Stamp duty is one of the largest upfront costs when buying property in Malaysia — and in 2026, there are important changes every buyer needs to know. Whether you're a first-time buyer eligible for exemptions or a foreign investor facing the new 8% rate, this guide covers everything from calculation to payment.
What Is Stamp Duty in Malaysia?
Stamp duty is a tax imposed under the Stamp Act 1949 on legal documents related to property transactions. It applies to two key documents:
- Memorandum of Transfer (MOT) — the document transferring property ownership
- Loan Agreement — the document formalising your home loan
Stamp duty is paid by the buyer and must be settled before the documents can be legally registered. There are two types:
- Ad valorem duty — calculated as a percentage of the property value or loan amount (this is what you pay for property)
- Fixed duty — a flat amount for certain document types (not applicable to property transfers)
Unstamped documents cannot be used as evidence in court, making stamping essential for legal protection.
Stamp Duty Rates for Property Transfer (MOT) 2026
Malaysia uses a progressive tiered system for MOT stamp duty. The rate increases as the property value rises:
| Property Value Tier | Stamp Duty Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 – RM500,000 | 2% |
| RM500,001 – RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
These rates apply to Malaysian citizens and permanent residents. Foreign buyers face a different rate — see the section below.
Important: Stamp duty is calculated on the property's market value or the purchase price, whichever is higher. LHDN (Inland Revenue Board) may revalue your property if they believe the transacted price is below market value.
Stamp Duty on Loan Agreement (0.5%)
In addition to MOT stamp duty, you pay 0.5% of the total loan amount as stamp duty on your loan agreement.
Example 1: RM400,000 loan
- 0.5% × RM400,000 = RM2,000
Example 2: RM800,000 loan
- 0.5% × RM800,000 = RM4,000
This is a flat rate — no tiers. It applies to both conventional and Islamic financing facilities.
How to Calculate Stamp Duty: Step-by-Step Examples
Example 1: RM500,000 Property (90% Loan)
MOT Stamp Duty:
| Tier | Calculation | Amount |
|---|---|---|
| First RM100K | 1% × RM100,000 | RM1,000 |
| Next RM400K | 2% × RM400,000 | RM8,000 |
| Total MOT | RM9,000 |
Loan Stamp Duty: 0.5% × RM450,000 = RM2,250
Total Stamp Duty: RM11,250
Example 2: RM800,000 Property (90% Loan)
MOT Stamp Duty:
| Tier | Calculation | Amount |
|---|---|---|
| First RM100K | 1% × RM100,000 | RM1,000 |
| Next RM400K | 2% × RM400,000 | RM8,000 |
| Next RM300K | 3% × RM300,000 | RM9,000 |
| Total MOT | RM18,000 |
Loan Stamp Duty: 0.5% × RM720,000 = RM3,600
Total Stamp Duty: RM21,600
Example 3: RM1,500,000 Property (80% Loan)
MOT Stamp Duty:
| Tier | Calculation | Amount |
|---|---|---|
| First RM100K | 1% × RM100,000 | RM1,000 |
| Next RM400K | 2% × RM400,000 | RM8,000 |
| Next RM500K | 3% × RM500,000 | RM15,000 |
| Next RM500K | 4% × RM500,000 | RM20,000 |
| Total MOT | RM44,000 |
Loan Stamp Duty: 0.5% × RM1,200,000 = RM6,000
Total Stamp Duty: RM50,000
Stamp Duty Exemptions for First-Time Home Buyers 2026
The Malaysian government offers a 100% stamp duty exemption on the MOT for first-time home buyers, extended under Budget 2026:
| Criteria | Details |
|---|---|
| Eligible buyers | Malaysian citizens, first property purchase only |
| Property price cap | Up to RM500,000 |
| Exemption amount | 100% of MOT stamp duty (save up to RM9,000) |
| Extended until | 31 December 2027 |
| Loan stamp duty | Also 100% exempt for properties up to RM500,000 |
| SPA date | SPA must be executed within the eligibility period |
How much do you save? On a RM500,000 property with 90% loan:
- MOT exemption: RM9,000 saved
- Loan stamp duty exemption: RM2,250 saved
- Total savings: RM11,250
To qualify, you must not have previously owned any residential property (including inherited property in some states). The exemption is claimed through your lawyer during the stamping process.
