Selling property in Malaysia in 2026: RPGT by holding year, the full cost stack, and what a RM150,000 paper gain really nets in year 4
Selling property in Malaysia as a citizen or PR in 2026 costs you four things: Real Property Gains Tax (RPGT) on the net gain at 30% if you sell within 3 years of buying, 20% in year 4, 15% in year 5 and 0% from year 6 (RPGT Act 1976, Schedule 5; Budget 2026 left the rates untouched); the agent's fee, capped at 3% of the price under the Seventh Schedule of the Valuers, Appraisers, Estate Agents and Property Managers Rules (plus 8% SST); your lawyer's scale fee (1.25% on the first RM500,000, 1% on the next RM7 million under the Solicitors' Remuneration Order 2023); and an early-settlement penalty if the loan is still inside its lock-in.
The buyer, not you, pays the transfer stamp duty. But your buyer's lawyer must retain 3% of the price and remit it to LHDN within 60 days (section 21B) if you have owned for under six years, and you file CKHT 1A within 60 days and settle the balance within 90 days. Worked example below: bought RM500,000, sold RM650,000 in year 4, RPGT about RM20,475 and total costs about RM49,000.
What are the RPGT rates in 2026, and which exemptions apply?
The rate depends only on how long you held the property, counted from the SPA date of your purchase to the SPA date of your sale. The 2026 schedule for Malaysian citizens and permanent residents, as confirmed by StashAway, ClearTax and Ziba's 2026 guides:
| Disposal in | Citizen / PR | Malaysian company | Non-citizen (see foreigner guide) |
|---|---|---|---|
| Years 1 to 3 | 30% | 30% | 30% |
| Year 4 | 20% | 20% | 30% |
| Year 5 | 15% | 15% | 30% |
| Year 6 onwards | 0% | 10% | 10% |
Three exemptions matter for individuals:
- Schedule 4 exemption: RM10,000 or 10% of the chargeable gain, whichever is higher, deducted from every disposal automatically.
- Once-in-a-lifetime private residence exemption (Paragraph 9, Schedule 3): a citizen or PR can elect, via CKHT 3, to exempt the whole gain on one residential property they own and occupy (or that is certified fit for occupation). The election is irrevocable, so do not burn it on a small gain in year 5 if a bigger sale is coming.
- Gifts within the family (spouse, parent-child, grandparent-grandchild) are treated as no gain, no loss; see transferring property to family.
Foreign sellers have a different table and no lifetime exemption; that is in RPGT for foreigners selling in Malaysia.
Selling at cost to someone close? LHDN goes by the JPPH market value, not your contract price; see selling at the price you paid.
What can you deduct from the gain, and what is the 3% retention?
RPGT is charged on the net gain, not the price difference. Disposal price less acquisition price, then less these allowable costs (RPGT Act, Schedule 2):
- Incidental costs of buying: stamp duty on the MOT, legal fees, valuation fee at purchase.
- Incidental costs of selling: agent commission, legal fees, advertising, valuation.
- Capital expenditure that enhanced the property: renovation, extensions, built-ins, with invoices. Repairs and maintenance do not count.
- Any compensation received for damage is deducted from cost.
Keep the purchase-side receipts from day one; LHDN requires records for seven years and a missing invoice is a lost deduction.
The retention sum: under section 21B, the buyer (in practice the buyer's lawyer) withholds a slice of the price and remits it to LHDN within 60 days of the SPA as security for your RPGT. For a citizen or PR seller (Part I) it is 3%; a company incorporated in Malaysia is also 3%, and 7% applies to non-citizens and foreign companies. Once you have held for the full five years and your rate is 0%, no retention is required. The retention is not extra tax: LHDN sets it off against your assessed RPGT and refunds any excess, and from 1 January 2026 (per SuperHomes' Budget 2026 summary) the acquirer may remit only the actual tax where it is lower than the retention.
Filing: you file CKHT 1A and the buyer files CKHT 2A, both within 60 days of the SPA, online via e-CKHT on MyTax (mandatory since 1 January 2025). You settle any balance within 90 days of disposal. Miss the 60 days and LHDN's stated penalty for a late return runs up to three times the tax.
