Stamp duty in Malaysia 2026: MOT and loan agreement rates, first-home exemption, and what you actually pay at RM400k, RM650k and RM1.2m
Buying property in Malaysia in 2026 triggers two stamp duties. The Memorandum of Transfer (MOT) is charged in tiers under the Stamp Act 1949: 1% on the first RM100,000, 2% on RM100,001 to RM500,000, 3% on RM500,001 to RM1,000,000 and 4% above RM1,000,000. The loan agreement is a flat 0.5% of the loan amount. On a RM650,000 condo with a 90% loan that is RM13,500 + RM2,925 = RM16,425, payable within 30 days of signing (section 47, Stamp Act).
The one big relief: Malaysian citizens buying their first residential property at RM500,000 or below pay zero on both instruments. Budget 2026 extended that exemption to SPAs signed by 31 December 2027 (gazetted as P.U.(A) 448/2025 and 449/2025). The older 75% tier for RM500,001 to RM1,000,000 (i-MILIKI) lapsed at end-2023 and was not revived. Non-citizens pay a flat 8% on the transfer from 1 January 2026.
Budget 2027 update (9 October 2026): the government proposes extending the full exemption to SPAs signed up to 31 December 2030 and adding relief for first homes up to RM750,000 (first RM500,000 exempt, the rest halved) from 1 January 2027. Still a proposal; see what Budget 2027 means for home buyers.
What are the stamp duty rates in Malaysia for 2026?
The MOT (also called the transfer instrument, or Form 14A for individual titles) is taxed on the higher of the purchase price or the market value as assessed by JPPH. The tiers are cumulative: you pay 1% on the first slice, 2% on the next, and so on. The rates are unchanged in Budget 2026 for citizens and permanent residents; law-firm Budget 2026 summaries (ZIC Legal) list only the first-home extension and the foreigner rate as changes.
| Instrument | Rate (citizens and PRs) |
|---|---|
| MOT: first RM100,000 | 1% |
| MOT: RM100,001 to RM500,000 | 2% |
| MOT: RM500,001 to RM1,000,000 | 3% |
| MOT: above RM1,000,000 | 4% |
| Loan agreement (conventional or Islamic) | 0.5% of the facility amount, flat |
| MOT: non-citizen individual or foreign company (residential) | 8% flat on the full value, transfers executed from 1 January 2026 (Finance Act 2025) |
Foreigners have a different cost stack altogether (the 8% flat rate, state consent fees, minimum price thresholds); we keep that separate in foreigner buying costs in Malaysia. Note that permanent residents are charged the citizen tiers, not the 8%.
A quick mental shortcut for citizens: RM500,000 costs RM9,000 in MOT duty; every RM100,000 above that up to RM1m adds RM3,000; every RM100,000 above RM1m adds RM4,000.
How much stamp duty do I pay on RM400k, RM650k and RM1.2m?
Assume a 90% loan in each case. The first-home column applies only to Malaysian citizens who have never owned residential property (including by gift or inheritance) and whose SPA is signed by 31 December 2027.
| Purchase price | MOT duty | Loan duty (90% loan) | Total | First home (citizen) |
|---|---|---|---|---|
| RM400,000 | RM1,000 + RM6,000 = RM7,000 | RM360,000 x 0.5% = RM1,800 | RM8,800 | RM0 (both exempt) |
| RM650,000 | RM1,000 + RM8,000 + RM4,500 = RM13,500 | RM585,000 x 0.5% = RM2,925 | RM16,425 | RM16,425 (no exemption above RM500,000) |
| RM1,200,000 | RM1,000 + RM8,000 + RM15,000 + RM8,000 = RM32,000 | RM1,080,000 x 0.5% = RM5,400 | RM37,400 | RM37,400 |
Stamp duty is only one line in the upfront bill. Legal fees on the SPA and the loan, valuation, MRTA and the first round of maintenance charges sit next to it; the full list with numbers is in hidden costs of buying property. If you are on the borderline of RM500,000, the exemption is worth up to RM11,250 (RM9,000 MOT + RM2,250 on a RM450,000 loan) so a unit priced at RM500,000 and one at RM505,000 are further apart than the price tags suggest.
Who qualifies for the first-time buyer exemption in 2026?
The position in September 2026: 100% exemption on both the MOT and the loan agreement for a first residential property priced at RM500,000 or below, for SPAs executed from 1 January 2021 to 31 December 2027. Budget 2026 (tabled 10 October 2025) extended the end date from 2025 to 2027; the gazetted orders are P.U.(A) 448/2025 (transfer) and P.U.(A) 449/2025 (loan).
