RPGT Malaysia 2026: Real Property Gains Tax Rates Explained Simply

Real Property Gains Tax (RPGT) is the capital gains tax Malaysians pay when they sell a property for more than they bought it. Since 2022, one of the most buyer-friendly updates was the removal of RPGT for citizens disposing of property from the sixth year of ownership onwards. Here is the clean 2026 snapshot.

RPGT applies on every property disposal in Malaysia.

Current RPGT Rates (2026)

Disposal within	Citizens & PRs	Non-citizens / Companies
Year 1 – 3	30%	30%
Year 4	20%	30%
Year 5	15%	30%
Year 6 and beyond	0%	10%

Malaysian citizens and permanent residents pay no RPGT if they sell from the sixth year of ownership onwards. Foreigners and companies still pay a flat 10%.

Simple Worked Example

You bought a condominium in 2022 for RM450,000 and are selling in 2026 for RM580,000. Chargeable gain is RM130,000 (before allowable deductions). You owned it into Year 5, so the rate for a citizen is 15%. RPGT payable ≈ 15% × RM130,000 = RM19,500.

Allowable Deductions

• Legal fees, stamp duty and valuation fees paid at acquisition.
• Renovation and refurbishment cost — you need receipts.
• Agent commission and incidental disposal costs.
• Advertising costs directly linked to the disposal.

Key Exemptions

• Once-in-a-lifetime exemption: every Malaysian citizen is entitled to a one-time RPGT exemption on a single residential property disposal.
• Family transfer exemption: transfer between spouses, parent to child or grandparent to grandchild (love and affection) is exempt under LHDN guidelines.
• Minimum exemption: gains up to RM10,000 or 10% of chargeable gain (whichever higher) are not taxable for individuals.

Practical Timing Tips

• If you are close to the Year 5 to Year 6 boundary, waiting a few months can move you from 15% to 0% RPGT as a citizen.
• Keep every renovation invoice. Receipts are valid for RPGT deduction as long as they are linked to the property.
• If you hold multiple properties, use your once-in-a-lifetime exemption on the residence with the largest nominal gain.

RPGT for Foreigners and MM2H Holders

Foreign buyers pay 30% RPGT on disposal in years 1–5, dropping to 10% from year 6 onwards. Foreigners targeting KLCC condos, Mont Kiara, Bangsar or Damansara Heights bungalows typically plan for at least a 6-year hold to benefit from the lower rate.

RPGT vs Stamp Duty — Quick Comparison

Tax	Who Pays	When	Calculated On
Stamp Duty (MOT)	Buyer	At purchase	Purchase price (tiered 1-4%)
RPGT	Seller	At sale	Chargeable gain (0-30%)

How to Pay RPGT

1. Within 60 days of disposal, file Form CKHT 1A (seller) and Form CKHT 2A (buyer) at LHDN.
2. The buyer’s lawyer typically retains 3% of the purchase price and remits to LHDN as withholding pending RPGT assessment.
3. LHDN issues an assessment notice. Pay the balance within 30 days, or claim refund if overpaid.
4. Keep proof of all deductions — LHDN can audit up to 5 years post-transaction.

FAQ

Do I pay RPGT on my own home if I sell?

Yes, but you can claim your once-in-a-lifetime exemption on a single residential property disposal as a Malaysian citizen.

Does RPGT apply to inherited property?

Property received via inheritance is exempt at transfer. When the heir later sells, the holding period restarts from the date of inheritance.

What if I sell at a loss?

No RPGT is payable on losses, but you cannot offset losses against future RPGT gains on different properties.

Selling soon? Plan your RPGT first.

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