The community tax certificate fee begins at ₱5 for an individual and ₱500 for a corporation, with extra amounts added based on income, gross receipts, and the assessed value of real property. The law caps the total at ₱5,000 for individuals and ₱10,000 for corporations, so no cedula can cost more than ₱5,005 for a person or ₱10,500 for a company. Most wage earners pay only a few hundred pesos.
How Much an Individual Pays
Every qualifying individual pays a flat basic tax of ₱5. On top of that, you pay ₱1 for every ₱1,000 of income you earned during the preceding year, whether from employment, business, professional practice, or property. That additional amount is capped at ₱5,000 regardless of how high your income or property values run.1ChanRobles. The Local Government Code of the Philippines – Section 157
Some worked numbers make this concrete. Someone who earned ₱300,000 in gross income last year owes ₱5 basic plus ₱300 additional, for ₱305 total. Someone earning ₱6,000,000 hits the ceiling, paying ₱5,005. For married couples, the additional tax is computed on their combined property holdings and combined gross receipts or earnings.
You owe the community tax if you are 18 or older and any of the following applies: you have worked on a wage or salary basis for at least 30 consecutive working days during the calendar year, you are engaged in any business or occupation, you own real property with an assessed value of ₱1,000 or more, or you are required by law to file an income tax return. Meeting even one of those conditions makes you liable.1ChanRobles. The Local Government Code of the Philippines – Section 157
How Much a Corporation Pays
Corporations start with a basic tax of ₱500. On top of that, they pay additional tax on two separate bases:
- ₱2 for every ₱5,000 worth of real property owned in the Philippines during the preceding year, using assessed values in local assessment rolls.
- ₱2 for every ₱5,000 of gross receipts or earnings from business in the Philippines during the preceding year. Dividends received from another corporation count as part of gross receipts.
The combined additional tax across both bases cannot exceed ₱10,000, so the absolute maximum any corporation pays is ₱10,500. This applies to every corporation doing business in the Philippines, whether domestic or resident foreign.2LawPhil. Republic Act 7160 – Section 158
The ₱1 Voluntary Cedula
If you don’t meet any of the four liability triggers, you are not required to pay the community tax. You can still get a certificate voluntarily by paying ₱1. That option matters because many government offices and private institutions ask to see a cedula even when the law does not technically require you to hold one.3Supreme Court of the Philippines E-Library. Republic Act 7160 – Sections 159 and 162
Foreign diplomats, consular officials, and transient visitors staying three months or less are exempt entirely.
Deadline and Late Payment Penalty
The community tax accrues on January 1 and must be paid no later than the last working day of February. Miss that date and you become delinquent, at which point 24% interest per annum runs on the unpaid amount from the due date until you pay.4Supreme Court of the Philippines E-Library. Republic Act 7160 – Section 161
Timing rules for new liabilities work like this. If you turn 18 or lose an exemption on or before June 30, you owe the tax for that year; if the change happens on or before March 31, you have 20 days to pay without penalty. If you turn 18 or first become liable on or after July 1, you are not subject to the tax until the following year. The same calendar applies to newly established corporations.
Where You Pay and What to Bring
Individuals pay in their place of residence and corporations at the location of the principal office, typically at the City or Municipal Treasurer’s Office. Many local governments also authorize barangay treasurers to collect the tax, so a trip to the barangay hall may be enough.5LawPhil. Republic Act 7160 – Section 164
Bring a valid government-issued photo ID. If your income triggers the additional tax, bring proof of earnings: BIR Form 2316 works well for employees because it shows total compensation for the year, and payslips or a filed income tax return also work.6Quezon City Government. How to Get Cedula for Individuals If you own real property, bring the most recent tax declaration or assessment record showing the assessed value, which is the figure used to compute the additional tax on property.
You fill out the community tax declaration form at the office, present your documents, and pay at the cashier. Some cities, including Manila, now let you apply and pay online before picking up the printed certificate. After payment, you sign and affix your thumbmark on all copies in the presence of the issuing officer.7Municipality of Angono. Issuance of Community Tax Certificate (Cedula) The certificate is valid through December 31 of the year it was issued, so the fee resets each January.