RPGT in Malaysia 2026: Rates, Calculation and Exemptions
Property Lab editorial teamPublished Updated 7 min read
Contents
RPGT (Real Property Gains Tax) in Malaysia is a tax on the profit when you sell property. For Malaysian citizens and permanent residents in 2026, the rate is 30% if you sell within three years, 20% in the fourth year, 15% in the fifth and 0% from the sixth year. Foreigners pay 30% for five years and 10% after that. Individuals can deduct RM10,000 or 10% of the gain, whichever is higher, before the rate applies.
RPGT = (disposal price − acquisition price − exemption) × rate for how long you held the property.
Citizens: 0% from the sixth year. Both buyer and seller file within 60 days, and the buyer usually holds back 3% of the price for LHDN.
What are the RPGT rates in 2026?
RPGT applies to everyone, resident or not, who makes a gain on selling real property in Malaysia. The rate depends on who you are and how long you held the property.
| When you sell | Citizens and PRs | Foreigners | Malaysian companies |
|---|---|---|---|
| Within 3 years | 30% | 30% | 30% |
| 4th year | 20% | 30% | 20% |
| 5th year | 15% | 30% | 15% |
| 6th year onward | 0% | 10% | 10% |
Per PwC's 2026/2027 Malaysian Tax Booklet. "Foreigners" means non-citizens who are not permanent residents; companies not incorporated in Malaysia pay the same rates as foreigners.
The holding period runs from the date you acquired the property to the date you dispose of it. The disposal date is normally the date of the written sale agreement (the SPA), not the date the title is transferred.
How do you calculate RPGT?
- Disposal price: the sale price, minus allowable selling costs such as agent commission and legal fees, and minus documented spending that added value to the property.
- Acquisition price: what you paid, plus allowable buying costs such as legal fees and stamp duty on the purchase.
- Gain: disposal price minus acquisition price.
- Exemption: individuals deduct RM10,000 or 10% of the gain, whichever is higher.
- Tax: the chargeable gain that is left × the rate for your holding period.
Not every cost counts. Mortgage interest, legal fees and stamp duty for the loan agreement, moving and furnishing costs, and renovation claims you cannot document are not allowable.
A worked example from a 2026 guide, for a citizen selling in the fourth year:
| Step | RM |
|---|---|
| Sale price | 700,000 |
| Less agent and legal costs | (25,000) |
| Less value-adding renovation | (40,000) |
| Disposal price | 635,000 |
| Purchase price + legal fees and stamp duty | 515,000 |
| Gain | 120,000 |
| Less exemption (10% of gain) | (12,000) |
| Chargeable gain | 108,000 |
| RPGT at 20% (4th year) | 21,600 |
The buyer's 3% retention on RM700,000 is RM21,000, so the seller would pay the remaining RM600.
How much RPGT will you pay? Examples
| Gain (after costs) | Within 3 yrs | 4th year | 5th year | 6th year+ |
|---|---|---|---|---|
| RM50,000, citizen | 12,000 | 8,000 | 6,000 | 0 |
| RM50,000, foreigner | 12,000 | 12,000 | 12,000 | 4,000 |
| RM100,000, citizen | 27,000 | 18,000 | 13,500 | 0 |
| RM100,000, foreigner | 27,000 | 27,000 | 27,000 | 9,000 |
| RM300,000, citizen | 81,000 | 54,000 | 40,500 | 0 |
| RM300,000, foreigner | 81,000 | 81,000 | 81,000 | 27,000 |
Illustrative RPGT in RM for an individual, after deducting RM10,000 or 10% of the gain (whichever is higher). Does not include the once-in-a-lifetime private residence exemption, which would make the citizen's tax zero if claimed.
What RPGT exemptions are there?
- RM10,000 or 10%: every individual, citizen or foreigner, can deduct RM10,000 or 10% of the chargeable gain, whichever is greater, on each disposal. Companies do not get this.
- One private residence, once in a lifetime: a citizen or permanent resident can choose to exempt the gain on the sale of one private residence. The election is made in writing and cannot be undone, so think carefully about which sale to use it on.
- Gifts within the family: a gift between husband and wife, parent and child, or grandparent and grandchild is treated as no gain and no loss, provided the person giving is a citizen. Gifts between siblings are not covered.
- Other cases: property inherited from a deceased person, transfers between spouses, gifts to the government or approved charities, and compulsory acquisition are treated as having no taxable gain.
Exempt or no-gain disposals still need to be reported. The 2026 guide says this is done using form CKHT 3, which is also used for the private residence election.
