---
title: "How Much Stamp Duty Do You Pay in Malaysia?"
description: "MOT stamp duty is 1% to 4% in tiers: RM9,000 on a RM500,000 home. First homes up to RM500,000 are exempt until 31 Dec 2027. Foreigners pay a flat 8%."
datePublished: "2026-03-27"
dateModified: "2026-03-27"
canonical: "https://www.superhomes.my/resources/stamp-duty-malaysia-2026"
---

# How Much Stamp Duty Do You Pay in Malaysia?

In 2026 a Malaysian buyer pays MOT stamp duty of 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million and 4% above, plus 0.5% of the loan. That is RM9,000 and RM2,250 on a RM500,000 home with a 90% loan. First homes up to RM500,000 are exempt; foreigners pay a flat 8%.

Stamp duty is one of the largest upfront costs when buying property in Malaysia, and 2026 brought real changes: a flat 8% rate for foreign buyers of residential property, stamp duty self-assessment starting with tenancies and loan documents, and the first-time buyer exemption extended to the end of 2027. This guide covers the rates, worked examples, exemptions, deadlines and penalties.

| Key fact (2026) | Figure |
|---|---|
| MOT duty, Malaysians and PRs | 1% / 2% / 3% / 4% in tiers |
| Loan agreement duty | 0.5% of the loan |
| Foreign buyers, residential | Flat 8% from 1 January 2026 |
| First-time buyer exemption | 100% on MOT and loan, homes up to RM500,000, SPAs to 31 December 2027 |
| Deadline | 30 days from signing |
| Late penalty | RM50 or 10% within 3 months; RM100 or 20% after |
| Tenancy agreements | RM1 to RM7 per RM250 of annual rent, no RM2,400 exemption |

(Sources: Stamp Act 1949, First Schedule items 27(a), 32(a) and 32(ab), and s.47A as amended from 1 January 2025; Budget 2026 first-time buyer extension; checked 30 Sep 2026.)

## What Is Stamp Duty in Malaysia?

Stamp duty is a tax imposed under the **Stamp Act 1949** on legal documents (instruments) related to property transactions, collected by LHDN. When you buy with a loan it applies to two key documents:

1. **Memorandum of Transfer (MOT)**: the document (Form 14A) transferring property ownership to you
2. **Loan Agreement**: the document formalising your home loan or Islamic financing

Stamp duty is paid by the **buyer** and must be settled before the documents can be registered at the land office. There are two types:

- **Ad valorem duty**: calculated as a percentage of the property value or loan amount (this is what you pay on a purchase)
- **Fixed duty**: a flat amount for certain document types, such as extra copies of an agreement (RM10 each)

The SPA itself carries only nominal duty; the big bill is on the MOT. Unstamped documents cannot be used as evidence in court, and the land office will not register an unstamped transfer, so stamping is 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**, for both residential and non-residential property. Foreign buyers pay a flat rate instead: 8% on residential property (see the section below) and 4% on non-residential property such as shops and offices under item 32(aa). (Source: Stamp Act 1949, First Schedule items 32(a) and 32(aa), the 4% tier above RM1 million in force since 1 July 2019; the foreigner flat rate under item 32(aa) in force since 1 January 2024 (Finance (No. 2) Act 2023), with residential property moved to the 8% rate under item 32(ab) from 1 January 2026; checked 5 Oct 2026.)

**Important:** Stamp duty is calculated on the property's **market value or the purchase price, whichever is higher**. If LHDN considers the price too low, it can refer the transfer to the Valuation and Property Services Department (JPPH) and charge duty on JPPH's figure, so a "family discount" price does not reduce the duty.

## 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. (Source: Stamp Act 1949, First Schedule item 27(a); checked 30 Sep 2026.)

