MANILA, Philippines – The Makati City government approved an ordinance lowering real property tax rates across all land classifications, effective January 1, 2025.
Makati Mayor Abby Binay, who is running for senator, signed City Ordinance No. 2025-047 amending sections of the Revised Makati Revenue Code, or City Ordinance No. 2004-A-025, on March 24, Monday.
Binay said the measure was the biggest tax reduction and lowest assessment levels in the city’s history.
“Following a comprehensive review of current tax rates and prevailing economic conditions, we have proceeded with our plan to lower tax rates for all classes of land in the city. Residents and property owners in the city will now enjoy substantial savings from the biggest tax reduction and lowest assessment levels implemented by the city government to date,” Binay said in a statement released on Monday, March 31.
“This move is expected to provide relief to residents, and boost Makati’s competitiveness as a premier investment destination for large corporations, startups, and small entrepreneurs,” she added.
Here’s the adjusted tax rate based on property type:
| Property type | Previous tax rate | New tax rate |
| Residential | 1.5% | 1% |
| Commercial | 2% | 1.5% |
| Industrial | 2% | 1.5% |
| Special | 1.5% | 0.5% |
| Additional tax for residential/commercial properties | 0.25% | 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%.
For residential properties, commercial, and industrial properties, the assessment level per classification has been adjusted as follows:
| Property classification | Previous assessment level | New assessment level |
| Residential-1 | 12% | 0.65% |
| Residential-2 | 12% | 0.30% |
| Residential-3 | 12% | 0.25% |
| Commercial-1 | 40% | 2% |
| Commercial-2 | 40% | 0.7% |
| Commercial-3 | 40% | 0.6% |
| Industrial-1 | 40% | 2% |
| Industrial-2 | 40% | 0.7% |
| Industrial-3 | 40% | 0.6% |
Despite lower property tax revenues, Binay assured Makati could handle the financial impact, as the transfer of 10 predominantly residential Enlisted Men’s Barrios (EMBO) barangays to Taguig reduced expenses, which had previously cost the city P7.9 billion in subsidies.
In 2022, the Supreme Court ruled that the EMBO barangays should be under Taguig City. The transition has been contentious, with disputes over schools, health centers, and other local facilities.
Based on 2023 assets, Makati is the 2nd richest city in the Philippines, while Taguig ranked 5th. – Rappler.com