Estate Tax

If the new estate is

Over

But Not Over

The Tax Shall Be

Plus

Of the Excess Over

P200,000

Exempt

P200,000

P500,000

5%

P200,000

P500,000

P2,000,000

P15,000

8%

P500,000

P2,000,000

P5,000,000

P135,000

11%

P2,000,000

P5,000,000

P10,000,000

P465,000

15%

P5,000,000

P1,215,000

20%

P10,000,000

P10,000,000
Source: www.bir.gov.ph
New Estate = Gross Estate Deductions

For example, if the new estate to be inherited is valued at Php1 million, the estate tax shall be Php15,000 plus Php40,000 (or eight
percent of Php500,000), which totals Php55,000.