Makati Mayor Abigail Binay has approved a landmark ordinance lowering real property tax (RPT) rates on all land classes in Makati City, marking the largest tax reduction and lowest assessment level to date.
On March 24, Binay signed City Ordinance No. 2025-047, which amends sections of the Revised Makati Revenue Code (City Ordinance No. 2004-A-025) concerning the imposition of basic real property tax and assessment levels.
“After a comprehensive review of current tax rates and prevailing economic conditions, we have decided to lower tax rates for all classes of land in the city. Residents and property owners will now benefit from substantial savings thanks to the biggest tax reduction and the lowest assessment levels implemented by the city government,” she stated.
By reducing tax rates, Binay expressed hope that the city would attract more investments, fostering long-term growth and sustainability. Lowering the city’s RPT rates is a timely and sensible decision, with expected long-term benefits outweighing any immediate revenue loss in the coming months.
“I believe we can manage well even with reduced RPT collections. As more businesses choose to establish themselves in Makati, our revenue from business taxes and related fees will increase, leading to more job opportunities for our residents,” the mayor remarked.
She noted that the city’s substantial savings from the removal of subsidies to the 10 Embo barangays, which have been transferred to Taguig’s jurisdiction—estimated at P7.9 billion annually—further enhance its capacity to absorb any potential revenue losses.
As amended by the new ordinance, Section 2A.02 sets the revised rates of levy percentages applicable to lands, whether residential, commercial, industrial, or special, located in Makati.
The tax rate for Residential properties has been reduced from 1.5% to 1%; Commercial properties from 2% to 1.5%; Industrial properties from 2% to 1.5%; and Special properties from 1.5% to 0.5%.
Moreover, the additional tax rate for properties classified as Residential/Commercial has also been reduced from 0.25% to 0.125%. Tax rates for Buildings, Machineries and Other Improvements remain the same, as follows: Residential, 1.5%; Commercial, 2%; Industrial, 2%; and Special, 0.5%.
Under the amended Section 2A.07 of the revenue code, the assessment levels applied to the fair market value of real property to determine its assessed value have also been significantly lowered.
For residential properties, the assessment level per classification has been adjusted as follows: R-1 from 12% to 0.65 percent; R-2 from 12% to 0.30%; and R-3 from 12% to 0.25%. Commercial and Industrial properties, previously assessed at 40%, are both assessed at lower rates. For commercial properties, C-1 is now assessed at 2%; C-2 is now at 0.70%; and C-3, at 0.60%. For industrial properties, I-1 is assessed at 2%; I-2 at 0.70%; and I-3 at 0.60%.