate of the Late …” or specific heirs) to simplify future transfers.
- Keep proof of RPT payments—RPT penalties can erode the estate quickly.
- Finish before June 14 2025 if eligible for the amnesty; that window will close.
By understanding the statutory steps, coordinating with the BIR, Registry of Deeds, and Local Assessor’s Office—and by meeting all tax obligations on time—you can ensure a smooth and legally sound transfer of a property’s tax declaration from the deceased owner to the rightful heirs.