RPGT Malaysia 2026: Real Property Gains Tax Rates, Exemptions & Calculator

If you are selling a property in Malaysia, one of the most important numbers you need to understand is RPGT — Real Property Gains Tax. Depending on how long you have held the property and your residency status, RPGT can take a significant portion of your profit, or you may owe nothing at all.

This guide covers the current RPGT rates for 2026, who qualifies for exemptions, and a full step-by-step calculation example so you know exactly what to expect before you sell.

What Is RPGT (Real Property Gains Tax)?

RPGT stands for Real Property Gains Tax, known in Malay as Cukai Keuntungan Harta Tanah (CKHT). It is a tax levied on the profit (chargeable gain) you make when you dispose of real property or shares in a real property company in Malaysia.

RPGT is governed by the Real Property Gains Tax Act 1976 and administered by the Lembaga Hasil Dalam Negeri (LHDN) — the Inland Revenue Board of Malaysia.

Who pays RPGT?

Any person or entity that sells property in Malaysia at a profit is liable for RPGT. This includes:

• Malaysian citizens and permanent residents (PRs)
• Non-citizens and foreigners
• Companies incorporated in Malaysia or abroad
• Trustees and executors of estates

RPGT applies to all types of real property — residential, commercial, industrial, and vacant land. It also applies to the disposal of shares in a real property company (a company where real property makes up 75% or more of total tangible assets).

The key word is profit. If you sell at a loss, no RPGT is payable. However, you must still file the relevant forms within the deadline.

RPGT Rates in Malaysia 2026 by Holding Period

RPGT rates depend on two factors: who you are and how long you have held the property. The holding period (also called the disposal period) is counted from the date of acquisition to the date of disposal.

RPGT Rates for Malaysian Citizens and Permanent Residents

For Malaysian citizens and PRs, the biggest takeaway is clear: if you hold a property for more than 5 years, you pay zero RPGT. This is a strong incentive for long-term ownership rather than short-term speculation.

RPGT Rates for Companies

Companies do not enjoy the 0% rate after year 5. Instead, they pay a flat 10% on gains from properties held beyond the 5th year.

RPGT Rates for Foreigners (Non-Citizens)

Foreigners face the highest RPGT burden. The rate is a flat 30% for the first 5 years — there is no graduated reduction in years 4 and 5 like there is for citizens. After the 5th year, the rate drops to 10%, but never reaches 0%.

If you are a foreign buyer or investor, this is a critical consideration. Read our full guide on foreigners buying property in Malaysia for additional details on ownership restrictions, minimum price thresholds, and state consent requirements.

Combined RPGT Rate Comparison Table

RPGT Exemptions for Malaysian Citizens

Malaysian citizens enjoy several exemptions that can significantly reduce or eliminate RPGT liability:

1. Once-in-a-Lifetime Exemption

Every Malaysian citizen is entitled to a once-in-a-lifetime full exemption from RPGT on the disposal of one private residential property. This means the entire chargeable gain is tax-free — regardless of the holding period or the profit amount.

Conditions:

• The property must be a private residence (used as your home)
• The exemption can only be claimed once in your lifetime
• You must be a Malaysian citizen at the time of disposal (PRs do not qualify for this specific exemption)
• The exemption must be elected in the RPGT return form (CKHT 1A)

This is an extremely valuable benefit. If you are selling your family home at a large profit, this exemption alone could save you tens of thousands of ringgit.

2. RM10,000 or 10% Exemption (Whichever Is Greater)

For all disposals by Malaysian citizens and PRs (where the once-in-a-lifetime exemption is not used), an automatic exemption applies:

• RM10,000, or
• 10% of the chargeable gain

Whichever amount is greater is deducted from the chargeable gain before the RPGT rate is applied. This reduces your taxable gain on every property sale.

3. Transfers Between Spouses

Transfers of property between husband and wife are treated as "no gain, no loss" transactions. This means no RPGT is payable at the time of transfer. The receiving spouse inherits the original acquisition price and date, so RPGT will only be calculated when the property is eventually sold to a third party.

4. Transfers by Way of Love and Affection

Transfers between certain family members — specifically parents to children and grandparents to grandchildren — by way of love and affection (gift) are also treated as "no gain, no loss" for RPGT purposes. This facilitates estate planning and intergenerational wealth transfer.

5. Low-Cost Housing Exemption

The disposal of low-cost residential property priced at RM200,000 or below is fully exempt from RPGT.

How to Calculate RPGT: Step-by-Step Example

Understanding the formula is essential. Here is how RPGT is calculated:

Formula:

Chargeable Gain = Disposal Price - Acquisition Price - Allowable Expenses
RPGT Payable = (Chargeable Gain - Exemption) x RPGT Rate

Allowable expenses include costs directly related to buying or selling the property:

• Legal fees for the sale and purchase agreement (SPA)
• Stamp duty on the SPA
• Real estate agent commission
• Renovation and improvement costs (with receipts)
• Valuation fees

Note: Normal maintenance and repair costs are not allowable expenses. Only capital expenditure that enhances the property qualifies.

Worked Example: Malaysian Citizen Selling in the 4th Year

Let's walk through a realistic scenario.

