In this paper, an RFID tag localization method based on phase particle filtering using dual-frequency phases is proposed. In order to reduce the phase error due to the multipath effect, frequency hopping technique is employed to emulate a large virtual bandwidth, and multipath suppression algorithm (MSA) is realized with the help of coarse estimation distance obtained by Inverse Fast Fourier Transform (IFFT) operation. Then an optimal dual-frequency selection strategy based on MSA is proposed. The phase ambiguity is solved by particle filter with the optimal dual-frequency phase information, which achieves high accuracy localization. Experhnental results show that the system can achieve a median localization error of 6.68 cm.