Tax · Updated 8 October 2026
RPGT in Malaysia 2026: rates, calculator and worked examples
Real property gains tax for citizens, foreigners and companies: the rates by holding period, what you can deduct, the buyer’s 3% or 7% retention, filing on e-CKHT and what changed on 1 January 2026.
Calculator
Work out your RPGT
Enter the SPA dates and amounts. The example shows a foreigner selling in the 5th year.
The rates
RPGT rates in 2026
Unchanged by Budget 2025 and Budget 2026. Holding period runs from the purchase SPA date to the sale SPA date, not from key handover.
| When you sell | Citizens and PRs | Foreigners | Companies |
|---|---|---|---|
| Within 3 years | 30% | 30% | 30% |
| In the 4th year | 20% | 30% | 20% |
| In the 5th year | 15% | 30% | 15% |
| 6th year or later | 0% | 10% | 10% |
The calculation
How the gain is worked out
Your cost
Purchase price, plus stamp duty, legal and valuation fees on the purchase, plus renovation that is still part of the property.
Your sale proceeds
Sale price minus agent commission and legal fees on the sale.
Exemption
Individuals deduct the higher of RM10,000 or 10% of the gain. Companies do not.
Not deductible
Loan interest, loan legal fees and stamp duty, routine repairs, furniture, and undocumented cash renovation.
Losses
From YA2026 unused RPGT losses can be carried forward for 10 years of assessment.
Keep receipts
Records must be kept for 7 years under self-assessment.
Worked examples
A foreign seller, two dates
Illustrative figures. Waiting a few weeks into the 6th year saves this seller about RM27,800. A citizen selling in the 6th year would pay RM0.
| 5th year (sale SPA Oct 2026) | 6th year (sale SPA after Nov 2026) | |
|---|---|---|
| Purchase (SPA Nov 2021) | RM1,000,000 | RM1,000,000 |
| Purchase costs and renovation | RM63,540 | RM63,540 |
| Sale price less selling costs | RM1,218,000 | RM1,218,000 |
| Gain | RM154,460 | RM154,460 |
| Exemption (10%) | RM15,446 | RM15,446 |
| Chargeable gain | RM139,014 | RM139,014 |
| Rate | 30% | 10% |
| RPGT | RM41,704 | RM13,901 |
| Buyer’s 7% retention | RM87,500 | RM87,500 |
Filing and retention
What the seller and buyer must do
- Both file within 60 days of the sale SPA, online on e-CKHT (MyTax). Paper forms are no longer accepted. Seller: CKHT 1A; buyer: CKHT 2A; exempt or no-gain sales: CKHT 3.
- The buyer retains 3% (citizen seller), 7% (foreign seller) or 5%/3% (company) of the price and pays it to LHDN within 60 days.
- New from 1 January 2026: if the seller files first and notifies the tax worked out, the buyer retains only the lower amount.
- Self-assessment since 2025: your filed return is the assessment. Pay any balance within 90 days of the sale; LHDN may allow instalments.
- Penalties for not filing can reach three times the tax; late payment adds 10%.
- Each seller needs a Malaysian income tax number; foreigners register on e-Daftar with a passport.
Special cases
Exemptions and transfers
- Once-in-a-lifetime private residence exemption: citizens and PRs only.
- Gifts between spouses, parents and children, or grandparents and grandchildren: no gain, no loss if the giver is a Malaysian citizen.
- Inheritance: no RPGT at death; the heir’s cost is the market value at transfer. See when an owner dies.
- Low-cost homes of RM200,000 or less sold by citizens from the 6th year are exempt (now covered by the 0% rate anyway).
- Foreign buyers needing state consent: the sale date can be the consent date, which can change your year.
Straight answers
Frequently asked questions
How much RPGT does a foreigner pay?
30% of the chargeable gain if you sell within 5 years of buying, and 10% from the 6th year. Years run from the purchase SPA date to the sale SPA date.
Do Malaysians pay RPGT after 5 years?
No. Citizens and PRs pay 0% from the 6th year, but still file the return. Within 3 years it is 30%, then 20% in year 4 and 15% in year 5.
What is the 3% or 7% the buyer keeps back?
The buyer retains part of the price and pays it to LHDN within 60 days: 3% for citizen sellers, 7% for foreign sellers, 5% or 3% for companies. Any amount above your actual tax is refunded once LHDN processes your return.
Can I deduct renovation and agent fees?
Yes. Stamp duty and legal fees on the purchase, renovation still in the property, and agent and legal fees on the sale are deducted. Loan interest, repairs and furniture are not.
Is there a once-in-a-lifetime exemption?
Yes, but only for Malaysian citizens and PRs, on one private residence, by written election. Foreigners cannot use it.
Do I pay RPGT if I inherit a property?
Not on the inheritance itself. Your cost is the market value when the property is transferred to you, and RPGT applies to any gain when you later sell.
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Related guides
Last updated 8 October 2026. Sources: LHDN – RPGT rates; LHDN – RPGT exemptions; LHDN – Disposal and acquisition dates; LHDN – Responsibilities of disposer and acquirer (retention); LHDN – Self-assessment for RPGT (STS-CKHT); PwC Malaysian Tax Booklet – RPGT (Nov 2025); KPMG – Malaysia Finance Act 2025 tax measures (Jan 2026); Landco – RPGT latest update 2026; ACCA Malaysia – RPGT technical article. General information, not tax advice. Confirm your figures with a Malaysian tax agent before you sign.
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