Scenario:

• Buyer status: Malaysian citizen
• Purchase price (2022): RM500,000
• Selling price (2026): RM700,000
• Holding period: 4 years
• Applicable RPGT rate: 20%

Allowable expenses at purchase:

• Legal fees (SPA): RM5,000
• Stamp duty: RM9,000

Allowable expenses at sale:

• Real estate agent commission (2%): RM14,000
• Legal fees: RM4,000

Renovation costs (with receipts):

• Kitchen renovation: RM15,000

Step 1: Calculate the total allowable expenses

Step 2: Calculate the chargeable gain

Chargeable Gain = RM700,000 - RM500,000 - RM47,000
Chargeable Gain = RM153,000

Step 3: Apply the 10% exemption

The citizen is entitled to an automatic exemption of RM10,000 or 10% of the chargeable gain, whichever is greater:

• RM10,000
• 10% of RM153,000 = RM15,300

The greater amount is RM15,300.

Taxable Gain = RM153,000 - RM15,300
Taxable Gain = RM137,700

Step 4: Apply the RPGT rate

RPGT Payable = RM137,700 x 20%
RPGT Payable = RM27,540

Result: The seller owes RM27,540 in RPGT. Out of a gross profit of RM200,000, the net profit after tax and expenses is approximately RM125,460.

Had the seller waited two more years (selling in year 6), the RPGT rate would be 0% and the entire gain would be tax-free.

RPGT for Foreign Sellers

Foreign property owners face a steeper RPGT structure compared to Malaysian citizens:

• 30% flat rate for disposals within the first 5 years of ownership
• 10% rate for disposals from the 6th year onwards
• No once-in-a-lifetime exemption — this benefit is exclusive to Malaysian citizens
• No RM10,000 / 10% automatic exemption for disposals within the first 5 years

This means a foreigner selling a property in year 3 at the same profit as the example above would pay significantly more:

Chargeable Gain = RM153,000
RPGT Rate = 30%
RPGT Payable = RM153,000 x 30% = RM45,900

That is RM18,360 more than a Malaysian citizen selling the same property in year 4. For foreign investors, the combination of higher RPGT rates, higher stamp duty (8% for foreigners in 2026), and minimum purchase price thresholds makes it essential to plan your exit strategy carefully.

For a comprehensive overview of the rules, costs, and restrictions for non-citizens, see our guide on foreigners buying property in Malaysia.

How to File and Pay RPGT

Filing Deadline

Both the seller (disposer) and the buyer (acquirer) must submit RPGT forms to LHDN within 60 days of the date of disposal (typically the date the SPA is signed).

Required Forms

Forms can be submitted online through LHDN's e-CKHT system or manually at any LHDN branch.

Retention Sum (Agent Payment)

When a property is sold, the buyer's lawyer is required to retain a portion of the sale price and remit it directly to LHDN as an advance RPGT payment:

• Malaysian citizens and PRs: 3% of the sale price (or the full RPGT amount, whichever is lower)
• Foreigners: 7% of the sale price (or the full RPGT amount, whichever is lower)
• Companies: 7% of the sale price (or the full RPGT amount, whichever is lower)

This retention is deducted at the point of sale. If the actual RPGT liability is less than the retention sum, you will receive a refund from LHDN after assessment. If it is more, you must pay the difference.

Late Filing Penalties

Failure to file within the 60-day deadline attracts penalties:

• Late submission: A penalty of up to three times the amount of tax payable, or imprisonment, or both
• Incorrect returns: Additional penalties may be imposed for understatement of gains

Always ensure your lawyer or tax agent submits the RPGT forms promptly. Most property lawyers handle RPGT filing as a standard part of the conveyancing process.

FAQs About RPGT Malaysia

Q: Does RPGT apply to inherited property?

Yes, but with an important distinction. When you inherit a property, no RPGT is triggered at the point of inheritance — it is treated as a transfer with no gain and no loss. However, when you later sell the inherited property, RPGT applies. The acquisition price is deemed to be the market value at the date of death of the original owner, and the holding period is counted from the date of death. Malaysian citizens can still use their once-in-a-lifetime exemption on the sale of an inherited private residence.

Q: What happens if I sell at a loss?

If your disposal price is lower than your acquisition price plus allowable expenses, you have made a loss and no RPGT is payable. You must still file the CKHT forms within 60 days. Losses from RPGT disposals cannot be carried forward or set off against future gains — each disposal is assessed independently.

Q: Does RPGT apply to commercial property?

Yes. RPGT applies to all types of real property in Malaysia, including commercial shops, offices, factories, industrial land, agricultural land, and vacant plots. The same rates and holding periods apply. Commercial properties are not eligible for the once-in-a-lifetime exemption, which is restricted to private residences.

Q: How is RPGT calculated for jointly owned property?

For jointly owned property, the chargeable gain is apportioned according to each owner's share of ownership. Each co-owner files their own CKHT forms and pays RPGT on their respective portion of the gain. Each co-owner can also independently claim exemptions they are entitled to — for example, one co-owner may use their once-in-a-lifetime exemption while the other does not.

Thinking about selling your property? Make sure you understand your full tax liability before you list. If you are buying your next home, explore listings across Malaysia on SuperHomes:

• Kuala Lumpur
• Petaling Jaya
• Johor Bahru
• Penang