How Much RPGT Will You Pay in 2026?

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

In 2026 a Malaysian citizen or permanent resident pays RPGT of 30% on the gain if they sell within three years, 20% in the fourth year, 15% in the fifth and 0% from the sixth year. Malaysian companies pay the same until year five, then 10%. Foreigners and foreign companies pay 30% for five years, then 10%. The rates have not changed since 1 January 2022.

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 who you are, RPGT can take a significant portion of your profit, or you may owe nothing at all.

This guide is the 2026 rate reference: the rate tables for each type of seller, the retention sum the buyer withholds, the exemptions, a full step-by-step calculation, and the filing rules under self-assessment. If you are a homeowner working out what you will actually walk away with, our RPGT guide for sellers walks through net proceeds and timing step by step.

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 disposes of property in Malaysia is within the RPGT net. 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 return within the deadline, because every disposal has to be reported.

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. For a sale under a written agreement, both dates are generally the dates of the Sale and Purchase Agreements (SPA), not the dates the title was transferred or the keys handed over.

The rates below are set by Schedule 5 of the RPGT Act and have applied since 1 January 2022. Budget 2026 did not change them. (Source: LHDN, RPGT rates by Schedule 5 category, effective 1 January 2022; checked 30 Sep 2026.)

RPGT Rates for Malaysian Citizens and Permanent Residents

These are the Part I rates, which also cover partnerships and any disposer not in Part II or Part III.

For Malaysian citizens and PRs, the biggest takeaway is clear: if you dispose of a property in the sixth year of ownership or later, you pay zero RPGT. The 0% band returned on 1 January 2022; from 2019 to 2021 citizens paid 5% from the sixth year. You still have to file a return for a 0% sale.

RPGT Rates for Companies

These are the Part II rates, for companies incorporated in Malaysia, trustees of trusts and bodies of persons registered in Malaysia.

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. Companies also do not get the RM10,000 or 10% exemption that individuals receive, so the rate applies to the whole chargeable gain. A company incorporated outside Malaysia is not in this table: it falls under Part III with foreigners.

RPGT Rates for Foreigners (Non-Citizens)

These are the Part III rates, for individuals who are neither citizens nor permanent residents, companies not incorporated in Malaysia, and executors of the estates of such individuals.

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%. One narrow exception: PwC's Malaysia tax summary lists preferential citizen-level rates for non-citizens disposing of property in the Forest City Special Financial Zone under agreements executed from 1 September 2024 to 31 July 2034, so check with a tax adviser if that applies to you.

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

(Sources: LHDN, RPGT rates page and disposer and acquirer responsibilities page; RPGT Act 1976, Schedule 5 and Schedule 4 paragraph 2; checked 30 Sep 2026.) For the full rate history and how each Schedule 5 category is defined, see our RPGT rate schedule reference.

RPGT Exemptions for Malaysian Citizens

Malaysian citizens and permanent residents enjoy several exemptions that can significantly reduce or eliminate RPGT liability. Our RPGT exemptions guide covers each one in more depth.

1. Once-in-a-Lifetime Exemption

Every Malaysian citizen and permanent resident can elect, once in their lifetime, to exempt the whole chargeable gain on the disposal of one private residence under Section 8 of the RPGT Act — regardless of the holding period or the profit amount.

Conditions:

• The property must be a private residence: a building owned by you and occupied or intended to be occupied as a place of residence
• The exemption can only be claimed once in your lifetime, and the election is irrevocable
• You must be a Malaysian citizen or permanent resident at the time of disposal
• The election is made on Form CKHT 3, submitted through e-CKHT with your return

This is an extremely valuable benefit, which is why it is usually wasted if you use it on a sale that would have been taxed at 0% anyway. From the sixth year a citizen pays nothing, so save the election for an early sale with a large gain.

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

On every disposal by an individual (citizen, PR or foreigner), Schedule 4 paragraph 2 exempts:

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

Whichever amount is greater is deducted from the chargeable gain before the RPGT rate is applied. It applies to each disposal automatically. Companies do not get it.

