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Inheritance tax in Philippines 2026
The estate tax is a flat 6% of the net estate — after subtracting a PHP 5 million standard deduction, the family home up to PHP 10 million, debts and the surviving spouse's own share.
Gifts use the same flat 6%, but only on total gifts above PHP 250,000 per calendar year, whoever the recipient is.
At a glance
- top rate
- 6% flat (estates and gifts)
- entry band
- PHP 5 million standard deduction; gifts free to PHP 250,000/year
- tax year basis
- At death / per calendar year of gifts
- filing deadline
- Estate tax return; gift returns per year
- residency basis
- Citizens and residents: worldwide assets; non-resident aliens: Philippine assets only
- regime flag
- No estate or gift tax treaties exist
Rates
Estate and gift taxation (2026)
| Rate | Base | Applies to |
|---|---|---|
| 6% | Net estate | After the PHP 5 million standard deduction, family home up to PHP 10 million, debts and the spouse's share |
| 6% | Gifts above PHP 250,000 per year | Donor's tax — same rate for family and strangers |
| 6% | Amounts withdrawn | Final withholding on a deceased person's bank accounts drawn before estate settlement |
Thresholds & allowances
- Standard deductionPHP 5 million
PHP 500,000 for non-resident aliens, whose other deductions are pro-rated
- Family homeUp to PHP 10 million
Deducted at fair market value
- Gift allowancePHP 250,000 per calendar year
Total gifts by one donor; spouses count as separate donors
Residency
Residency trigger
Citizens' and residents' worldwide estates are in scope; a non-resident foreigner's estate only for Philippine assets, with intangibles subject to a reciprocity test.
Non-resident treatment
Non-resident alien estates get the smaller PHP 500,000 standard deduction and pro-rated debt deductions; foreign estate taxes are creditable within limits.
Notes
- Life insurance paid to an irrevocably named beneficiary stays outside the estate, as does the surviving spouse's own half of community property.
- Property the deceased inherited within the previous 5 years enjoys a 'vanishing deduction' of 100% down to 20% to soften back-to-back taxation.
- Selling shares below market value can be taxed as a part-gift: the shortfall attracts the 6% donor's tax unless the deal is genuinely arm's length.
- Donations to accredited charities are exempt if no more than 30% goes to administration; the estate-tax amnesty for older deaths closed on 14 June 2025.
FAQ
How much is Philippine estate tax?
A flat 6% of the net estate — after a PHP 5 million standard deduction and up to PHP 10 million for the family home, many middle-class estates owe little or nothing.
How are gifts taxed in the Philippines?
At 6% on total gifts above PHP 250,000 per donor per year — the recipient's relationship no longer matters.
Figures: tax year 2026, compiled from public sources. Not tax advice.