Since evacuations began earlier this month, more than 370,000 people were affected by the eruption.
The fallout from the blasts blanketed nearby areas, affecting an estimated 15,790 hectares of land used for pineapple, coffee and cacao farming.
However, Taal’s lowered alert level does not indicate the volcano’s activity has abated enough to be completely ignored.
Renato Solidum, head of PHIVOLCS, said: “We have to be careful of Taal because the danger it may still bring, so at the lower level, there should be heightened preparedness.
“People should brace for rapid evacuations.”