3. Transfers Between Spouses

Transfers of property between husband and wife are treated as "no gain, no loss" transactions under Schedule 2 paragraph 3, provided the person giving the property is a Malaysian citizen. No RPGT is payable at the time of transfer. The receiving spouse takes over 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

Gifts between parents and children and grandparents and grandchildren are also treated as "no gain, no loss" for RPGT purposes when the giver is a citizen. The recipient inherits the giver's original cost. Stamp duty is a separate question: a transfer between spouses is exempt, and a parent-child or grandparent-grandchild gift to a Malaysian citizen is exempt on the first RM1 million of market value, with a 50% remission on the balance. (Sources: RPGT Act 1976, Schedule 2 paragraph 3; Stamp Duty (Exemption) (No. 3) Order 2023, in force 1 April 2023; checked 30 Sep 2026.)

5. Low-Cost Housing Exemption

You may still read that homes of RM200,000 or less are exempt. That exemption only ever applied to disposals by citizens from the sixth year, and since 1 January 2022 the sixth-year rate for citizens is already 0%. It no longer changes anyone's tax bill, so do not rely on it for an earlier sale.

How to Calculate RPGT: Step-by-Step Example

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

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

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

Note: Normal maintenance and repair costs are not allowable expenses, and neither are loan interest, maintenance fees, assessment or quit rent. 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:

• Seller status: Malaysian citizen
• Purchase SPA dated 1 September 2022: RM500,000
• Sale SPA dated 1 March 2026: RM700,000
• Holding period: 3 years and 6 months, which is the 4th year
• 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 = 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, so the taxable gain is RM153,000 − RM15,300 = RM137,700.

Step 4: Apply the RPGT rate

RPGT payable = RM137,700 x 20% = 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 until after 1 September 2027 (the fifth anniversary of the purchase SPA) to sign the sale SPA, the sale would fall in the sixth year, the RPGT rate would be 0% and the entire gain would be tax-free. Signing after 1 September 2026, in the fifth year, would have cut the bill to RM20,655 at 15%.

SuperHomes Data: RPGT on a Kuala Lumpur Median Home in Every Year

The median asking price across for-sale listings in Kuala Lumpur on SuperHomes is RM462,000 (n=137; SuperHomes listings, Sep 2026). Suppose that home was bought for RM380,000. Allowable costs of about RM21,580 (RM6,600 MOT stamp duty and about RM5,000 legal fees on purchase, about RM9,980 agent commission including service tax on sale) leave a chargeable gain of RM60,420. For an individual the RM10,000 exemption is larger than 10% (RM6,042), so the taxable gain is RM50,420.

The foreigner columns are illustrative: foreign buyers usually face state minimum purchase prices well above RM462,000 in Kuala Lumpur. Homes around the median are common in Cheras and Bukit Jalil, where many owners are now deciding whether to sell before or after their fifth year. Run your own numbers in the RPGT calculator.

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 — Section 8 is only for citizens and permanent residents
• The RM10,000 or 10% exemption still applies to foreign individuals, because Schedule 4 paragraph 2 covers every individual; it does not apply to foreign companies
• 7% retention of the price is withheld by the buyer, against 3% for citizens

This means a foreigner selling in the same example above, but in the third year, would pay:

That is RM13,770 more than the Malaysian citizen selling the same property in the fourth year, and a foreigner selling in the fourth or fifth year still pays the same RM41,310. For foreign investors, the combination of higher RPGT rates, higher stamp duty (a flat 8% on residential transfers to foreigners from 1 January 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

Since 1 January 2025 RPGT has been self-assessed: the seller computes the tax, files the return electronically, and the return is treated as the assessment. There is no longer a wait for LHDN to issue an assessment before you pay. Both the seller (disposer) and the buyer (acquirer) must submit returns to LHDN within 60 days of the date of disposal (usually the date of the sale SPA), and the seller must pay any tax within 90 days of the disposal date. (Sources: RPGT Act 1976 as amended by the Finance Act (No. 2) 2023, self-assessment from 1 January 2025; LHDN disposer and acquirer responsibilities page; checked 30 Sep 2026.)

Required Forms

Since 1 January 2025 these returns must be submitted online through e-CKHT on the MyTax portal; paper filing at a branch is no longer accepted. Keep your records for seven years.

Retention Sum (Buyer's Payment)

When a property is sold, the buyer (in practice the buyer's lawyer) must retain part of the price and remit it to LHDN within 60 days of the disposal as an advance payment of the seller's RPGT. The amount is the stated percentage of the total consideration or the whole of the cash consideration, whichever is lower:

The retention is credited against the seller's RPGT. If the actual RPGT is less than the retention sum, the seller claims the excess back from LHDN; if it is more, the seller pays the balance within the 90-day deadline. A buyer who fails to remit faces a penalty of 10% of the amount not paid. (Source: RPGT Act 1976 s.21B; LHDN disposer and acquirer responsibilities page; checked 30 Sep 2026.)