**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, and it is the same for citizens and foreigners. 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: RM700,000 Property (90% Loan)

**MOT Stamp Duty:**

| Tier | Calculation | Amount |
|:---|:---|:---|
| First RM100K | 1% × RM100,000 | RM1,000 |
| Next RM400K | 2% × RM400,000 | RM8,000 |
| Next RM200K | 3% × RM200,000 | RM6,000 |
| **Total MOT** | | **RM15,000** |

**Loan Stamp Duty:** 0.5% × RM630,000 = **RM3,150**

**Total Stamp Duty: RM18,150**

### Example 3: 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 4: 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**

### Example 5: The Typical Penang Listing

The median asking price of for-sale homes listed in [Penang](/area/penang) on SuperHomes is **RM1,650,000** (SuperHomes listings, Sep 2026, n=373), so most listed Penang homes reach the 4% tier on the portion above RM1 million. On that price with a 90% loan:

| Item | Malaysian or PR buyer | Foreign buyer (residential) |
|:---|:---|:---|
| MOT stamp duty | RM1,000 + RM8,000 + RM15,000 + RM26,000 = **RM50,000** | 8% × RM1,650,000 = **RM132,000** |
| Loan stamp duty (0.5% of RM1,485,000) | RM7,425 | RM7,425 |
| **Total stamp duty** | **RM57,425** | **RM139,425** |

A foreign buyer pays RM82,000 more MOT duty on the same home. In [Bayan Lepas](/area/penang/bayan-lepas), where many Penang listings sit closer to RM1.45 million, the citizen MOT duty is RM42,000. A foreign buyer's loan is usually smaller, because banks typically lend non-residents a lower margin, which cuts the loan duty but raises the cash needed.

Want your own number without doing the tiered math by hand? Use our free [Stamp Duty Calculator](/tools/stamp-duty-calculator). It handles the progressive tiers, the loan agreement duty, and checks your first-time-buyer exemption eligibility automatically.

## Stamp Duty Exemptions for First-Time Home Buyers 2026

The Malaysian government offers a **100% stamp duty exemption** on both the MOT and the loan agreement for first-time home buyers, extended under Budget 2026:

| Criteria | Details |
|:---|:---|
| **Eligible buyers** | Malaysian citizens (buyer or co-buyer) who have never owned a residential property |
| **Property price cap** | Up to RM500,000 |
| **Exemption amount** | 100% of MOT stamp duty (save up to RM9,000) |
| **Loan stamp duty** | Also 100% exempt (save up to RM2,250 on a 90% loan) |
| **SPA date** | Executed from 1 January 2021 to 31 December 2027 |
| **Units** | One residential unit only |
| **Proof** | Statutory declaration confirming eligibility |

(Sources: Budget 2026 announcement of 10 October 2025 extending the exemption to 31 December 2027, and the gazetted extension orders as reported by Skrine, January 2026; original conditions per the Stamp Duty (Exemption) Orders 2021 as summarised by EY and Skrine; checked 30 Sep 2026.)

**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 never have owned any residential property, individually or jointly, including one you received by inheritance or as a gift. Go one ringgit above RM500,000 and the exemption is lost on the whole price, not just the excess. The exemption is claimed through your lawyer during stamping, with a statutory declaration.

## Stamp Duty for Foreign Buyers 2026: New 8% Flat Rate

**Budget 2026** introduced a significant change: effective **1 January 2026**, non-citizens (other than permanent residents) and foreign companies buying **residential** property pay a **flat 8% stamp duty** on the MOT, up from the flat 4% that applied in 2024 and 2025. It applies to transfers executed from 1 January 2026, even where the SPA was signed earlier.

| 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 not affected: they pay the same progressive rates as citizens
- The 8% applies to the **full property value** (price or market value, whichever is higher), not progressively
- Only **residential** property is affected; foreigners buying commercial or industrial property pay a flat 4% (since 1 January 2024), not the 1% to 4% tiers
- Loan agreement stamp duty remains at 0.5% for all buyers

(Source: Stamp Act 1949, First Schedule item 32(ab) as amended by the Finance Act 2025, following the Budget 2026 announcement; checked 30 Sep 2026.)

