RPGT Malaysia 2026: How to Calculate Real Property Gains Tax

RPGT (Real Property Gains Tax, or Cukai Keuntungan Harta Tanah / CKHT) is charged on the gain when you sell property in Malaysia. A Malaysian citizen or PR pays 30% if they sell within 3 years, 20% in the 4th year, 15% in the 5th year and 0% from the 6th year, after an exemption of RM10,000 or 10% of the gain, whichever is higher.

This guide shows how LHDN works out the chargeable gain, which costs you can deduct, how the 3% the buyer's lawyer holds back fits in, and four worked examples in RM.

RPGT rates 2026

LHDN groups sellers ("disposers") into three categories under Schedule 5 of the Real Property Gains Tax Act 1976. These rates apply to disposals from 1 January 2022 onwards.

Category I: Malaysian citizens and permanent residents (individuals), and partnerships

• Sold within 3 years: 30%
• Sold in the 4th year: 20%
• Sold in the 5th year: 15%
• Sold in the 6th year or later: 0%

Category II: companies incorporated in Malaysia, trustees and registered bodies

• Within 3 years: 30% · 4th year: 20% · 5th year: 15% · 6th year or later: 10%

Category III: non-citizens who are not PRs, and companies not incorporated in Malaysia

• Within 5 years: 30% · 6th year or later: 10%

The holding period runs from the date you acquired the property to the date you dispose of it. Both dates are normally the date of the sale and purchase agreement (SPA), not the date the title is transferred or the date you got the keys. If there's no written agreement, LHDN uses the completion date instead.

How to calculate RPGT step by step

1. Acquisition price = what you paid for the property + incidental acquisition costs (fees paid to your lawyer, valuer, surveyor, agent or accountant), minus any insurance payout or compensation you received for damage to the property.
2. Disposal price = the selling price − enhancement costs − costs of defending your title − incidental disposal costs (agent commission, lawyer, valuer).
3. Chargeable gain = disposal price − acquisition price.
4. Exemption (individuals only) = RM10,000 or 10% of the chargeable gain, whichever is higher.
5. RPGT = (chargeable gain − exemption) × the rate for your holding period.

Enhancement costs are spending that raises or preserves the value of the property and is still reflected when you sell. LHDN's own example is renovating the kitchen. Repainting and repairs from normal wear generally won't count, so keep receipts and be ready to show what each payment improved.

Not deductible: housing loan interest, the cost of filling in your RPGT forms, and anything you've already claimed against income tax. LHDN's cost guidance lists professional fees as incidental costs; if you want to claim anything else (stamp duty or advertising, for example), ask your lawyer or tax agent before filing.

Older property: for disposals by Category I owners from 12 October 2019, spending incurred before 1 January 2013 isn't allowed when working out the price. If you bought long ago, your lawyer or tax agent will need to work out your acquisition price.

Worked example 1: selling a condo in the 4th year

Aina signed an SPA for a condo on 15 March 2023 at RM400,000 and paid RM4,500 in legal fees. She spent RM20,000 renovating the kitchen. She signs an SPA to sell it on 10 June 2026 for RM520,000, paying RM10,400 agent commission and RM3,000 in legal fees.

• Acquisition price: RM400,000 + RM4,500 = RM404,500
• Disposal price: RM520,000 − RM20,000 − RM10,400 − RM3,000 = RM486,600
• Chargeable gain: RM486,600 − RM404,500 = RM82,100
• Exemption: 10% of RM82,100 is RM8,210, which is less than RM10,000, so RM10,000
• Holding period: 15 March 2023 to 10 June 2026 is 3 years and about 3 months, so she sells in the 4th year (20%)
• RPGT: (RM82,100 − RM10,000) × 20% = RM14,420

Her buyer's lawyer holds back 3% of RM520,000 = RM15,600 and pays it to LHDN. That covers her RPGT, and the extra RM1,180 is credited against her tax, so she can follow up with LHDN to have it refunded once the RPGT is assessed.

Worked example 2: the same sale after 5 years

Suppose Aina waits and signs the sale SPA on 20 March 2028, just over five years after she bought. Same prices and costs.

• Chargeable gain: RM82,100
• Holding period: 6th year, so the rate is 0%
• RPGT: RM0

Waiting about 21 months saves her RM14,420. She still has to file Form CKHT 1A within 60 days of the sale, even though the tax is zero. If you're close to a cut-off, compare the RPGT you'd save against your extra loan interest, maintenance and the risk of the price moving. A housing loan calculator shows what holding the loan longer will cost you.

