A Malaysian citizen selling in 2026 pays RPGT of 30% of the net gain within three years of buying, 20% in the fourth year, 15% in the fifth and nothing from the sixth year, after deducting RM10,000 or 10% of the gain. Your buyer's lawyer withholds 3% of the price for LHDN, and you file the return within 60 days.
Selling a property in Malaysia is rarely as simple as agreeing on a price and collecting the proceeds. One of the biggest surprises for first-time sellers is Real Property Gains Tax, or RPGT — a tax charged on the profit you make when you dispose of property. If you bought a house for RM400,000 and sell it for RM600,000, the taxman wants a slice of that RM200,000 gain, and the amount depends heavily on how long you held the property.
This guide walks you through RPGT as a seller in 2026: the rates, the calculation, the exemptions you may qualify for, the retention your buyer's solicitor will withhold at completion, what you actually walk away with, and how to file the CKHT returns with LHDN within the deadline. Get this right and you keep more of your sale proceeds while staying fully compliant. If you want the full rate tables for companies and foreigners, see our RPGT 2026 rate guide.
What Is RPGT and When Does It Apply?
RPGT (Real Property Gains Tax, or Cukai Keuntungan Harta Tanah — CKHT in Malay) is a tax administered by the Inland Revenue Board of Malaysia (LHDN) under the Real Property Gains Tax Act 1976. It is triggered whenever there is a disposal of a chargeable asset — most commonly when you sell a house, condominium, piece of land, or shares in a real property company (RPC).
The most important thing to understand is that RPGT is charged on your gain, not on the sale price. The gain is the difference between your disposal price (what you sell for) and your acquisition price (what you originally paid), after allowable adjustments. If you sell at a loss, there is no chargeable gain and no RPGT is payable — although you still have a filing obligation, which we cover below.
A "disposal" is broader than a straightforward sale. It can include:
- Selling property on the open market or via subsale
- Transferring property by way of gift (gifts between spouses, parents and children, or grandparents and grandchildren by a citizen are treated as no gain, no loss)
- Disposing of shares in a real property company
- Certain exchanges or transfers between parties
The date of disposal is usually the date of the Sale and Purchase Agreement (SPA), and the date of acquisition is usually the date of your purchase SPA. The gap between the two determines your holding period and therefore your tax rate. Because the rate drops sharply the longer you hold, timing your sale can materially change your tax bill.
RPGT Rates by Holding Period (2026 Table)
RPGT rates are tiered by how many years you held the property before disposing of it. The rate also differs depending on whether you are a Malaysian citizen or permanent resident, a foreigner (non-citizen), or a company. The table below is the rate structure in force for 2026.
| Holding period (from acquisition to disposal) | Malaysian citizens & PRs | Malaysian companies | Non-citizens / foreign companies |
|---|---|---|---|
| Disposal within 1st year | 30% | 30% | 30% |
| Within 2nd year | 30% | 30% | 30% |
| Within 3rd year | 30% | 30% | 30% |
| Within 4th year | 20% | 20% | 30% |
| Within 5th year | 15% | 15% | 30% |
| 6th year onwards | 0% | 10% | 10% |
(Source: LHDN, RPGT rates by category under Schedule 5 of the RPGT Act 1976, effective 1 January 2022 and unchanged by Budget 2026; checked 30 Sep 2026.)
Key takeaways from this schedule:
- Malaysian citizens and PRs pay 0% RPGT if they dispose of the property in the sixth year or later. This is the single biggest lever sellers have. The 0% band has applied since 1 January 2022; from 2019 to 2021 citizens paid 5% in the sixth year and beyond.
- Companies never reach 0% — they pay 10% from the sixth year onwards.
- Foreigners and non-citizens face a flat 30% for the first five years and 10% thereafter, with no drop to zero.