Filing, the 3% retention and deadlines
- Seller and buyer file returnsWithin 60 days
- Buyer remits retention to LHDNWithin 60 days
- Seller pays any balanceWithin 90 days
All counted from the date of disposal. Returns are filed online through e-CKHT on MyTax.
Retention (the "3%"): when the price is paid wholly or partly in cash, the buyer must hold back the lowest of: the whole cash price, the seller's self-assessed RPGT, or a set percentage of the price. That percentage is 3% for most individual sellers, 7% if the seller is a foreigner (or a company not incorporated in Malaysia), and 5% for a Malaysian company selling within three years. The amount is credited against the seller's tax.
Self-assessment: under the self-assessment system, the return you file is treated as the assessment. A 2026 guide says this applies to disposals from 1 January 2025, and that e-CKHT filing on MyTax has been mandatory since then.
Penalties (per the same guide): failing to file within 60 days can cost up to three times the tax; an incorrect return up to 100% of the tax under-declared; late payment adds 10% to the unpaid amount.
Checklist before you sell
- Find your purchase SPA date and work out which year of ownership the new SPA date falls in.
- Collect receipts for purchase legal fees, stamp duty, agent fees and any value-adding renovation.
- Decide whether to use your once-in-a-lifetime private residence exemption on this sale.
- Work out the gain, the RM10,000 or 10% exemption and the tax, and compare it with the 3% (or 7%) your buyer will hold back.
- Make sure your lawyer files your CKHT return and the buyer's lawyer files theirs within 60 days.
- Pay any balance within 90 days of the disposal date.
FAQ
What is the RPGT rate in Malaysia in 2026?
For citizens and permanent residents: 30% within three years, 20% in the fourth year, 15% in the fifth and 0% from the sixth year. Foreigners pay 30% for the first five years and 10% from the sixth.
How is RPGT calculated in Malaysia?
Take the sale price less selling costs and value-adding renovation, subtract the purchase price plus buying costs, deduct RM10,000 or 10% of the gain (for individuals), then apply the rate for your holding period.
Do I pay RPGT if I sell after 5 years?
Not if you are a Malaysian citizen or permanent resident: the rate is 0% from the sixth year. Foreigners and Malaysian companies pay 10% from the sixth year.
What is the RPGT once-in-a-lifetime exemption?
A citizen or permanent resident can choose to exempt the gain on selling one private residence. The election is made in writing, is irrevocable and can be used only once.
References
- PwC Malaysia: 2026/2027 Malaysian Tax Booklet, taxes on capital gainsUsed for the RPGT rates, date of disposal, 60-day returns, self-assessment, the 3%/5%/7% retention, the 90-day payment rule and the exemptions and no-gain transfers.
- StashAway: Real Property Gains Tax (RPGT) Malaysia, 2026 rates and exemptions (August 2026)Used for allowable and non-allowable costs, the worked example, forms CKHT 1A, 2A and 3, e-CKHT on MyTax, the 2025 self-assessment start and penalties.
- Low & Partners: RPGT and available exemptionsUsed to confirm the private residence, family gift and RM10,000 or 10% exemptions.
- Halim Hong & Quek: Real Property Gains Tax in Malaysia (November 2023)Used to confirm that the private residence election is in writing and irrevocable, and that sibling transfers are excluded.
Tax rules change with each Budget and Finance Act. Check LHDN's current RPGT guidance on MyTax, or ask a tax agent, before you sell.
This article is general information only, not tax or legal advice. Examples are illustrative and based on the assumptions stated.
General information only, not legal, tax or investment advice. Rules and rates change; check the official source linked below before you act.
Related news
MBSB Backs Sunway REIT For 2027 Despite 3Q26 Profit Dip
IOIPG Malaysia REIT IPO Offers 12.5% Upside At RM1.08 Fair Value Ahead Of Nov 25 Listing
Hektar REIT Cancels EGM For Proposed International School Acquisition
YNH Says Resolving Funding Priorities, After MARC Places RM170 Million Sukuk Rating Under Negative Watch
Related guides
Property Viewing Checklist Malaysia: 10 Things Buyers Miss
9 Checks When Choosing a Condo in KL: MRT Access, Management and Flood Risk
Buying Subsale in Malaysia: 7 Common Mistakes to Avoid
6 Checks Before Buying a New Launch: How to Avoid Abandoned Projects in Malaysia
Home Loans for Foreigners in Malaysia 2026: 5 Conditions Banks Check