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RPGT Malaysia 2026

Real Property Gains Tax (RPGT) is the tax on profit when you sell a property. For Malaysian citizens it's 30% within 3 years, tapering to 0% after 5 years.

RPGT Rates by Holding Period (2026)

Per Schedule 5, Real Property Gains Tax Act 1976. The rate depends on how long you held the property and your seller category.

DisposedCitizen / PRCompanyForeigner
Within 3 years30%30%30%
In the 4th year20%20%30%
In the 5th year15%15%30%
In the 6th year and beyond0%10%10%

“Citizen / PR” = Malaysian citizens and permanent residents. Foreigner = non-citizen, excluding PR. Rates current for 2026.

How RPGT Is Calculated

RPGT is charged on your chargeable gain — not the full sale price:

Chargeable gain = Disposal price − Acquisition price − Allowable costs
(legal fees, agent commission, renovation, etc.)

Worked example — citizen selling in the 4th year:

  • Sale price: RM700,000
  • Bought for: RM500,000 · Allowable costs: RM30,000
  • Chargeable gain: RM170,000
  • Less waiver (greater of RM10,000 or 10%): −RM17,000
  • Taxable gain: RM153,000 × 20% (4th-year rate)
  • RPGT payable ≈ RM30,600
Calculate your RPGT →

RPGT Exemptions

RM10,000 or 10%

Individuals are exempt on the greater of RM10,000 or 10% of the chargeable gain on each disposal.

Once-in-a-lifetime

A Malaysian citizen or PR can claim a one-time exemption on the disposal of one private residence.

Family transfers

Transfers by way of love and affection between spouse, parent-child, or grandparent-grandchild are exempt.

Frequently Asked Questions

What is the RPGT rate in Malaysia 2026?
For Malaysian citizens and permanent residents, RPGT is 30% if you sell within 3 years of buying, 20% in the 4th year, 15% in the 5th year, and 0% from the 6th year onwards. Companies pay 10% from year 6, and foreigners (non-citizens) pay 30% for the first 5 years and 10% thereafter. These follow Schedule 5 of the Real Property Gains Tax Act 1976.
Is there RPGT after holding a property for 5 years?
For Malaysian citizens and PRs, RPGT drops to 0% once you have held the property for more than 5 years (i.e. disposal in the 6th year or later). Companies and foreigners still pay 10% even after 5 years.
How is RPGT calculated?
RPGT is charged on your chargeable gain: disposal price minus the acquisition price minus allowable costs (legal fees, agent commission, renovation, etc.). Individuals also get a waiver of the greater of RM10,000 or 10% of the chargeable gain. The remaining gain is multiplied by the RPGT rate for your holding period and seller category.
What RPGT exemptions are available?
Key exemptions for individuals include: (1) the greater of RM10,000 or 10% of the chargeable gain; (2) a once-in-a-lifetime exemption on the disposal of one private residence (Malaysian citizen/PR); and (3) exemptions for transfers between family members by way of love and affection (spouse, parent-child, grandparent-grandchild).
What is the RPGT rate for foreigners in Malaysia?
Foreigners (non-citizens, excluding permanent residents) pay 30% RPGT on gains for disposals within the first 5 years, and 10% from the 6th year onwards.
Who pays RPGT and when?
RPGT is paid by the seller (the disposer) on the gain made from selling the property. The buyer's solicitor typically retains a portion of the purchase price (commonly 3% for citizens) and remits it to LHDN within 60 days of the SPA, with the balance settled on assessment.

Related Tools and Guides

RPGT Calculator

Work out your exact RPGT for any sale price, year and seller type.

Kalkulator RPGT (BM)

Kira cukai keuntungan harta tanah dalam Bahasa Malaysia.

Property Glossary

Every Malaysian property term — RPGT, SPA, MOT, commission and more.

Agent Commission

How much agent commission costs when you sell — an allowable RPGT cost.