Because the gap between Year 5 (15%) and Year 6 (0%) is so large for citizens, sellers close to the five-year mark should think carefully about whether waiting a few extra months to cross into the sixth holding year is worthwhile. The same applies at the three-year mark, where the rate falls from 30% to 20%.
Timing your sale: a worked calendar
For a home bought under an SPA dated 15 March 2023, the citizen rate depends on when you sign the sale SPA:
| Sale SPA signed | Holding year | Citizen / PR rate |
|---|---|---|
| On or before 15 March 2026 | Within 3 years | 30% |
| After 15 March 2026, up to 15 March 2027 | 4th year | 20% |
| After 15 March 2027, up to 15 March 2028 | 5th year | 15% |
| After 15 March 2028 | 6th year onwards | 0% |
A seller signing today (September 2026) is in the fourth year. Waiting until after 15 March 2027 cuts the rate by five points; waiting until after 15 March 2028 removes it entirely. Whether that is worth it depends on the market, your loan and your next purchase, but you should know the numbers before you accept an offer.
How to Calculate Your RPGT Liability
RPGT is calculated in a few clear steps. First, you establish your chargeable gain; then you subtract the individual exemption; then you apply the relevant rate.
The basic formula:
Chargeable Gain = Disposal Price − Acquisition Price − Permitted Deductions
RPGT Payable = (Chargeable Gain − Exemption) × RPGT Rate
Permitted (allowable) deductions reduce your taxable gain and are worth itemising carefully. They typically include:
- Legal fees on both purchase and sale
- Stamp duty paid on the original acquisition
- Real estate agent's commission on the sale
- Costs of enhancing or improving the property (e.g. renovations, extensions, a new kitchen) — but not routine repairs or maintenance
- Costs of defending or establishing your title to the property
- Advertising and marketing costs incurred to find a buyer
Your outstanding housing loan is not a deduction. It is repaid out of the proceeds, but it does not reduce the gain.
Worked example
You are a Malaysian citizen who bought a condominium under an SPA dated 1 August 2022 and sell it under an SPA dated 1 February 2026.
| Item | Amount (RM) |
|---|---|
| Disposal price (sale, 2026) | 600,000 |
| Less: acquisition price (purchase, 2022) | (400,000) |
| Gross gain | 200,000 |
| Less: legal fees (purchase + sale) | (6,000) |
| Less: stamp duty on acquisition (1% on first RM100k + 2% on next RM300k) | (7,000) |
| Less: agent commission on sale (2% + 8% SST) | (12,960) |
| Less: kitchen + bathroom renovation (enhancement) | (25,000) |
| Chargeable gain | 149,040 |
The holding period is three years and six months, which falls in the fourth holding year — so the citizen rate is 20%.
Now apply the individual exemption (the greater of RM10,000 or 10% of the chargeable gain — explained in the next section):
| Step | Amount (RM) |
|---|---|
| Chargeable gain | 149,040 |
| Less: exemption (10% of 149,040 = 14,904, vs RM10,000 → use 14,904) | (14,904) |
| Net chargeable gain | 134,136 |
| RPGT at 20% | 26,827.20 |
So in this example your RPGT liability is approximately RM26,827. Keep every receipt and invoice. If you could not document any of the RM50,960 in deductions, the whole RM200,000 gain would be taxed: RM180,000 after the RM20,000 (10%) exemption, or RM36,000 at 20%. Good record-keeping in this example saves you about RM9,170.
Rather than working through the tiers by hand, run your own numbers through our free RPGT Calculator — it applies the correct rate for your holding period and seller category and checks the individual exemption automatically.