What else does selling cost besides RPGT?
| Cost | How much | Minimum, extras, conditions | Source |
|---|---|---|---|
| Estate agent fee | Up to 3% of the sale price | Minimum RM1,000; plus 8% SST on the fee | Seventh Schedule (Rule 48), Act 242 rules |
| Your lawyer (SPA on the seller side) | 1.25% on first RM500,000, 1% on next RM7,000,000 | Minimum RM500; plus disbursements | Solicitors' Remuneration Order 2023 |
| Discharge of charge / redemption | A small fixed legal item | Ask for the quote | Standard conveyancing step |
| Early-settlement (lock-in) penalty | Typically 2% to 3% of the outstanding loan | If settled within lock-in, commonly 3 to 5 years | Published 2026 loan guides; your letter of offer rules |
| RPGT | Per the table above | On the net gain | RPGT Act 1976 |
| Transfer stamp duty (MOT) | RM0 for you | The buyer pays it | Stamp Act 1949 |
- Estate agent fee: the 8% SST on the fee is per Ziba's 2026 seller guide.
- Discharge of charge / redemption: a small fixed legal item to release the bank's charge.
- Early-settlement (lock-in) penalty: some banks dropped it in 2025.
The lock-in penalty is the one sellers forget. Whether your loan is full-flexi or semi-flexi does not remove it, but the letter of offer sets both the period and the percentage; we unpack the fine print in full-flexi vs semi-flexi home loans. If you are selling a new-launch unit you have barely lived in, the lock-in and the 30% RPGT tier usually land together; the resale maths for that scenario is in new launch vs subsale.
Worked example: bought RM500,000, sold RM650,000 in year 4
Citizen seller, no lifetime exemption used, sale in the fourth year (20% tier). Original purchase legal fees are left out to keep it readable; add yours in.
| Step | RM |
|---|---|
| Disposal price | 650,000 |
| Less acquisition price | (500,000) |
| Less agent fee 3% | (19,500) |
| Less seller's legal fee (SRO 2023: 1.25% x 500,000 + 1% x 150,000) | (7,750) |
| Less stamp duty paid when buying (1% x 100,000 + 2% x 400,000) | (9,000) |
| Chargeable gain | 113,750 |
| Less Schedule 4 exemption (higher of RM10,000 or 10% = 11,375) | (11,375) |
| Net chargeable gain | 102,375 |
| RPGT at 20% (year 4) | 20,475 |
| Retention already remitted by buyer's lawyer (3% x 650,000) | 19,500 |
| Balance you pay LHDN within 90 days | 975 |
Total cost of the sale: agent RM19,500 + SST RM1,560 + legal RM7,750 + RPGT RM20,475 = about RM49,300, so the RM150,000 paper gain nets roughly RM100,700 before any lock-in penalty. If the loan is still inside a 3% lock-in on, say, a RM400,000 balance, subtract another RM12,000. Wait until year 6 and the RPGT line drops to zero; elect the lifetime exemption on this sale and it also drops to zero, but you can never use it again.
Frequently asked questions
What is the RPGT for commercial property?
Same holding-period table: an individual citizen pays 30/20/15% in years 1 to 5 and 0% from year 6 on a shop lot or office too. The difference is exemptions: the once-in-a-lifetime exemption is for a private residence only, so a commercial unit never qualifies, and if the unit is held through a Sdn Bhd the company rate of 10% applies from year 6.
Does the holding period run from the SPA date or the title date?
From the date of the purchase SPA (or the date of the developer's SPA for a new launch) to the date of the sale SPA. Vacant possession and strata title issue dates do not matter.
Do I still pay RPGT if I sell at a loss?
No tax, but you still file CKHT 1A within 60 days, and the allowable loss can be set off against a future chargeable gain.
Who pays the 3% retention?
It comes out of your sale proceeds: the buyer's lawyer holds back 3% of the price and remits it to LHDN within 60 days. It is credited against your RPGT and any excess is refunded after assessment.
Can I use the once-in-a-lifetime exemption on a unit I rented out?
The exemption is for a private residence you own and occupy, or that is certified fit for occupation as a residence. LHDN looks at the facts; a unit that was purely a rental investment is a weak claim. Ask a tax agent before you elect, because the election is irrevocable.
General information based on the RPGT Act 1976, LHDN's disposer and acquirer guidance, the Solicitors' Remuneration Order 2023 and BOVAEP's fee schedule, as published and fetched in September 2026. It is not tax or legal advice; the lock-in and outstanding-loan figures in the example are illustrations, and your own RPGT depends on your receipts.