Budget 2027: how much stamp duty do first-time home buyers save?
Budget 2027 (tabled 9 October 2026) proposes that for first-time buyers signing the SPA (sale and purchase agreement) between 2027 and 2030, homes up to RM500,000 pay no stamp duty, and homes from RM500,000 to RM750,000 get the first RM500,000 exempt and the rest halved. On a RM700,000 home with a 90% loan, stamp duty falls from about RM18,150 to about RM3,450.
First-time buyers under RM500,000 are already fully exempt today, so nothing changes for them. The new relief above RM500,000 is still a proposal; it takes effect once Parliament passes the budget and the order is gazetted. Whether the new rules also cover subsale homes still awaits government confirmation.
How much stamp duty do you pay from RM450,000 to RM760,000?
A purchase carries two stamp duties. The transfer (MOT) is tiered: 1% on the first RM100,000, 2% up to RM500,000 and 3% from RM500,000 to RM1 million. The loan agreement is 0.5% of the loan. Rates in detail are in our stamp duty guide, and you can run your own numbers in the stamp duty calculator.
| Price | Not a first-time buyer | First home, signed in 2026 | First home, signed 2027 to 2030 | Saved from 2027 |
|---|---|---|---|---|
| RM450,000 | RM10,025 | RM0 | RM0 | - |
| RM500,000 | RM11,250 | RM0 | RM0 | - |
| RM550,000 | RM12,975 | RM12,975 | RM863 | RM12,112 |
| RM600,000 | RM14,700 | RM14,700 | RM1,725 | RM12,975 |
| RM650,000 | RM16,425 | RM16,425 | RM2,588 | RM13,838 |
| RM700,000 | RM18,150 | RM18,150 | RM3,450 | RM14,700 |
| RM750,000 | RM19,875 | RM19,875 | RM4,313 | RM15,562 |
| RM760,000 | RM20,220 | RM20,220 | RM20,220 | RM0 |
The higher the price, the bigger the saving, peaking at about RM15,560 at RM750,000. This is cash due within 30 days of signing and it cannot be added to the loan. On a RM700,000 home the 10% down payment is RM70,000 and stamp duty used to add RM18,000 on top; that second sum is where many first-time buyers get stuck. Most of it now goes away.
Why is RM750,000 a cliff?
As the budget is worded, relief is only for first homes priced at RM750,000 or less. Go a little above and you lose all of it, not just the part above the line.
| Price | First-time buyer stamp duty (signed from 2027) |
|---|---|
| RM750,000 | RM4,313 |
| RM751,000 | RM19,910 |
| RM760,000 | RM20,220 |
RM1,000 more on the price means about RM15,600 more in stamp duty. What to do about it:
- Subsale: the price is negotiable anyway. Bring a RM760,000 asking price to RM750,000 or less and you save RM10,000 on the price and about RM16,000 in stamp duty.
- New launch: new launches are fixed-price packages and every buyer gets the same price, so this is not about bargaining. Compare by checking whether the same project has units at RM750,000 or less (a lower floor, a smaller layout) and add the stamp duty into the comparison. How to read the price list: new launch price lists explained.
- Subsale valuation: the current order uses the property's market value, not the agreed price. After your lawyer submits the transfer for stamping, the government valuation department (JPPH) sets the market value; if it is above the limit, there is no relief even if your price is below it. Agreeing RM748,000 on a unit valued at RM760,000 is exactly how buyers lose it. See our valuation guide.
The new band mainly helps people buying new launches in the Klang Valley
Nationally, most homes already sell under RM500,000, so the new band reaches relatively few buyers. Kuala Lumpur and Selangor are different:
| Where | Under RM500,000 | RM500,000 to 700,000 | RM700,000 to 800,000 | Above RM800,000 |
|---|---|---|---|---|
| Malaysia (2025) | 77% | 10% | 3% | 10% |
| Kuala Lumpur (2024) | 54% | 14% | 4% | 28% |
| Selangor (2024) | 63% | 15% | 5% | 18% |
Now new launches. The 248 projects currently for sale on PropertySifu (mostly in the Klang Valley) start at:
| Starting price | Projects | Share |
|---|---|---|
| Under RM500,000 | 71 | 29% |
| RM500,000 to 750,000 | 92 | 37% |
| Above RM750,000 | 85 | 34% |
In other words, the most common price for a first-time buyer of a Klang Valley new launch sits right in the new band. RM500,000 used to be a wall: to get the exemption many buyers moved further out or bought smaller. Now there is partial relief up to RM750,000, which opens up noticeably more choice.
Our view: subsale prices will bunch under RM750,000; new launches much less
Above RM500,000 there is no stamp duty exemption. How much does that line move prices? We looked at subsale and new homes separately:
| Price | Subsale (sales, 2022 to 2024) | New launch (units sold, projects launched from 2018) |
|---|---|---|
| RM490,000 to RM500,000 | 3,088 | 9,478 |
| RM500,000 to RM510,000 | 371 | 6,770 |
| RM590,000 to RM600,000 | 1,706 | 6,385 |
| RM600,000 to RM610,000 | 331 | 5,662 |
Subsale: the band just under RM500,000 has more than 8 times the sales of the band just over it. Resale prices like round numbers anyway (about 5 times at RM600,000), but RM500,000 stands out. New launch: only 1.4 times, against about 1.1 at other round lines. Developers price floor by floor and layout by layout, and rarely bend a unit to fit this line.
So with a second line at RM750,000 from 2027, we expect subsale homes around RM750,000 to be priced towards just under it, which gives subsale buyers a reason to negotiate. New launch prices are unlikely to move much because of it; compare new projects on price per square foot, location and tenure first and treat the stamp duty saving as a bonus.