SuperHomes data: net proceeds on a Selangor median sale
The median asking price across for-sale listings in Selangor on SuperHomes is RM375,000 (n=177; SuperHomes listings, Sep 2026). Suppose you are a citizen who bought a home in Shah Alam for RM300,000 under an SPA dated 15 March 2023 and sell it at the Selangor median in September 2026, in your fourth year.
| Item | Amount (RM) |
|---|---|
| Sale price | 375,000 |
| Purchase price | (300,000) |
| Stamp duty paid on purchase | (5,000) |
| Legal fees on purchase (approx.) | (4,000) |
| Agent commission on sale, 2% + 8% SST | (8,100) |
| Your legal fees on sale (approx.) | (5,060) |
| Chargeable gain | 52,840 |
| Less: exemption (RM10,000 beats 10% = RM5,284) | (10,000) |
| Taxable gain | 42,840 |
| RPGT at 20% (4th year) | 8,568 |
What happens to the money on completion:
| Cash flow | Amount (RM) |
|---|---|
| Buyer's lawyer withholds 3% retention for LHDN | 11,250 |
| RPGT you actually owe | 8,568 |
| Excess retention you reclaim from LHDN | 2,682 |
| Net proceeds after commission, your legal fees and RPGT (before repaying your loan) | 353,272 |
On the same numbers, selling on or before 15 March 2026 would have cost RM12,852 at 30%, and selling after 15 March 2028 would cost nothing — with the whole RM11,250 retention refundable. Homes around this price are common in Shah Alam and Petaling Jaya, so this is the typical position for a Klang Valley upgrader.
RPGT Exemptions for Malaysian Citizens
Malaysian citizens and permanent residents enjoy several exemptions that can dramatically reduce or even eliminate RPGT. Our RPGT exemptions guide explains each one in detail.
1. Once-in-a-lifetime private residence exemption (Section 8). Every Malaysian citizen and permanent resident can elect a full exemption on the gain from disposing of one private residence in their lifetime. You can only use it once and the election is irrevocable, so most people save it for an early sale with a large gain — never for a sale in the sixth year or later, which is already taxed at 0%. The property must be a residence you own and occupy or intend to occupy, and you make the election on Form CKHT 3 through e-CKHT.
2. The RM10,000 or 10% exemption (Schedule 4). For every disposal, an individual — citizen, PR or foreigner — is exempt on the greater of RM10,000 or 10% of the chargeable gain. This applies automatically per disposal and is the exemption we used in the worked examples above. Companies do not get it.
3. Transfers between family members. Gifts of property between husband and wife, parent and child, or grandparent and grandchild are treated as "no gain, no loss" when the giver is a Malaysian citizen, so no RPGT is triggered at the point of transfer. The recipient takes over the giver's original acquisition price and date for future RPGT purposes. Stamp duty is separate: a gift between spouses is exempt, and a parent-child or grandparent-grandchild gift to a citizen is exempt on the first RM1 million of market value with a 50% remission on the rest.
4. Inheritance. No RPGT arises on death or when the property passes to the beneficiaries. The beneficiary's acquisition price is the market value at the date of death, and the holding period runs from the date of death — which matters if they later sell. We cover this in more depth in our guide on selling inherited property in Malaysia.
| Exemption | Who qualifies | Effect |
|---|---|---|
| Once-in-a-lifetime (S.8) | Citizens & PRs, one private residence | Full exemption on the gain |
| RM10,000 or 10% (Sch. 4) | All individuals, every disposal | Reduces chargeable gain |
| Family transfer (Sch. 2 para 3) | Spouses, parents & children, grandparents & grandchildren; giver a citizen | No gain, no loss — no RPGT at transfer |
| Inheritance | Beneficiaries | No RPGT at transfer; market value at death becomes the cost |
(Sources: RPGT Act 1976 s.8, Schedule 2 paragraph 3, Schedule 4 paragraph 2; Stamp Duty (Exemption) (No. 3) Order 2023; checked 30 Sep 2026.) If you want the full picture of the RPGT regime including company and foreigner rates, see our companion explainer on RPGT in Malaysia for 2026, and for the rate history see our RPGT rates reference.
