Tenancy agreement stamp duty in Malaysia: what LHDN charges in 2026, worked out for a RM2,000-a-month rental
You are renting out a home in Malaysia for RM2,000 a month and need to stamp the tenancy agreement, meaning you pay LHDN (the tax office) a small tax that makes it valid in court. Since 1 January 2025, under the Stamp Act 1949 scale as amended by the Finance Act 2024, LHDN charges RM1 for every RM250 of a year's rent when the tenancy is one year or shorter, and RM3 for every RM250 when it runs for more than one year up to three. On RM2,000 a month the yearly rent is RM24,000, 96 lots of RM250, so a one-year tenancy costs RM96 to stamp and a two-year tenancy RM288, plus RM10 for the second copy, paid within 30 days on LHDN's online portal. By custom the tenant pays. The catch: until 2025 the first RM2,400 of yearly rent was ignored, many online calculators still do that, and an unstamped agreement cannot be used to recover unpaid rent or the deposit until the tax and a penalty are paid.
How is tenancy agreement stamp duty calculated in 2026?
Annual rent, divided into lots of RM250 (rounded up), multiplied by a rate that depends on how long the tenancy runs. The scale is Item 49(a) of the First Schedule to the Stamp Act 1949, as amended by the Finance Act 2024 with effect from 1 January 2025. Two things changed on that date: the RM2,400-a-year exemption disappeared, and the rates for tenancies longer than one year went up.
| Tenancy length | Duty per RM250 (or part) of annual rent | RM2,000/month (RM24,000 a year = 96 lots) |
|---|---|---|
| One year or less | RM1 | RM96 |
| More than one year, up to three years | RM3 | RM288 |
| More than three years, up to five years | RM5 | RM480 |
| More than five years | RM7 | RM672 |
Worked example, step by step, for a two-year tenancy at RM2,000 a month:
- Annual rent: RM2,000 x 12 = RM24,000.
- Lots of RM250: RM24,000 / 250 = 96 (if the answer is not a whole number, round up).
- Rate for a two-year term: RM3 per lot.
- Duty on the original: 96 x RM3 = RM288.
- Duplicate copy for the other party: RM10.
Under the old formula the same two-year tenancy would have been (RM24,000 minus RM2,400) / 250 = 86.4, rounded up to 87 lots at RM2 = RM174. That is the number many websites still show. If a calculator gives you a figure ending in RM174 or RM87 for this example, it is out of date.
Other details: a minimum duty of RM10 applies to the original; a tenancy where the rent steps up during the term is assessed on the average annual rent; and from 1 January 2026 tenancy and lease agreements fall under LHDN's self-assessment regime, submitted through e-Duti Setem in MyTax, with the certificate issued after online payment. The 30-day deadline runs from signing in Malaysia. Late stamping attracts a penalty that rises with how late you are, so stamp first and argue about who pays later.
Who pays the stamp duty, and what deposits are normal?
By Klang Valley practice the tenant pays the stamp duty on the agreement, and the tenant hands over three and a half months' money before moving in. None of this is fixed by law; it is market custom written into the agreement, so if the agreement says otherwise, the agreement wins.
| Item | Market practice | Basis |
|---|---|---|
| Stamp duty on the original | Tenant pays | Custom; the Stamp Act places liability on the lessee for the principal instrument, per StashAway's 2026 guide |
| Duplicate copy (RM10) | Landlord, or split | Custom |
| Security deposit | Two months' rent (one month for tenancies under a year is common) | Custom; refundable at the end less agreed deductions |
| Utility deposit | Half a month's rent | Custom; covers unpaid electricity, water and sewerage bills at move-out |
| Advance rent | One month | The first month's rent, not a deposit |
| Access card deposit | Set by the building, often RM50 to RM200 per card | The management's rule, not the landlord's |
| Agent's fee | Paid by the party who engaged the agent, commonly the landlord, capped by the BOVAEP scale | Not the tenant's bill unless the tenant appointed the agent |
On RM2,000 a month that is RM4,000 security plus RM1,000 utility plus RM2,000 advance rent, RM7,000 at signing, plus RM96 stamp duty for a one-year term (the deposit norms are described the same way by the Malaysia4U rental guide and PropCashflow's 2026 landlord guide). The deposit is the landlord's protection and the tenant's biggest risk: it is refundable in principle, and disputes over deductions are the most common tenancy quarrel in Malaysia because there is no deposit-protection scheme and no tenancy tribunal. Photograph the unit together on move-in day and attach the inventory to the agreement.
