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Malaysia RPGT Calculator 2026
Real Property Gains Tax by holding year and citizenship — 2026 LHDN rates. Free, instant, no signup.
Malaysia RPGT 2026 at a glance: Citizens pay 30% (Y1–3), 20% (Y4), 15% (Y5), then 0% from Y6. Foreigners pay 30% (Y1–5) and 10% from Y6. Malaysian companies pay 30% (Y1–3), 20% (Y4), 15% (Y5), and 10% from Y6. Selling in year 6 instead of year 5 can save a citizen 15% of the gain — often RM30,000+ on a typical Penang condo sale. Use the calculator below for your specific numbers.
Malaysia RPGT Calculator 2026
Estimate your Real Property Gains Tax exposure on a Malaysian property sale. 2026 rates.
Indicative only. Includes the higher-of RM10K-or-10%-of-gain exemption available to every individual seller (companies excluded). Once-in-a-lifetime exemption on a residential unit is not applied here — discuss eligibility before filing.
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RPGT rates in Malaysia, 2026
Set by Schedule 5 of the Real Property Gains Tax Act 1976. The rate depends on who is selling and how long they held it — the year counts from the date of acquisition.
| Who is selling | Yr 1–3 | Yr 4 | Yr 5 | Yr 6+ |
|---|---|---|---|---|
| Malaysian citizens & PRsSchedule 5 Part I. The 5% year-6 band was abolished 1 Jan 2022 — from year six a citizen pays nothing. | 30% | 20% | 15% | 0% |
| Malaysian companies, trustees, bodies of personsSchedule 5 Part II. Identical to citizens until year six, where it floors at 10% rather than nil. | 30% | 20% | 15% | 10% |
| Non-citizens, non-PRs, foreign companiesSchedule 5 Part III. A foreign seller pays the full 30% for five years — there is no taper. | 30% | 30% | 30% | 10% |
The step a Penang seller should care about is year five to year six. A citizen selling in year five pays 15%; in year six, nothing. On a RM300,000 gain that is RM45,000 for waiting. A foreign seller has the same cliff but larger — 30% to 10%, or RM60,000 on the same gain.
What the buyer withholds — section 21B
This is the part that surprises sellers. Your buyer's solicitor is legally required to hold back a slice of the price and remit it to LHDN within 60 days — before anyone has worked out what you actually owe.
| Seller | Withheld |
|---|---|
| Malaysian citizen or PR (individual) | 3% |
| Malaysian company disposing within 3 yearsRaised from 3% on 1 Jan 2022. Reverts to 3% from year four. | 5% |
| Non-citizen or non-PR individual | 7% |
| Company not incorporated in Malaysia | 7% |
It is withheld on the whole sale price, not the gain. A foreigner selling a RM1,500,000 Penang condo has RM105,000 held back on the spot, even if the eventual tax is far less — or nil. It is a deposit, not the tax: LHDN refunds the difference after assessing. Plan your cash flow around the 7%, not around what you expect to owe.
The exemptions, and who actually gets them
RM10,000 or 10% of the gain, whichever is higher
Schedule 4, paragraph 2. Applies automatically to every individual — citizens, PRs and foreigners alike. Companies get nothing. On a RM400,000 gain the exemption is RM40,000, not RM10,000, because the 10% is higher.
Once-in-a-lifetime private residence
Wipes the entire gain on one private residence, at any holding period, claimed on Form CKHT 3. Malaysian citizens and permanent residents only — a foreign owner cannot use it. You get one, ever, so spending it on a small gain to save 30% in year two may cost you more later. Take advice before electing.
Transfers within the family
Gifts between spouse, parent and child, or grandparent and grandchild are treated as no gain and no loss. Siblings are not on that list — a transfer between brother and sister is a normal disposal and taxed as one. This catches families every year.
Forms and the 60-day clock
Both sides file within 60 days of the disposal date — which is the SPA date, not completion. Late filing draws a penalty, commonly 10% of the tax payable and up to three times the tax where returns are not filed at all.
| Form | Filed by | For |
|---|---|---|
| CKHT 1A | Seller | Declaring the disposal and the gain |
| CKHT 2A | Buyer | Declaring the acquisition |
| CKHT 3 | Seller | Claiming an exemption |
| CKHT 502 | Buyer | Paying the retention, via e-CKHT on MyTax |
What you can deduct before the rate applies
RPGT is charged on the chargeable gain, not the sale price. Everything below comes off first — and the difference on a Penang condo is routinely RM50,000 or more of taxable gain, so keep the receipts from the day you buy.
- The original purchase price, plus the stamp duty and legal fees you paid on it
- Agent commission on both the purchase and the sale
- Legal fees on the sale
- Renovation and improvement that enhanced value — receipts from a registered contractor, not handwritten notes, which LHDN rejects
- Incidental costs of acquiring and disposing
Repairs and maintenance are not deductible — only improvement is. Repainting to sell does not count; adding a room does.