Stamp Duty for Foreign Buyers 2026: New 8% Flat Rate
Budget 2026 introduced a significant change: effective 1 January 2026, non-citizen buyers (excluding permanent residents) pay a flat 8% stamp duty on the MOT, replacing the previous progressive rates.
| Property Price | Citizen MOT Duty | Foreigner MOT Duty (8%) | Difference |
|---|---|---|---|
| RM500,000 | RM9,000 | RM40,000 | +RM31,000 |
| RM1,000,000 | RM24,000 | RM80,000 | +RM56,000 |
| RM1,500,000 | RM44,000 | RM120,000 | +RM76,000 |
| RM2,000,000 | RM64,000 | RM160,000 | +RM96,000 |
Key points:
- Permanent residents (PR) are exempt — they pay the same progressive rates as citizens
- The 8% applies to the full property value, not progressively
- Loan agreement stamp duty remains at 0.5% for all buyers
- This aligns Malaysia with regional peers like Singapore (which charges Additional Buyer's Stamp Duty for foreigners)
For a detailed breakdown, read our complete guide to stamp duty for foreign buyers.
SDSAS: Stamp Duty Self-Assessment System 2026
Since 2026, LHDN has implemented the Stamp Duty Self-Assessment System (SDSAS) for property transactions. Under this system:
- Buyers (or their lawyers) self-assess and calculate stamp duty payable
- Documents must be stamped within 30 days of execution
- LHDN can audit and reassess within 7 years — keep all supporting documents
- Penalties apply for incorrect self-assessment (underpayment)
- The system uses the e-Stamping portal for submission and payment
What this means for you: Your lawyer handles the SDSAS process, but you should keep copies of your SPA, valuation report, and stamping receipts for at least 7 years in case of an audit.
Stamp Duty on Tenancy Agreements
Rental agreements are also subject to stamp duty. The rates depend on the tenancy duration:
| Tenancy Duration | Rate per RM250 of Annual Rent |
|---|---|
| Not exceeding 1 year | RM1 |
| 1 to 3 years | RM2 |
| Exceeding 3 years | RM4 |
Important change for 2026: The previous RM2,400 annual rent exemption has been removed. All tenancy agreements are now subject to stamp duty regardless of the rental amount.
Example: RM2,000/month rent, 1-year tenancy:
- Annual rent: RM24,000
- Units of RM250: RM24,000 ÷ RM250 = 96 units
- Stamp duty: 96 × RM1 = RM96
Stamp duty on tenancy agreements is typically shared between landlord and tenant, or borne by the tenant — depending on negotiation. Read more in our tenancy agreement guide.
Penalties for Late Stamp Duty Payment
Documents must be stamped within 30 days of execution. Late stamping incurs penalties:
| Timeframe | Penalty |
|---|---|
| Within 3 months after deadline | RM50 or 10% of deficient duty (whichever is greater) |
| 3–6 months after deadline | RM100 or 20% of deficient duty (whichever is greater) |
| More than 6 months | RM200 or 30% of deficient duty (whichever is greater) |
Tips to avoid penalties:
- Instruct your lawyer to prioritise stamping immediately after SPA signing
- Use the LHDN e-Stamping system (Sistem e-Hasil) for faster processing
- For tenancy agreements, stamp within 30 days of signing — don't wait until a dispute arises
- Keep proof of stamping dates in case of LHDN queries
FAQs About Stamp Duty Malaysia
Q: When do I need to pay stamp duty?
Within 30 days of executing the SPA or loan agreement. Your lawyer typically handles this as part of the conveyancing process, but the funds must come from you.
Q: Can I pay stamp duty online?
Yes. LHDN's e-Stamping portal allows online assessment and payment. Your lawyer will usually process this on your behalf through the system.
Q: Is stamp duty refundable?
Generally no. However, if a transaction falls through (e.g., loan rejected and SPA cancelled), you may apply to LHDN for a refund within 12 months of the stamping date. Refunds are assessed case by case.
Q: What about property transfers between family members?
Transfers between spouses are exempt from stamp duty. Transfers between parents and children, or between siblings, receive a 50% remission on MOT stamp duty (subject to conditions and state rules).
Q: Who pays stamp duty — buyer or seller?
The buyer pays MOT stamp duty and loan agreement stamp duty. The seller may be liable for stamp duty on the discharge of their existing loan, but this is typically a minimal amount.
Q: Can I include stamp duty in my home loan?
No. Stamp duty must be paid in cash. Some developers offer "stamp duty absorption" packages on new launches, but this is essentially a rebate built into the selling price — not a loan.
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