Who counts as a first-time buyer? Subsale, serviced apartments and joint names
The current conditions (P.U.(A) 53/2021 and 54/2021, as amended by P.U.(A) 448 and 449 of 2025) are short, and the budget did not mention changing them:
| Condition | Current wording | Where buyers get caught |
|---|---|---|
| Who | A Malaysian citizen buying as an individual | Permanent residents, foreigners and companies do not qualify |
| Previous ownership | Has never owned any residential property, including by inheritance or gift, alone or jointly | Inheriting a small share of a parent's house ends eligibility, even if that share was sold |
| How many | One residential unit only | Once used, it is gone |
| Signing date | Currently by 31 December 2027; budget proposes 2027 to 2030 | The SPA date is what counts |
| Price test | Market value, set by the government valuation department | A subsale valued above the limit loses the relief |
Does subsale count? Under the current rules, yes: there is no "bought from a developer" condition, and LHDN's statutory declaration only asks for the seller's name and the title number. Whether the new rules from 2027 cover subsale still awaits government confirmation: the budget speech did not say, and the National House Buyers Association (HBA) has asked the government to clarify. We will update this page once it is confirmed. The subsale process is in our subsale step-by-step guide.
Do serviced apartments and SOHOs count? This is an open conflict. The Finance Act 2025 defines "residential property" to include serviced apartments and SOHOs, but paragraph 4 of LHDN's statutory declaration for the exemption asks you to declare the unit is not a SOHO, SOFO, SOVO or serviced apartment. The Malaysian Bar's April 2026 circular says the law should prevail and has written to LHDN to amend the form. Until LHDN replies, first-time buyers of serviced apartments on commercial title should not count this relief in their budget; treat it as a bonus if it comes. The difference between the two: serviced apartment vs condo.
Buying in joint names? A co-buyer who meets the first-time conditions gets the relief on their share; the co-buyer who does not, pays on theirs. So a couple where one partner already owns a home can still get about half the relief on a joint purchase. Other things to settle before buying jointly: joint-name purchase guide.
What else in the budget matters to home buyers?
| Measure | What it is | Who it helps |
|---|---|---|
| SJKP loan guarantee | Up to RM20 billion of guarantees for an expected 80,000 first-time buyers, 2027 to 2030 | Self-employed people without a fixed salary; see housing loans for the self-employed |
| BSN and Agrobank financing | RM270 million for gig workers to start a business or buy a first home | Delivery riders, e-hailing drivers and other gig workers |
| Abandoned projects stamp duty | Full exemption on loan agreements and transfers for rescuing contractors or developers and original buyers, 2027 to 2030 | Buyers stuck in abandoned projects; see what to do in an abandoned project |
| Public housing | About RM1 billion for Rumah Mesra Rakyat and Residensi Rakyat; Bandar MADANI Bukit Jalil phase 1 registration opens 12 October; at least 2,500 Rumah MADANI units in Belfield | Buyers within the income limits; see affordable housing schemes compared |
| Income tax | Personal relief up from RM9,000 to RM12,000; two middle tax bands cut by 1 percentage point | Slightly higher take-home pay, so a slightly bigger loan approval |
| Minimum wage | From RM1,700 to RM2,000 from June 2027 | Lower-income first-time buyers |
What is not in it: no change to real property gains tax (RPGT), no new rules for foreign buyers (Budget 2026 raised the foreigner transfer stamp duty to 8%; this budget leaves it), no Home Ownership Campaign, and nothing for first-time buyers above RM750,000. The developers' association REHDA asked for full exemption up to RM1 million; it was not granted.
Budget measures are from reports of the 9 October 2026 budget speech (Bernama, The Star, The Edge, EdgeProp). Current conditions are from P.U.(A) 53/2021, 54/2021, 448/2025 and 449/2025 and Malaysian Bar Circular No 128/2026 of 16 April 2026. Stamp duty is our calculation at current LHDN rates with a 90% loan. Price-band shares come from NAPIC public data; starting prices are from projects for sale on PropertySifu. Rules from 2027 are still a proposal and the gazette decides; we will update this page. General information, not legal or tax advice.
Frequently asked questions
Does the Budget 2027 first-home stamp duty relief cover subsale homes?
Under the current rules both new and subsale homes qualify; there is no requirement to buy from a developer. Whether the new rules from 2027 cover subsale was not stated in the budget and still awaits government confirmation; we will update this page once it is confirmed.
I sign a RM600,000 SPA in December 2026. Do I get the new relief?
No. The RM500,000 to RM750,000 band applies only to SPAs signed on or after 1 January 2027. Signed in 2026, a first-time buyer above RM500,000 gets nothing under the current rules and pays about RM14,700 on a RM600,000 home.
I book in 2026 but sign the SPA in 2027. Which year counts?
The SPA signing date. The budget refers to sale and purchase agreements signed from 1 January 2027 to 31 December 2030; the booking date does not count.
My home costs RM780,000. Do I get relief on the first RM750,000?
Not as the budget is worded. Relief is only for homes at RM750,000 or less; above that you lose all of it, not just the part above the line.
I inherited a share of my parents' house and sold it. Am I still a first-time buyer?
No. The order says you must never have owned any residential property, including by inheritance or gift; selling it later does not change that.
Can permanent residents use it?
No, it is for Malaysian citizens only. Permanent residents pay the citizen stamp duty rates but get no first-home relief.
Has the budget been passed?
Not yet. It was tabled on 9 October 2026 and Parliament debates it until late November; the stamp duty relief then needs to be gazetted to take effect.
Tell us the price, whether it is new or subsale, and whether you have ever inherited or co-owned a home. We work out your stamp duty and check the project or unit for problems. (Free, no obligation.)