Complete Stamp Duty Guide Malaysia 2026: Rates, Exemptions & Calculator

Buying a property in Malaysia comes with costs beyond the purchase price. Stamp duty is one of the biggest — and one that many first-time buyers underestimate until they're sitting in the lawyer's office.

This guide covers everything you need to know about stamp duty in Malaysia for 2026: the rates, how to calculate it, exemptions you might qualify for, and the full picture of upfront costs so you can plan properly.

What Is Stamp Duty (MOT)?

Stamp duty in the property context refers to the tax levied on the Memorandum of Transfer (MOT) — the legal document that transfers ownership of a property from seller to buyer. It is governed by the Stamp Act 1949 and collected by the Inland Revenue Board (LHDN).

You pay stamp duty when you register the property under your name at the Land Office. It is not optional — without paying, the transfer cannot be registered, and you don't legally own the property.

There are two separate stamp duty charges when buying property:

1. MOT stamp duty — on the property purchase price
2. Loan agreement stamp duty — on the loan amount (if you're taking a mortgage)

Stamp Duty Rates 2026

MOT stamp duty in Malaysia uses a tiered (ad valorem) rate based on the property price:

These rates have remained unchanged for several years and apply to both residential and commercial properties unless an exemption applies.

Worked Example: RM500k Property

Let's calculate stamp duty for a RM500,000 property step by step:

For a RM500,000 property, you pay RM9,000 in MOT stamp duty.

Now let's look at a RM750,000 property to see the third tier in action:

You can use the Celik Finance home calculator to estimate stamp duty instantly — just enter your property price and it calculates the tiered amount automatically.

Loan Agreement Stamp Duty

In addition to MOT stamp duty, you also pay stamp duty on the loan agreement itself. This is separate from the property transfer.

The rate is a flat 0.5% of the loan amount.

Example: RM450,000 loan (90% of RM500,000 property)

• Loan agreement stamp duty = 0.5% × RM450,000 = RM2,250

So for a RM500,000 property with 90% financing:

• MOT stamp duty: RM9,000
• Loan agreement stamp duty: RM2,250
• Combined stamp duty: RM11,250

This is before legal fees and other disbursements. Keep reading for the full breakdown.

Stamp Duty Exemptions 2026

Several exemptions can significantly reduce or eliminate your stamp duty bill. Here are the key ones applicable in 2026:

First-Time Buyer Exemption (Residential Property)

First-time homebuyers in Malaysia are eligible for MOT stamp duty exemption on properties priced up to RM500,000. The exemption applies to the portion between RM100,001 and RM500,000 (the 2% band), while the first RM100,000 at 1% is still payable.

Effective savings for a RM500k property:

• Without exemption: RM9,000
• With first-time buyer exemption: RM1,000 (only the 1% tier on first RM100k)
• Savings: RM8,000

To qualify, you must:

• Be a Malaysian citizen
• Have never owned a residential property before (check through LHDN and Land Office records)
• Purchase a residential property (not commercial)

The exemption applies to one property only and is claimed through your SPA and lawyer when submitting the MOT.

Rumah Mampu Milik (Affordable Housing)

Properties under government affordable housing schemes — including PR1MA, Rumah Selangorku, PPA1M, and similar state programmes — typically carry full or partial stamp duty exemptions. The exact exemption depends on the scheme and state.

Check with your developer or the relevant housing authority for the specific exemption applicable to your unit.

Loan Agreement Stamp Duty Exemption

First-time buyers who qualify for the MOT exemption may also be entitled to a full exemption on loan agreement stamp duty for properties up to RM500,000. This saves an additional RM2,250 on a RM450,000 loan.

HOC (Home Ownership Campaign)

The Home Ownership Campaign (HOC), when active, offers full MOT stamp duty exemption for all buyers (not just first-timers) on participating developer projects. HOC has been run periodically since 2019 and may return in future cycles.

As of 2026, check the KPKT (Ministry of Housing and Local Government) website for the current status of any active campaigns.

Total Upfront Costs Breakdown

Stamp duty is only part of the upfront cash you need. Here's the full picture for a RM500,000 property with 90% loan:

This is why financial advisors often say you need 15-20% of property price in cash before buying — see how much salary you need for a RM500k house for the full affordability picture, since the 10% downpayment alone isn't enough.

Legal fees are calculated on a tiered scale set by the Bar Council and are not negotiable, though some firms offer rebates within permitted limits.

How to Save on Stamp Duty

1. Claim Your First-Time Buyer Exemption

If you've never owned a home before, don't overlook this. Make sure your lawyer submits the correct form (PDS 1 or equivalent) to claim the exemption. Inform your lawyer upfront that you are a first-time buyer.

2. Buy Under RM500,000 if Possible

The first-time buyer exemption applies up to RM500,000. A property at RM499,000 qualifies for the full exemption; one at RM501,000 does not — and attracts the 3% tier on the excess. If you're borderline, this is worth negotiating with the seller.

3. Check for HOC or State Schemes

Developer projects participating in HOC or state housing schemes may carry exemptions beyond first-time buyer status. Ask the developer before signing the SPA.

4. Use EPF Account 2 to Fund Upfront Costs

If stamp duty and legal fees are straining your cash flow, remember that you can withdraw from EPF Account 2 to cover property-related upfront costs — not just the downpayment. Plan your EPF withdrawal early to ensure the funds arrive before your legal fees are due.

FAQ

When do I pay stamp duty? Stamp duty is payable within 30 days of the SPA being signed. Your lawyer typically handles the payment on your behalf from funds you provide in advance.

Can I pay stamp duty in installments? No — stamp duty must be paid as a lump sum. Late payment incurs penalties under the Stamp Act 1949.

Is stamp duty the same as real property gains tax (RPGT)? No. Stamp duty is paid by the buyer when purchasing. RPGT is paid by the seller on gains from the sale, and the rates depend on how long they held the property.

Does stamp duty apply to subsale and new launches? Yes, stamp duty applies to both subsale (secondary market) properties and new launches from developers. The rates are the same.

What if my property price changes after signing the SPA? Stamp duty is calculated on the final transacted price in the SPA. If the price is adjusted (e.g., through negotiation or rebates), the stamp duty is recalculated accordingly.

Do foreigners pay a different stamp duty rate? The stamp duty rates are the same for foreigners, but foreigners are not eligible for first-time buyer exemptions. Foreigners also face a minimum property purchase threshold of RM1,000,000 in most states.