A worked example at Penang prices
A Tanjung Tokong condo bought at RM1,100,000 and sold at RM1,500,000 in year four, with RM60,000 of documented costs.
| Step | Citizen | Foreigner |
|---|---|---|
| Gross gain (1,500,000 − 1,100,000) | 400,000 | 400,000 |
| Less allowable costs | −60,000 | −60,000 |
| Chargeable gain | 340,000 | 340,000 |
| Less Sch.4 exemption (higher of RM10K / 10%) | −34,000 | −34,000 |
| Taxable gain | 306,000 | 306,000 |
| Rate in year four | 20% | 30% |
| RPGT payable | RM61,200 | RM91,800 |
| Withheld by the buyer at the SPA | RM45,000 (3%) | RM105,000 (7%) |
Note the last row. The citizen owes RM61,200 but only RM45,000 was withheld, so there is a balance to find. The foreigner owes RM91,800 against RM105,000 withheld, so RM13,200 comes back — eventually. Same sale, opposite cash-flow problems. Run your own figures in the calculator above.
Sources. Real Property Gains Tax Act 1976, Schedule 4 (exemptions) and Schedule 5 (rates) as amended by the Finance Acts to 2026; LHDN e-CKHT filing requirements. Rates re-verified 11 August 2026. This is general information from a licensed estate agent, not tax advice — a disposal with unusual facts should go to a tax agent before you file.
Strategy Notes — Sell Year 6, Not Year 5
For citizens, the difference between year 5 (15%) and year 6 (0%) is the largest single RPGT optimisation available. On a RM200,000 chargeable gain, holding one extra year saves RM30,000. On a RM500,000 gain, it saves RM75,000.
The holding period is measured from SPA date to SPA date — not booking form to handover. For new launches with 36-month construction, your year-6 date arrives roughly 6 years after the original developer SPA, which for a 2026 sale typically means a 2020 booking.
Exceptions where selling earlier makes sense: (1) you need the liquidity for a higher-return opportunity, (2) the market is in a clear downtrend and waiting risks a larger price decline than the RPGT saving, (3) you can apply the once-in-a-lifetime exemption to a year 5 sale and avoid the 15% entirely.
RPGT for Foreign Sellers and MM2H Holders
Foreign sellers face the harshest schedule — 30% for the first five full years. The buyer's solicitor retains 7% of the purchase price, not 3% — on a RM1,500,000 sale that is RM105,000 held back at the SPA, before anyone has computed the actual tax. MM2H holders are treated as foreigners for RPGT unless they have obtained PR status.
For foreign investors, the practical implication: only hold Penang property if you intend to keep it past year 6. Anything shorter is fighting the tax schedule. See the foreign buyers guide and MM2H 2026 handbook.
Frequently Asked Questions
What is the RPGT rate in Malaysia for 2026?
For Malaysian citizens and PRs: 30% in years 1–3, 20% in year 4, 15% in year 5, and 0% from year 6 onward. For foreigners: 30% in years 1–5 and 10% from year 6. For Malaysian companies and Sdn Bhd: 30% in years 1–3, 20% in year 4, 15% in year 5, and 10% from year 6 onward. A company incorporated outside Malaysia is taxed on the foreigner scale instead.
How is RPGT calculated in Malaysia?
Chargeable gain = sale price − purchase price − allowable costs (legal fees, agent commission, renovation receipts). RPGT payable = chargeable gain × applicable rate based on holding period and seller category. Citizens additionally enjoy a once-in-a-lifetime exemption on one residential property and a higher-of RM10,000-or-10%-of-gain annual exemption.
What is the RPGT exemption for citizens?
Two main exemptions apply to Malaysian citizens: (1) once-in-a-lifetime exemption on the disposal of a private residential property, claimable once per individual; (2) annual exemption of RM10,000 or 10% of the chargeable gain, whichever is higher. Gifts between spouses, parent–child, and grandparent–grandchild are also exempt.
When must I file RPGT after selling a property in Malaysia?
Form CKHT 1A (disposer) and CKHT 2A (acquirer) must be filed with LHDN within 60 days of the SPA date. The buyer's solicitor retains 3% of the purchase price for a citizen or PR, 5% for a Malaysian company selling within three years, and 7% for a foreign seller, remitted to LHDN pending final assessment.
Why is selling in year 6 better than year 5?
For citizens, the rate drops from 15% in year 5 to 0% in year 6 — a full elimination of RPGT. For foreigners, the rate drops from 30% to 10%. On a RM200,000 gain, a citizen saves RM30,000 by waiting one more year; a foreigner saves RM40,000. Holding into year 6 is almost always the right move unless you need liquidity urgently or market conditions are deteriorating.
Does RPGT apply to inherited Malaysian property?
Inheritance itself is exempt. However, when you later sell the inherited property, RPGT applies based on your holding period — which starts from the date of acquisition by the deceased (not the date of inheritance). The acquisition price used is the market value at the time of inheritance.