Late Filing Penalties

Failure to meet the deadlines has real costs:

• Late payment: RPGT not paid within 90 days of disposal attracts a 10% increase on the unpaid amount under the self-assessment rules
• Late or no return: failing to submit the return is an offence under the RPGT Act and can lead to fines or penalties
• Incorrect returns: understating the gain exposes you to additional tax and penalties when LHDN audits the return

Always ensure your lawyer or tax agent submits the RPGT returns promptly. Most property lawyers handle RPGT filing as a standard part of the conveyancing process, but under self-assessment the numbers are your responsibility.

Common RPGT Mistakes

1. Counting years by calendar year. The holding period runs from the purchase SPA date to the sale SPA date. Signing a sale SPA a few weeks early can push you into a higher-rate year.
2. Assuming a company pays 0% after five years. Companies pay 10% from the sixth year and get no RM10,000 or 10% exemption.
3. Using the Section 8 election on a sixth-year sale. A citizen already pays 0% then; the election is wasted and cannot be undone.
4. Not keeping receipts. Renovation you cannot prove is not deductible, and the tax is charged on the undocumented gain.
5. Skipping the return because no tax is due. A loss, an exempt sale and a 0% sale all still need a return within 60 days.

FAQs About RPGT Malaysia

Q: What is the RPGT rate for a company in 2026?

A Malaysian company pays 30% on a gain from a disposal within three years, 20% in the fourth year, 15% in the fifth year and 10% from the sixth year. There is no 0% band and no RM10,000 or 10% exemption for companies. A company incorporated outside Malaysia pays 30% for five years and 10% after that, the same as a foreign individual.

Q: What is the RPGT rate for foreigners in 2026?

Foreign individuals and foreign companies pay 30% on a disposal within five years and 10% from the sixth year onwards. They never reach 0%. Foreign individuals still get the RM10,000 or 10% exemption on each disposal, but not the once-in-a-lifetime private residence exemption, and the buyer withholds 7% of the price as a retention sum.

Q: What RPGT exemptions are available in 2026?

Individuals get the greater of RM10,000 or 10% of the chargeable gain on every disposal. Citizens and permanent residents can also make one irrevocable election to exempt the whole gain on a private residence (Form CKHT 3), and gifts between spouses, parents and children, or grandparents and grandchildren are no gain, no loss when the giver is a citizen. From the sixth year, citizens pay 0% anyway.

Q: What is Form CKHT 1A and when is it due in 2026?

CKHT 1A is the seller's RPGT return for a disposal of real property. It must be submitted through e-CKHT on MyTax within 60 days of the disposal date, and any tax must be paid within 90 days. The buyer files a separate return, CKHT 2A, within 60 days of the acquisition, and remits the retention sum.

Q: How much is the RPGT retention sum for a company in 2026?

When a Malaysian company sells, the buyer retains 5% of the price if the company sells within three years of acquiring the property and 3% from the fourth year. When a company incorporated outside Malaysia sells, the retention is 7%. The buyer must remit it to LHDN within 60 days of the disposal, and it is credited against the company's RPGT.

Q: Does RPGT apply to inherited property?

No RPGT is triggered by the death itself or by the property passing to the heirs. When you later sell, RPGT applies, with the acquisition price deemed to be the market value at the date of death and the holding period counted from the date of death. Malaysian citizens and PRs 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?

No RPGT is payable, but you must still file the return (CKHT 1A with CKHT 3) within 60 days. The allowable loss can be set off against chargeable gains on other real property disposals in the same year of assessment, and any unabsorbed balance is carried forward to later years until used up. For individuals, the loss is absorbed after the RM10,000 or 10% exemption.

Q: Does RPGT apply to commercial property or jointly owned property?

Yes. RPGT applies to shops, offices, factories and land at the same rates and holding periods, but the once-in-a-lifetime exemption only covers a private residence. For jointly owned property, the gain is split according to each owner's share, and each co-owner files their own return and claims their own exemptions.

Thinking about selling your property? Make sure you understand your full tax liability before you list. Our RPGT guide for sellers shows how the tax, the retention sum and your selling costs come off your sale price. If you are buying your next home, explore current listings in Kuala Lumpur, Cheras, Petaling Jaya and Penang.