Agent Retention: What Your Buyer's Solicitor Will Withhold
Here is a part of the process that catches many sellers off guard. When you sell, you do not receive the full purchase price into your hands and then settle RPGT separately. Instead, the law requires the buyer (acquirer) — acting through their solicitor — to retain a portion of the purchase price and remit it directly to LHDN as an advance payment towards your RPGT. This is the "retention sum."
The retention rates for 2026 are:
| Seller (disposer) status | Retention rate | Withheld from |
|---|---|---|
| Malaysian citizen or PR | 3% | Total disposal price |
| Malaysian company, trustee or registered body, selling within 3 years | 5% | Total disposal price |
| Malaysian company, trustee or registered body, selling from the 4th year | 3% | Total disposal price |
| Non-citizen non-PR individual, or company not incorporated in Malaysia | 7% | Total disposal price |
The buyer retains the stated percentage or the whole of the cash consideration, whichever is lower, and must remit it within 60 days of the disposal date; a buyer who does not remit faces a penalty of 10% of the amount unpaid. (Source: RPGT Act 1976 s.21B; LHDN disposer and acquirer responsibilities page; checked 30 Sep 2026.)
So if you are a citizen selling for RM600,000, the buyer's solicitor withholds RM18,000 (3%) and sends it to LHDN within 60 days of the disposal date. This 3% is an advance payment, not the final tax. Once your own return is filed:
- If your final RPGT liability is higher than the retention, you pay the balance within 90 days of the disposal.
- If it is lower — for instance, you qualify for a full exemption, sell in the sixth year or sell at a loss — you claim a refund of the excess from LHDN.
Practical tip: because the retention is withheld from the gross price, sellers who expect to pay little or no RPGT (such as those holding beyond five years, or claiming the once-in-a-lifetime exemption) should plan their cash flow around having that retention temporarily locked up until a refund is processed. If you are using the proceeds for the down payment on your next home, leave the retention out of your budget. Make sure your solicitor files your return promptly so the refund can be processed as early as possible.
How to File RPGT (CKHT Forms)
Since 1 January 2025 RPGT has been self-assessed: you compute the tax, file the return electronically, and the return is treated as the assessment — there is no longer a Notice of Assessment to wait for. Both the seller and buyer have obligations, and the deadlines are strict — 60 days from the date of disposal (the SPA date) for the returns, and 90 days for payment.
| Form | Filed by | Purpose |
|---|---|---|
| CKHT 1A | Seller (disposer) | Return for a disposal of real property |
| CKHT 1B | Seller | Return for a disposal of shares in a real property company (RPC) |
| CKHT 2A | Buyer (acquirer) | Return for the acquisition of real property |
| CKHT 3 | Seller | Claim for an exemption (including the Section 8 election) or declaration of a loss |
| CKHT 502 | Buyer (acquirer) | Payment form for remitting the retention sum to LHDN |
The general filing flow looks like this:
- Sign the SPA — this fixes the disposal date and starts the 60-day and 90-day clocks.
- Your solicitor or tax agent prepares CKHT 1A (and CKHT 3 if you are claiming an exemption or made a loss), computing the gain and the tax.
- The buyer's solicitor prepares CKHT 2A and remits the 3% (or 5% or 7%) retention using CKHT 502.
- Submit within 60 days of the disposal date, online through e-CKHT on the MyTax portal. Online filing has been mandatory since 1 January 2025.
- Pay any balance within 90 days of the disposal date, or claim a refund if the retention exceeded your liability.
Keep the SPAs, receipts and the returns for seven years; LHDN can audit a self-assessed return. (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.)
Late filing or late payment can attract penalties, so do not leave this to chance. In practice your conveyancing solicitor handles the bulk of the CKHT paperwork as part of the sale — but you are responsible for providing accurate figures and the supporting documents for your deductions. If you are still deciding whether to engage a solicitor and agent or to handle the sale yourself, our comparison of selling with an agent versus DIY in Malaysia walks through the trade-offs.