Who should not accept a higher deposit: a tenant asked for three or more months' security on an ordinary residential unit. There is no law banning it, but it is above market and usually signals a landlord who has had trouble returning deposits before. For landlords, the tax side of the rent you collect is in rental income tax, and what a realistic rent looks like against the purchase price is in rental yield explained.
What must a tenancy agreement in Malaysia say?
Everything, because there is no Residential Tenancy Act to fill the gaps. A tenancy in Malaysia is an ordinary contract under the Contracts Act 1950, plus the National Land Code's rules on tenancies of three years or less, plus case law. Whatever the agreement does not say, nobody decides for you except a court. The clauses that matter:
- The parties and the property, with IC or passport numbers, the full address and the parcel or unit number.
- Term, start date and renewal option, including the rent for the renewal period or how it will be fixed.
- Rent, due date, payment method and late-payment interest.
- Security and utility deposits: amounts, what they may be deducted for, and the deadline for refund after move-out (14 to 30 days is common practice).
- Who pays stamp duty, and who pays the agent.
- Repairs: landlord for structure, wiring, plumbing and built-in fixtures; tenant for minor repairs below a stated amount and for damage caused by the tenant. Name the amount.
- Permitted use and occupants, subletting and short-term letting (Airbnb-style letting is a separate question, covered in short-term rental rules for condos), pets, renovation.
- Termination and early exit: notice period (two months is common), what happens to the deposit on early termination, and a diplomatic clause if the tenant is an expatriate.
- Landlord's right of entry with reasonable notice, and what happens if the landlord sells during the term.
- Inventory and condition report signed by both, with photographs.
Eviction is not self-help. A landlord cannot change the locks, cut the electricity or remove the tenant's belongings; under Malaysian law that is a route to a claim against the landlord, not a remedy. Recovering possession from a non-paying tenant means notice, then a court action, then a bailiff, and the guides we fetched describe timelines measured in months, not weeks. The agreement should make the paper trail easy: a clear default clause and a stated notice address.
On the Residential Tenancy Act: Malaysia does not have one as of September 2026. The Housing and Local Government Ministry has said for several years that a Residential Tenancy Bill is being prepared; on 4 August 2026 Deputy Minister Datuk Aiman Athirah Sabu told The Star the bill was being finalised to balance the rights of tenants and landlords and to give a faster, cheaper way to resolve disputes, and that the government would not impose rent control. It has not been tabled in Parliament. Until it is, the contract you sign is the only rulebook.
Frequently asked questions
How much is stamp duty on a RM2,000 a month tenancy agreement?
RM96 for a one-year tenancy and RM288 for a two-year tenancy, plus RM10 for the duplicate copy. That is RM24,000 annual rent divided into 96 lots of RM250, at RM1 per lot for one year or RM3 per lot for one to three years, under the Stamp Act scale in force since 1 January 2025.
Is the RM2,400 exemption still deducted from the annual rent?
No. The Finance Act 2024 removed it with effect from 1 January 2025. Duty is now charged on the full annual rent from the first ringgit, with a minimum of RM10. Calculators that still subtract RM2,400 are using the pre-2025 formula.
Who pays the stamp duty on a tenancy agreement, landlord or tenant?
By market practice the tenant pays the duty on the original agreement and the landlord pays the RM10 duplicate. It is negotiable and should be written into the agreement. Whoever pays, the agreement must be stamped within 30 days of signing.
What happens if the tenancy agreement is not stamped?
It is still a valid contract between you, but it cannot be produced as evidence in court, for example to recover unpaid rent or the deposit, until the duty and a late-stamping penalty are paid. Stamping late is always possible; it just costs more.
How much deposit can a landlord ask for in Malaysia?
There is no legal cap. Market practice is two months' security plus half a month for utilities, with one month's rent in advance. Anything above that is unusual for an ordinary residential tenancy and worth questioning.
Is there a Residential Tenancy Act in Malaysia yet?
Not as of September 2026. The ministry told The Star on 4 August 2026 that the Residential Tenancy Bill was being finalised; it has not been tabled. Tenancies are still governed by the Contracts Act 1950, the National Land Code and the terms of your agreement.
General information based on the Stamp Act 1949 scale as amended by the Finance Act 2024, LHDN's e-Duti Setem process and published market guides, not legal or tax advice. Rates and filing rules can change in a Budget; check the LHDN portal for the scale on the day you stamp, and have a lawyer review an agreement for anything other than a standard residential let.