For a detailed breakdown, read our [complete guide to stamp duty for foreign buyers](/resources/stamp-duty-foreign-buyers-malaysia-2026).

## SDSAS: Stamp Duty Self-Assessment System 2026

LHDN is moving stamp duty to self-assessment, officially the **Sistem Taksir Sendiri Duti Setem (STSDS)**, in three phases:

| Phase | From | Instruments |
|:---|:---|:---|
| Phase 1 | 1 January 2026 | Leases and tenancies, security documents (such as loan agreements), general stamping |
| Phase 2 | 1 January 2027 | Transfers of real property, including the MOT (where no JPPH valuation is involved) |
| Phase 3 | 1 January 2028 | All other instruments |

Under the system:

- **The payer (or their lawyer)** logs in to MyTax with a tax identification number, uploads the instrument, and self-assesses the duty
- Documents must still be stamped **within 30 days** of execution
- The declaration is treated as the assessment when it is submitted; LHDN can raise an additional assessment within **5 years** of payment, or at any time for fraud or wilful default
- Records must be kept for **7 years** from payment
- The old STAMPS portal was replaced by **e-Duti Setem on MyTax** from 1 January 2026

(Sources: LHDN, Stamp Duty Self-Assessment System (STSDS) page; Stamp Act 1949 amendments gazetted in 2025, as summarised by Rahmat Lim & Partners, March 2025; checked 30 Sep 2026.)

**What this means for you:** For a 2026 purchase, loan and security documents generally fall in phase 1 and are already self-assessed, while your MOT is still assessed by LHDN. From 1 January 2027, phase 2 brings property transfers into self-assessment, but only where no JPPH valuation is involved; an MOT that needs a JPPH valuation stays outside phase 2. Your lawyer handles the filing, but 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. For tenancies signed from 1 January 2025, the rates depend on the tenancy duration and apply to the **full annual rent**:

| Tenancy Duration | Rate per RM250 (or part) of Annual Rent |
|:---|:---|
| Not exceeding 1 year | RM1 |
| More than 1 year, up to 3 years | RM3 |
| More than 3 years, up to 5 years | RM5 |
| More than 5 years or indefinite | RM7 |

**Important change from 2025:** The previous **RM2,400 annual rent exemption** has been removed, and the minimum duty is RM10. All tenancy agreements are now subject to stamp duty regardless of the rental amount. Each extra copy costs RM10. (Source: Stamp Act 1949, First Schedule item 49 as amended by the Finance Act 2024, in force 1 January 2025; checked 30 Sep 2026.)

**Example:** RM2,000/month rent:
- Annual rent: RM24,000
- Units of RM250: RM24,000 ÷ RM250 = 96 units
- 1-year tenancy: 96 × RM1 = **RM96**
- 2-year or 3-year tenancy: 96 × RM3 = **RM288**

Since 1 January 2026 tenancy agreements are stamped by self-assessment on e-Duti Setem through MyTax. Who pays is a matter for the agreement; it is typically borne by the tenant or shared. Read more in our [tenancy agreement guide](/resources/tenancy-agreement-malaysia).

## Penalties for Late Stamp Duty Payment

Documents must be stamped **within 30 days** of execution. For instruments stamped late from 1 January 2025, the penalty is:

| Timeframe | Penalty |
|:---|:---|
| Stamped within 3 months after the deadline | RM50 or 10% of the unpaid duty, whichever is greater |
| Stamped more than 3 months after the deadline | RM100 or 20% of the unpaid duty, whichever is greater |

(Source: Stamp Act 1949 s.47A as amended with effect from 1 January 2025; checked 30 Sep 2026.) On RM9,000 of MOT duty, stamping four months late costs an extra RM1,800.

