The Department of Finance (DOF) has assured property owners and housing developers that the deferred rollout of the Real Property Valuation and Assessment Reform Act (RPVARA) will not automatically lead to higher property taxes, giving local governments more time to prepare for the overhaul.
Finance Undersecretary Michael Peter Alejandro said the implementation of RPVARA will be delayed by 12 to 24 months as the government works to ensure local systems are ready.
Speaking for Finance Secretary Frederick Go at the OSHDP Affordable Housing Summit 2026, Alejandro also reiterated the DOF’s push to reduce the cost of doing business and streamline processes for housing developers.
The delay comes as property owners and developers assess how updated valuations could affect taxes and housing costs.
Finance Undersecretary Krystal Lyn Uy-Sia, speaking at a separate forum, stressed that a higher property valuation under RPVARA does not automatically mean a higher tax bill.
She said real property tax liabilities are determined by three factors, market value, assessment level, and tax rate.
Local government units retain the authority to adjust assessment levels and tax rates, allowing them to manage the impact of updated valuations on taxpayers and support investment.
The DOF said the additional time will focus on operational readiness, with the reform to be implemented once local governments have the systems and capacity needed to carry it out.
RPVARA is designed to establish a standardized, transparent, and credible property valuation system nationwide, addressing long-standing differences in how real estate is assessed across local governments.
The reform is also expected to improve the reliability of property valuations for taxation, investment, and other economic decisions.
For housing developers, the government said the transition should ultimately support a more predictable investment environment and reduce administrative friction.
The DOF said a stronger valuation framework would also help local governments generate revenues more reliably and improve their capacity to fund public services.
For taxpayers, the message is that RPVARA is a valuation reform, not an automatic tax increase, with the final tax impact still depending on decisions made by local governments.
