RPT (real property tax)

RPT (real property tax) — the LGU’s annual tax on real property: up to 1% of assessed value in provinces, 2% in cities/Metro Manila, plus the 1% SEF (Special Education Fund) levy. Assessed value is a fraction of market value (assessment levels run ~10–20% for residential), so RPT stays small — but it’s never zero, it’s deductible under the graduated regime, early full payment earns 10–20% discounts, and unpaid RPT is a lien that transfers with the property: a foreclosure bargain with three years of arrears is a bill you bought.

First used in: 3.4 · Underwriting: the Gallinelli math