**Tips to avoid penalties:**
- Instruct your lawyer to prioritise stamping immediately after signing
- Make sure the funds for stamp duty are with your lawyer before the MOT is signed
- 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

## Common Stamp Duty Mistakes

1. **Using the price instead of the market value.** Duty is charged on whichever is higher. Selling to a relative at a discount does not reduce the duty.
2. **Buying at RM501,000 and expecting the first-home exemption.** The RM500,000 cap is a hard ceiling on the price.
3. **Assuming a first home you inherited "doesn't count".** Any residential property you have owned, including an inherited or gifted share, disqualifies you.
4. **Signing a tenancy without budgeting duty.** The RM2,400 exemption is gone; every tenancy now pays at least RM10.
5. **Foreign buyers budgeting 4%.** The flat rate doubled to 8% for transfers from 1 January 2026.

## FAQs About Stamp Duty Malaysia

### Q: How much is stamp duty on a RM700,000 property in Malaysia?

The MOT stamp duty on a RM700,000 property is RM15,000: 1% on the first RM100,000, 2% on the next RM400,000 and 3% on the remaining RM200,000. A 90% loan on the same property adds RM3,150 of loan agreement stamp duty (0.5% of RM630,000), for RM18,150 in total. A foreign buyer would pay RM56,000 of MOT duty at the flat 8%.

### Q: When do I need to pay stamp duty?

Within 30 days of executing the MOT or loan agreement. Your lawyer handles this as part of the conveyancing and pays through LHDN's e-Duti Setem system on MyTax, but the funds must come from you. Late stamping costs RM50 or 10% of the duty within three months, and RM100 or 20% after that.

### Q: Is there an MOT stamp duty waiver in 2026?

Yes, for first-time Malaysian buyers of a residential home priced up to RM500,000. Both the MOT and loan agreement duty are fully exempt for SPAs signed up to 31 December 2027, saving up to RM11,250 with a 90% loan. You must never have owned a home, including one inherited or gifted, and you sign a statutory declaration.

### Q: How much MOT stamp duty does a foreigner pay in 2026?

A non-citizen who is not a permanent resident, or a foreign company, pays a flat 8% of the price or market value on residential property for transfers from 1 January 2026. That is RM40,000 on a RM500,000 condo, against RM9,000 for a Malaysian. Loan agreement duty stays at 0.5%.

### Q: Is stamp duty refundable?

Only in limited cases. If a stamped instrument is spoiled or fails its purpose, for example the sale is cancelled and the transfer is never used, you can apply to LHDN for an allowance for spoiled stamps under section 57 of the Stamp Act. Since 1 January 2022 the application must be made within 24 months. Refunds are assessed case by case.

### Q: What about property transfers between family members?

Transfers between husband and wife are exempt from stamp duty. Transfers by way of love and affection between parents and children, or grandparents and grandchildren, are fully exempt on the first RM1 million of market value, with a 50% remission on the duty on any balance, where the recipient is a Malaysian citizen, for transfers from 1 April 2023. Transfers between siblings get no relief and pay the full tiered duty.

### Q: Who pays stamp duty — buyer or seller?

The **buyer** pays MOT stamp duty and loan agreement stamp duty. The seller pays for their own side, such as discharging their existing loan, which carries only small fixed charges. For a tenancy, the agreement decides; it is usually the tenant or shared.

### Q: Can I include stamp duty in my home loan?

Usually not. Stamp duty is normally paid in cash through your lawyer, and the bank lends a percentage of the price, not the costs. Some developers offer "free MOT" packages on new launches, but Bank Negara requires the loan margin to be applied to the net price after such incentives, so they reduce the cash you pay rather than increase the loan.

---

Ready to calculate your total buying costs? Check out property listings in your preferred area:
- [Kuala Lumpur](/area/kuala-lumpur)
- [Selangor](/area/selangor)
- [Penang](/area/penang)
- [Bayan Lepas](/area/penang/bayan-lepas)