Common Mistakes Sellers Make
- Signing the sale SPA a few weeks too early. The holding year is counted SPA to SPA. Missing a boundary by a month can add 5 to 15 percentage points to the rate.
- Spending the retention. The 3% is held by LHDN until your return is processed. Do not count it towards your next down payment.
- Wasting the Section 8 election. Using it on a sixth-year sale, already at 0%, burns it for nothing.
- Losing the receipts. Undocumented renovation is not deductible.
- Not filing because there is no tax. A 0%, exempt or loss-making sale still needs a return within 60 days.
FAQs
Q: Who files CKHT 502?
The buyer (the acquirer), almost always through their lawyer. CKHT 502 is the payment form used to remit the retention sum — 3%, 5% or 7% of the price depending on the seller — to LHDN within 60 days of the disposal date. The seller does not file it, but should ask for proof of remittance so the amount is credited against their RPGT.
Q: How much is the RPGT retention sum in 2026?
The buyer withholds 3% of the price when the seller is a Malaysian citizen or permanent resident, 7% when the seller is a foreigner or a foreign company, and for a Malaysian company 5% within three years of acquisition and 3% from the fourth year. The retention is an advance payment credited against your RPGT; any excess is refundable after your return is filed.
Q: Do I need to file CKHT 3 if I am not subject to RPGT?
If you claim an exemption or have a loss, yes: CKHT 3 is the form for claiming exemptions (including the once-in-a-lifetime election) and declaring losses, submitted with your CKHT 1A through e-CKHT. Even a sale taxed at 0% in the sixth year still needs a return within 60 days, because every disposal must be reported under self-assessment.
Q: Does RPGT apply to my only house?
Yes, RPGT technically applies to any disposal of a chargeable asset, including your only home. However, Malaysian citizens and permanent residents can elect a once-in-a-lifetime full exemption on one private residence via CKHT 3, and from the sixth year citizens pay 0% anyway. You can only use the election once and it cannot be withdrawn, so save it for a sale that would otherwise be taxed.
Q: What pengecualian CKHT (RPGT exemptions) can a seller claim?
Individuals get the greater of RM10,000 or 10% of the chargeable gain on every sale. Citizens and PRs also have the once-in-a-lifetime private residence exemption under Section 8. Gifts between spouses, parents and children, and grandparents and grandchildren by a citizen are no gain, no loss, and inheritance triggers no RPGT at death.
Q: What counts as permitted expenses?
Permitted deductions are costs of acquiring, enhancing or disposing of the property: legal fees on purchase and sale, stamp duty on acquisition, agent commission, advertising, costs of defending your title, and capital improvements such as renovations or extensions. Routine repairs, loan interest, maintenance fees, assessment and quit rent do not count. Keep original invoices; LHDN can disallow undocumented deductions.
Q: Does RPGT apply to Bumiputera lots?
Yes. RPGT applies regardless of whether the property is a Bumiputera-reserved lot, at the same rates and with the same exemptions. What differs is the pool of eligible buyers and the need for state consent to sell to a non-Bumiputera, which can affect your price and timeline rather than the tax. See our guide on Bumiputera lots in Malaysia.
Q: What if I make a loss?
There is no RPGT to pay, but you still file CKHT 1A with CKHT 3 declaring the loss within 60 days, and claim back the retention your buyer withheld. The allowable loss is set off against gains on other real property disposals in the same year and any balance is carried forward to later years. It cannot be set off against gains on shares in a real property company.
Ready to Sell? Start With the Right Price
Understanding RPGT is only one piece of a successful sale. The biggest factor in how much you walk away with is pricing your property correctly and reaching serious buyers. Benchmark your home against current listings in Shah Alam, Petaling Jaya or across SuperHomes properties, or connect with a local professional through our find an agent directory to handle the SPA, CKHT filing, and negotiation end to end. If you are weighing whether to upgrade after selling, explore the latest new project launches across Malaysia.
