RPGT in Malaysia for 2026 and 2027: rates, exemptions and a calculator

RPGT rates

Real Property Gains Tax is charged on the gain when you sell, at a rate that depends on how long you held the property:

RPGT applies to any land or building in Malaysia whatever its use, so the same rates apply to homes, shops, offices and serviced apartments on commercial land. "Companies" here means companies incorporated in Malaysia; foreign companies pay the non-citizen rates.

Did Budget 2027 change RPGT?

No. The Budget 2027 tax measures, tabled on 9 October 2026, include no change to RPGT, so the rates above are expected to apply to sales in 2027 as well. If the Finance Bill changes that, we will update this guide.

RPGT calculator

Estimate the tax on your sale. Use the prices in your sale and purchase agreements, and the allowable costs you can document: legal fees, stamp duty and agent's fees on the purchase and the sale, and improvements that add value.

A worked example

You bought a home for RM500,000 in June 2023 and sell it for RM600,000 in March 2027, three years and nine months later (the 4th year). After RM10,000 of allowable costs, the chargeable gain is RM90,000. Individuals get an exemption of RM10,000 or 10% of the gain, whichever is greater (RM10,000 here), so the tax is 20% of RM80,000 = RM16,000.

Exemptions

• Once in a lifetime: a Malaysian citizen or permanent resident can elect, once, to exempt the gain on the sale of one private residence. The election is made in writing and can't be withdrawn.
• Every sale: individuals are exempt on RM10,000 or 10% of the chargeable gain, whichever is greater.
• Gifts within the family: a transfer by way of gift between husband and wife, parent and child, or grandparent and grandchild is treated as giving no gain and no loss, provided the donor is a Malaysian citizen.

How it is filed

RPGT moved to self-assessment on 1 January 2025: the seller and the buyer each file a return within 60 days of the sale. The buyer retains part of the price and pays it to LHDN within 60 days: the lowest of the cash paid, the seller's self-assessed RPGT, or 3% of the price (7% if the seller is not a citizen or PR). From 2026, RPGT can be paid by instalments and unused losses can be carried forward for up to 10 years of assessment.

Selling with us

Thinking of selling to upgrade into a new launch? We give you a free valuation from recent transactions in your building, market the unit and handle the sale through to completion. Request a valuation.