Worked example 3: using the private residence exemption

Ravi sells the home he lives in during the 3rd year, with a chargeable gain of RM60,000.

• Without the exemption: (RM60,000 − RM10,000) × 30% = RM15,000
• With the private residence exemption under section 8: RM0

Every Malaysian citizen or PR can use this exemption once in their lifetime, for a house they own and live in (or that is certified fit to live in) as a home. You choose to use it on Form CKHT 3, filed through e-CKHT, and you can't take that choice back. If Ravi expects to sell a different home within five years at a bigger gain, he may want to keep the exemption for that sale and pay the RM15,000 now. Work out both options before you file.

Worked example 4: a foreign owner selling after 6 years

Daniel is not a Malaysian citizen or PR. He sells a house for RM800,000 in the 7th year, with a chargeable gain of RM150,000.

• Exemption: 10% of RM150,000 = RM15,000 (higher than RM10,000)
• RPGT: (RM150,000 − RM15,000) × 10% = RM13,500
• Buyer's retention: 7% of RM800,000 = RM56,000

The retention is far more than his actual tax, so most of it sits with LHDN until his assessment is done. From disposals in 2026 there's a new option that helps here (see below).

The 3% (or 7%) the buyer holds back

The buyer (in practice, the buyer's lawyer) must keep back part of the price and pay it to LHDN within 60 days of the disposal date. The amount is the lower of the full cash price or:

• 3% if the seller is a Category I individual (citizen or PR)
• 5% if the seller is a company that sells within 3 years, and 3% from the 4th year
• 7% if the seller is a foreigner or foreign company (Category III)

From disposals in the 2026 year of assessment, the buyer can instead remit an amount equal to the seller's deemed assessment, if the seller tells the buyer that figure before the remittance is made. If the buyer misses the 60-day deadline, LHDN adds a 10% increase on the unpaid amount, which becomes the buyer's debt to the government.

The retention is not your final tax. If it's less than your RPGT, you pay the balance. For disposals from 2025, that balance is due within 90 days of the disposal date.

Filing: forms and deadlines

• Seller: Form CKHT 1A within 60 days of the disposal date. Use CKHT 3 instead when claiming the private residence exemption, or when there's no gain (a loss, or a "no gain no loss" transfer).
• Buyer: Form CKHT 2A within 60 days of the acquisition date.
• Since 1 January 2025, all CKHT forms must be filed online through e-CKHT on MyTax. Paper forms are treated as not filed.
• Keep your records for 7 years from the end of the year of assessment.
• Joint owners each file their own form for their share.

Penalties are heavy. Not filing CKHT 1A on time, or not declaring a taxable sale at all, can cost up to 3 times the tax. An incorrect return can bring a penalty of up to 100% of the tax you under-declared.

Transfers with no RPGT

Some transfers are treated as "no gain no loss", so there's no RPGT for the person transferring:

• A gift between husband and wife, parent and child, or grandparent and grandchild, where the giver is a Malaysian citizen
• A transfer between spouses, or between ex-spouses under a divorce court order, where the person transferring is a Malaysian citizen
• Property passing from a deceased person's estate to the beneficiaries

A gift to a sibling, cousin or friend is not on that list. LHDN treats it as sold at market value, so the giver may owe RPGT even though no money changed hands. Stamp duty on the transfer is a separate cost; see our property stamp duty guide.

Common mistakes

• Counting the holding period from the key handover or title date. RPGT uses the SPA dates, so a few weeks can push you into a higher rate.
• Thinking the 3% retention is the tax. It's a prepayment. You may owe more, or get some back.
• Not filing because the tax is zero. After 5 years, or when you use an exemption, you still have to file CKHT 1A or CKHT 3 within 60 days.
• Deducting loan interest. It's not an allowable cost, however much you paid.
• Using the once-in-a-lifetime exemption on a small gain without checking if a bigger sale is coming.
• Throwing away renovation receipts. Without proof, LHDN can disallow your enhancement costs.

When you sell, remember the bank also needs a redemption statement for any outstanding loan. Our guide to housing loan early settlement shows how that figure is worked out, and our SPA and loan legal fees guide covers the lawyer's costs you can include as incidental costs.

This guide is general information based on LHDN's published RPGT guidance. For a large sale, an inherited property or company shares, get advice from a lawyer or licensed tax agent.