RPGT 2026 Rates & Calculator Malaysia

Real Property Gains Tax (RPGT) is a tax on the profit (chargeable gain) from selling Malaysian real estate. It is governed by the Real Property Gains Tax Act 1976 and administered by LHDN (Inland Revenue Board). The rate depends on how long you held the property and your buyer category (Malaysian citizen/PR, company, or foreigner).

For individual Malaysian citizens and PRs: 30% within the first 3 years, 20% in year 4, 15% in year 5, and 0% from year 6 onwards. For companies: 30% / 20% / 15% / 10% in year 6+. For non-citizens / foreigners: 30% for the first 5 years and 10% from year 6 onwards. Rates apply to the chargeable gain, not the sale price.

Step 1: gross gain = sale price − purchase price. Step 2: subtract allowable expenses (legal fees, stamp duty on purchase, renovation costs, agent commission, etc.) to get the net gain. Step 3: subtract the general exemption (RM10,000 or 10% of net gain, whichever is higher — individuals only) to get the chargeable gain. Step 4: multiply by the rate for your holding period. The calculator on this page automates all four steps.

Allowable expenses include legal fees paid on purchase and sale, stamp duty on purchase, real estate agent commission, advertising costs to sell, and permanent improvements (extensions, structural renovations). Routine repairs and maintenance, mortgage interest, and property assessment tax do NOT count.

Under section 8 of the RPGT Act, a Malaysian citizen or permanent resident can elect, once in a lifetime, to exempt the gain on the disposal of one private residence: a building in Malaysia they own that is occupied, or certified fit for occupation, as a home. The election is made on Form CKHT 3 through e-CKHT and cannot be withdrawn.

Yes. Non-citizens and non-PR holders pay 30% RPGT for the first 5 years of holding, dropping to 10% from year 6 onwards. Malaysian citizens and PRs reach 0% RPGT from year 6 — significantly more favourable for long-term holders. The Malaysia My Second Home (MM2H) programme does NOT change RPGT treatment; MM2H pass-holders are still taxed at the foreigner rate.

Only some transfers are spared. A gift between husband and wife, parents and children, or grandparents and grandchildren is treated as no gain and no loss when the giver is a Malaysian citizen (Schedule 2, paragraph 12). A transfer between spouses for money is treated the same way for resident Malaysian citizens (paragraph 3). Siblings are not covered, and a sale at market value to a child is taxed like any other sale. Consult a tax practitioner for your specific case.

For disposals from 1 January 2025 RPGT is self-assessed: the seller files the RPGT return within 60 days of the disposal date (the date of the SPA) and pays any tax due within 90 days. The buyer must withhold part of the price and pay it to LHDN within 60 days: the prescribed percentage (3% when the seller is a citizen or PR, 7% when the seller is a foreigner, and 5% within 3 years or 3% from the 4th year when the seller is a company), or, from 1 January 2026, the RPGT the seller has self-assessed in their return if that is lower. That amount is credited against the seller's tax.

No. RPGT only applies to real property (land and buildings) in Malaysia and to shares in real property companies. Malaysia introduced a separate Capital Gains Tax (CGT) on unlisted share disposals from 1 January 2024, but real estate is still governed by RPGT, not CGT.

If the sale price is less than the purchase price (after allowable expenses), there is no chargeable gain and no RPGT to pay. An allowable loss reduces the chargeable gain on your later disposals. Under the Finance Act 2025, from year of assessment 2026 a loss that is not used up can be carried forward for up to nine further years of assessment and then lapses; losses still unused at the end of YA 2025 can be used until YA 2035. You must still file the RPGT return to declare the disposal.