RPGT: The Property Gains Tax Every Seller Should Know
When you sell a property at a profit, the government takes a cut of the gain. How big a cut depends almost entirely on one thing — how long you held it. Here are the 2026 numbers.
RPGT catches a lot of sellers by surprise — especially those who sell early for a quick gain. Understand how it scales with holding period and you can plan your exit so the tax does not swallow your profit.
What RPGT actually taxes
It taxes the gain, not the price. If you buy at RM400,000 and sell at RM520,000, the gain is RM120,000 — and your legal fees, agent commission and qualifying improvement costs come off that gain before the rate applies. So the real taxable figure is usually smaller than the headline profit.
The 2026 RPGT rates
| Sold in… | Citizen / PR | Foreigner | Company |
|---|---|---|---|
| Years 1–3 | 30% | 30% | 30% |
| Year 4 | 20% | 30% | 20% |
| Year 5 | 15% | 30% | 15% |
| Year 6 onward | 0% | 10% | 10% |
The single biggest lever for a citizen is right there in the last row: hold into the sixth year and the RPGT rate drops to zero.
A worked example
A citizen buys at RM400,000 and later sells at RM520,000 — a gain of RM120,000. The individual exemption (the greater of RM10,000 or 10% of the gain = RM12,000) brings the taxable gain to RM108,000.
Same property, same profit — tens of thousands of ringgit different, decided purely by when you sell. (Costs further reduce the gain; figures are illustrative.)
Key exemptions for citizens
- Once-in-a-lifetime private residence exemption — a citizen or PR can elect it one time, on one qualifying residential property (claimed on form CKHT 3; the election is irrevocable).
- Individual exemption — the greater of RM10,000 or 10% of the chargeable gain, on a whole-share disposal.
- Allowable costs — legal fees, agent commission, and qualifying enhancement costs are deducted from the gain.
- Family transfers are not automatically exempt — gifts between spouses, parent–child transfers and inherited property each need their own check.
The takeaway
For a citizen, holding to year 6 removes RPGT entirely — a powerful reason not to flip too fast. But do not let tax alone drive the decision: if the market, your needs or a better opportunity say sell, a tax bill on a real profit is still a good problem to have. Plan the timing, keep every cost receipt, and get a tax agent to confirm your exemptions.
Thinking of selling? Let’s check your RPGT first
Tell me when you bought and roughly what you would sell for — I will sketch the RPGT picture and the exemptions you may qualify for before you list. I am Louis Koh, over a decade in Johor Bahru property.
Frequently asked questions
What is RPGT?
A tax on the profit when you dispose of a property — the gain, not the sale price. Allowable costs reduce the taxable gain.
How much RPGT does a citizen pay in 2026?
30% within the first 3 years, 20% in year 4, 15% in year 5, and 0% from year 6 onward.
Do foreigners pay more RPGT?
Yes — 30% for the first 5 years, then 10% from year 6. Companies pay 30% in years 1–3, 20% in year 4, 15% in year 5, and 10% from year 6 onward.
How can I legally reduce RPGT?
Hold longer (0% from year 6 for citizens), use the once-in-a-lifetime residence exemption if eligible, claim the RM10,000-or-10% individual exemption, and deduct allowable costs. Confirm with a tax agent or HASiL.
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