- Malaysian citizen individuals only. PRs and foreigners do not qualify.
- Never owned residential property anywhere in Malaysia, including a share received by gift, inheritance or joint ownership. A parent putting your name on the family home years ago disqualifies you.
- Residential only: house, condo, apartment, serviced apartment on a residential title. Commercial-title units are outside the order.
- Claimed by your lawyer at stamping with a statutory declaration that you have never owned residential property; LHDN can audit and revoke.
What is gone: the 75% exemption for RM500,001 to RM1,000,000 (i-MILIKI) covered SPAs signed from 1 June 2022 to 31 December 2023 and was not extended in Budgets 2024, 2025 or 2026. Any 2026 listing still advertising "75% stamp duty exemption up to RM1m" is quoting a dead scheme. Other first-home help (Skim Jaminan Kredit Perumahan, PR1MA, RUMAWIP) is covered in first-time buyer schemes.
When is stamp duty paid, and how?
Within 30 days of execution (section 47 of the Stamp Act 1949; 30 days from arrival in Malaysia if signed abroad). In practice your conveyancing lawyer collects the money from you before completion and pays it together with the legal fees. The old STAMPS portal was closed on 31 December 2025; stamping now runs on e-Duti Setem inside MyTax (mytax.hasil.gov.my), paid by FPX or ByrHasil, and the electronic stamp certificate is attached to the original instrument.
- SPA signed. The lawyer submits the MOT/Form 14A for assessment. Under the self-assessment regime (SDSAS) tenancies and general instruments moved to self-assessment on 1 January 2026; property transfers follow on 1 January 2027, after which your lawyer computes the duty and files a return instead of waiting for LHDN adjudication.
- LHDN issues the duty payable (based on price or JPPH market value, whichever is higher).
- You pay through the lawyer within the 30-day window; the loan agreement is stamped the same way once the bank issues the facility documents.
Late penalties (revised 2025): RM50 or 10% of the deficient duty (whichever is higher) if stamped within three months after the deadline; RM100 or 20% beyond three months. An unstamped instrument is also inadmissible as evidence, which matters if you ever need to sue on it.
Is the developer's 'we pay your stamp duty' actually free?
Usually not. The rebate is real money, but it is normally priced into the list price rather than given away. Three things to check before treating it as a discount:
- If you are a first-home buyer at RM500,000 or below, the MOT and loan duty are already zero by law. A "free stamp duty" headline is worth nothing to you; ask for the same amount as a price reduction instead.
- A rebate baked into the price inflates everything priced off it: your loan (and the 0.5% duty on it), your legal fees, and your future RPGT base if the bank's valuation does not support the gross figure. See valuation lower than price.
- Read whether it is a cash rebate at completion or a credit note against the final progress billing. The second one never touches your bank account and cannot be reallocated to renovation.
The full menu of gallery incentives, and which ones cost you money later, is in developer sales tricks.
Frequently asked questions
Is stamp duty charged on the SPA price or the valuation?
On whichever is higher. LHDN refers to JPPH's market value, so a heavily rebated developer price can still be stamped at the higher gross figure. That is one reason a rebate padded into the price is not a free lunch.
Did Budget 2026 extend the first-time buyer stamp duty exemption?
Yes, for homes priced at RM500,000 or below: the 100% exemption on the transfer and the loan agreement now covers SPAs signed up to 31 December 2027 (P.U.(A) 448/2025 and 449/2025). The 75% tier for RM500,001 to RM1,000,000 was not brought back.
Do I pay stamp duty on a new launch before the house is built?
The SPA is stamped at signing and the loan agreement when the bank issues it. For strata units without an individual title yet, the transfer is by Deed of Assignment; the MOT is stamped later when the strata title is issued and transferred. Budget for it either way.
Is the loan agreement stamp duty also exempt for first-home buyers?
Yes, for a first home at RM500,000 or below with an SPA by 31 December 2027, the 0.5% duty on the loan instrument is also fully exempt (P.U.(A) 449/2025).
What if my lawyer misses the 30-day stamping window?
Penalty of RM50 or 10% of the duty (whichever is higher) if stamped within three months of the deadline, RM100 or 20% after that. Ask the lawyer to confirm the stamp certificate date in writing.
General information based on the Stamp Act 1949 First Schedule, the 2025 exemption orders and Budget 2026 as reported by law-firm and portal summaries fetched in September 2026. It is not legal or tax advice; your conveyancing lawyer computes the exact duty at stamping.