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Legal Intermediate

Documentary Stamp Tax (DST) Explained

Understand DST on real estate sales, who pays it, and how it's computed against the higher of zonal value or selling price.

6 min read
Filipino Rentals Editorial

In this guide

  1. What is DST?
  2. How DST is computed
  3. Who pays the DST?

What is DST?

Documentary Stamp Tax is a tax on documents, instruments, loan agreements, and papers that evidence the sale, acceptance, assignment, or transfer of property. For real estate, the rate is 1.5%.

How DST is computed

DST = 1.5% × (higher of selling price, zonal value, or assessor's FMV). For a ₱5M sale where zonal value is ₱5.5M, DST = ₱82,500.

Who pays the DST?

DST is typically paid by the buyer, but this is negotiable. It must be paid within 5 days after the close of the month when the sale occurred.

Quick Tips

  • Use this site's DST calculator to estimate your liability.
  • Late payment attracts a 25% surcharge plus interest.
  • Always factor DST into your closing cost budget.

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