legal finance

Calculating Property Stamp Duty in Malaysia 2026: A Complete Guide

Property Matching AI Editorial Team2026-03-153 Sources
Stamp duty in Malaysia is calculated on a tiered rate of 1%-4% of the property price, applied to the Memorandum of Transfer (MOT). First-time buyers enjoy full stamp duty exemptions on properties up to RM 500,000, a policy extended through 2025-2026 under the national Budget.

Understanding Property Stamp Duty in Malaysia 2026

In Malaysia, stamp duty is an important cost when purchasing property, calculated based on the Memorandum of Transfer (MOT) and loan agreements. This guide provides a complete breakdown on how to calculate stamp duty, recent policy updates, and exemptions available to buyers.

1. Stamp Duty Rates for Property Purchase (2026)

| Property Price Range | Stamp Duty Rate | |---|---| | First RM 100,000 | 1% | | RM 100,001 – RM 500,000 | 2% | | RM 500,001 – RM 1,000,000 | 3% | | Above RM 1,000,000 | 4% |

Example Calculation: RM 650,000 Property

  • First RM 100,000 × 1% = RM 1,000
  • Next RM 400,000 × 2% = RM 8,000
  • Remaining RM 150,000 × 3% = RM 4,500
  • Total Stamp Duty = RM 13,500

2. Stamp Duty on Loan Agreement

Beyond the MOT, stamp duty is also charged on the loan agreement at a flat rate of 0.5% of the total loan amount.

Example: RM 520,000 loan × 0.5% = RM 2,600

3. First-Time Buyer Exemptions (2026)

Under Malaysia's Budget 2023-2026 initiatives:

  • Full stamp duty exemption on MOT for properties priced up to RM 500,000 for first-time buyers
  • Full exemption on loan agreement stamp duty for first-time buyers on loans up to RM 500,000
  • These exemptions are available to Malaysian citizens only

4. Foreign Buyer Stamp Duty

Foreign buyers do not qualify for exemptions and pay full tiered stamp duty. Additional considerations:

  • Higher RPGT applies (30% within 5 years)
  • No exemption on loan agreement stamp duty

5. How to Pay Stamp Duty

  1. Solicitor submits documents via MyStamp (LHDN online portal)
  2. Assessment issued within 3-5 working days
  3. Payment due within 30 days of assessment
  4. Late payment incurs a penalty of 5%-25% of the stamp duty amount

Key Takeaways

  • Stamp duty is tiered: 1% to 4% of property value on the MOT
  • Loan agreement stamp duty is a flat 0.5%
  • First-time Malaysian buyers get full exemption on properties up to RM 500,000
  • Foreign buyers pay full rates with no exemptions
  • Pay via LHDN's MyStamp portal within 30 days to avoid penalties

Frequently Asked Questions

How much is stamp duty on a RM 500,000 property in Malaysia?

For a RM 500,000 property: first RM 100,000 at 1% = RM 1,000; next RM 400,000 at 2% = RM 8,000. Total stamp duty = RM 9,000. However, first-time Malaysian buyers are fully exempt from stamp duty on properties up to RM 500,000.

Are there stamp duty exemptions for first-time home buyers in Malaysia?

Yes. Malaysian first-time buyers enjoy full stamp duty exemption on the Memorandum of Transfer (MOT) for properties priced up to RM 500,000. The exemption also covers the loan agreement stamp duty. This benefit is extended through Budget 2026 and applies to Malaysian citizens only.

What is the stamp duty rate on a home loan in Malaysia?

Stamp duty on a loan agreement is charged at a flat rate of 0.5% of the total loan amount. For example, a RM 400,000 loan would incur RM 2,000 in loan agreement stamp duty. First-time buyers on loans up to RM 500,000 may be exempt.

Do foreigners pay more stamp duty when buying property in Malaysia?

Foreigners pay the same tiered MOT stamp duty rates (1%-4%) as Malaysian buyers but are not eligible for any exemptions. They also pay 0.5% on the loan agreement with no exemption. Additionally, Real Property Gains Tax (RPGT) for foreigners is 30% if the property is sold within 5 years.

Sources & References

  1. [1] Inland Revenue Board Malaysia (LHDN) — Stamp duty tiered rates: 1% (first RM 100k), 2% (RM 100k-500k), 3% (RM 500k-1M), 4% (above RM 1M)https://www.hasil.gov.my
  2. [2] Ministry of Finance Malaysia — First-time buyer full stamp duty exemption on properties up to RM 500,000 extended under Budget 2026https://www.mof.gov.my
  3. [3] MyStamp LHDN — Stamp duty must be paid within 30 days of assessment; late payment penalty 5%-25%https://mystamp.hasil.gov.my
Malaysia

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