Free tool · Philippines
Business permit fee estimator.
Type last year's gross sales, the type of business and your LGU's fees. Get the local business tax, the fire safety inspection fee and the estimated total for the renewal.
Calculator
Business permit and business tax estimator
Estimated total for the year
₱55,025.00
For a retailer in a city with ₱3,000,000 gross sales last year, the local business tax is about ₱51,000.00 at the Local Government Code's maximum, and with ₱3,500.00 in permit fees and a ₱525.00 fire safety inspection fee the estimated total is ₱55,025.00.
| Local business tax | ₱51,000.00 |
|---|
| Mayor's permit fee | ₱2,000.00 |
|---|---|
| Sanitary, garbage and other fees | ₱1,500.00 |
| Fire safety inspection fee (15%) | ₱525.00 |
| Estimated total for the year | ₱55,025.00 |
|---|
How it was worked out
- Class of business. A retailer is taxed under Section 143(d) of the Local Government Code, on gross sales or receipts of the preceding calendar year: ₱3,000,000.00. (Republic Act No. 7160, the Local Government Code, Section 143: tax on business)
- Local business tax. A retailer pays at most 2% on the first ₱400,000 and 1% on the rest, and a city may charge up to 50% more, so 3% and 1.5%: 3% × ₱400,000.00 + 1.5% × ₱2,600,000.00 = ₱51,000.00. (Republic Act No. 7160, Section 151: scope of a city's taxing powers)
- Permit fees. Mayor's permit ₱2,000.00 + sanitary, garbage and other fees ₱1,500.00 = ₱3,500.00. These are set by your LGU's revenue code.
- Fire safety inspection fee. 15% of the regulatory fees, never less than ₱500: 15% × ₱3,500.00 = ₱525.00. (Republic Act No. 9514, the Fire Code of the Philippines, and its IRR: fire safety inspection fee)
- Total. ₱51,000.00 + ₱3,500.00 + ₱525.00 = ₱55,025.00.
- Every LGU sets its own rates and fees by ordinance, within the Code's limits. This is an estimate: your city or municipal treasurer's assessment is the figure you pay.
- Below the top bracket, the Code taxes manufacturers, wholesalers and contractors by a schedule of fixed amounts. Enter your LGU's rate for a closer figure.
- Barangay clearance, community tax, signage, zoning and other local fees are left out. Exporters and sellers of essential commodities pay half the rates.
- The tax can usually be paid in quarterly installments; renewal is due in January.
Rates and rules as of November 8, 2026. A guide, not legal or tax advice.
Rate changes
Know the day the rates change.
Questions
Asked and answered.
How is the business tax for a business permit computed?
The LGU applies its rate to the gross sales or receipts of the preceding calendar year, by class of business. Each LGU sets the rate by ordinance, up to the limits in Section 143 of the Local Government Code.
How much more can a city charge than a municipality?
Under Section 151 of the Local Government Code, a city may levy business taxes up to 50% above the maximum rates set for municipalities.
How much is the fire safety inspection fee?
Under the Fire Code IRR, it is 15% of the regulatory fees the LGU charges for the business permit, and never less than ₱500. The Bureau of Fire Protection issues the Fire Safety Inspection Certificate.
When is the business permit renewed?
Within the first 20 days of January in most LGUs. Late renewal usually carries a surcharge and interest under the LGU's revenue code.
From LGU
This is one figure LGU works out for you.
LGU is Tekhx's ready-made business permit system for Philippine businesses. It does this, and everything around it, for every record, every day.