Stamp Duty Remission for First-Time Homebuyers Malaysia 2026
A Malaysian citizen buying a first home priced at RM500,000 or less pays zero stamp duty on both the Memorandum of Transfer (MOT) and the housing loan agreement, as long as the Sale and Purchase Agreement (SPA) is signed by 31 December 2027. On a RM500,000 home with a 90% loan that is RM11,250 you keep. Above RM500,000 there is no partial relief: the full tiered duty applies.
Stamp duty (duti setem) on the MOT and the loan agreement is one of the biggest cash costs a first-time buyer faces, alongside the 10% downpayment and legal fees. The relief comes from two federal exemption orders, gazetted in 2021 and extended in 2025 to cover SPAs signed up to the end of 2027. This guide covers who qualifies, how much you save, the statutory declaration, how joint purchases are treated, and the service-apartment question that catches many buyers out.
At a Glance: First-Time Homebuyer Stamp Duty Exemption Tiers (2026)
| Property Price Tier | MOT Stamp Duty | Loan Agreement Stamp Duty | What You Save |
|---|---|---|---|
| Up to RM500,000 (first home, citizen) | 100% exempt (RM0) | 100% exempt (RM0) | Up to RM9,000 on the MOT plus 0.5% of the loan (RM11,250 on RM500,000 with a 90% loan) |
| RM500,001 and above | Full tiered duty: 1% / 2% / 3% / 4% | Full 0.5% of the loan | Nothing: the exemption does not apply at all |
| Not a first home, or not a citizen | Full tiered duty (foreigners: flat 8% on residential) | Full 0.5% | Nothing |
The exemption is granted by the Stamp Duty (Exemption) Order 2021 [P.U.(A) 53/2021], read with the 2025 amendment [P.U.(A) 448/2025], for the instrument of transfer, and by the Stamp Duty (Exemption) (No. 2) Order 2021 [P.U.(A) 54/2021], read with [P.U.(A) 449/2025], for the loan agreement. Both cover SPAs executed from 1 January 2021 to 31 December 2027. (Source: Malaysian Bar Circular No 128/2026, 16 Apr 2026, summarising the gazetted orders; checked 30 Sep 2026.)
Note: Older guides still show a "75% remission" tier for homes between RM500,001 and RM1,000,000. That tier belonged to the 2021 to 2023 home ownership campaign and has expired. In 2026 a RM520,000 first home gets no stamp duty relief at all.
1. Standard Tiered MOT Stamp Duty Rates (Before Exemption)
Without the exemption, MOT stamp duty is charged on the higher of the purchase price and the market value, in tiers:
| Portion of Property Value | Rate | Duty on That Band |
|---|---|---|
| First RM100,000 | 1% | RM1,000 |
| RM100,001 to RM500,000 | 2% | up to RM8,000 |
| RM500,001 to RM1,000,000 | 3% | up to RM15,000 |
| Above RM1,000,000 | 4% | 4% of the balance |
Loan agreement stamp duty = loan amount x 0.5%, a flat rate for conventional and Islamic financing alike.
(Source: Stamp Act 1949, First Schedule item 32(a) for the transfer tiers and item 27(a) for loan agreements; checked 30 Sep 2026.)
These tiers apply to Malaysian citizens and permanent residents. Since 1 January 2026, non-citizens and foreign-owned companies pay a flat 8% on the transfer of residential property, and 4% on non-residential property. (Source: Stamp Act 1949, First Schedule items 32(aa) and 32(ab) as amended by the Finance Act 2025; checked 30 Sep 2026.) Our stamp duty guide covers every rate in detail, and the foreign buyers stamp duty guide covers the 8% rule.
SuperHomes Data: How Many Listings Fall Under the RM500,000 Cap?
Whether the exemption helps you depends on where you buy. Across active for-sale listings on SuperHomes:
| Area | Active listings with a price | Median asking price | Listings at or below RM500,000 |
|---|---|---|---|
| Kuala Lumpur | 137 | RM462,000 | 75 (55%) |
| Selangor | 177 | RM375,000 | 119 (67%) |
Of the 194 listings in KL and Selangor priced at RM500,000 or less, 81 (42%) are service residences, which matters for the statutory declaration issue explained in section 3. (Source: SuperHomes listings, active residential sale listings, 30 Sep 2026; asking prices, not transaction prices.)
2. Savings Math Breakdown: RM450,000 First-Time Homebuyer
Non-First-Time Buyer (Full Duty Payable)
- Property price: RM450,000. Housing loan (90%): RM405,000.
- MOT stamp duty: (RM100,000 x 1%) + (RM350,000 x 2%) = RM1,000 + RM7,000 = RM8,000.
- Loan agreement stamp duty: RM405,000 x 0.5% = RM2,025.
- Total stamp duty payable: RM8,000 + RM2,025 = RM10,025.
First-Time Buyer Eligible for the Exemption
- MOT stamp duty payable: RM0.
- Loan agreement stamp duty payable: RM0.
- Cash saved: RM10,025.
Worked Examples at Real 2026 Price Points
| Scenario (90% loan) | MOT Duty (Normal) | Loan Duty (Normal) | Total Normal Duty | First-Time Buyer Pays |
|---|---|---|---|---|
| Selangor median, RM375,000 | RM6,500 | RM1,687.50 | RM8,187.50 | RM0 |
| KL median, RM462,000 | RM8,240 | RM2,079 | RM10,319 | RM0 |
| At the cap, RM500,000 | RM9,000 | RM2,250 | RM11,250 | RM0 |
| Just over the cap, RM520,000 | RM9,600 | RM2,340 | RM11,940 | RM11,940 (no relief) |
The last row is the trap. A home priced RM20,000 above the cap costs RM11,940 more in duty than one at the cap, because the order is all-or-nothing. If you are choosing between two similar units either side of RM500,000, the cheaper one is really about RM32,000 cheaper once duty is counted. The transfer cap is tested on market value, so a unit bought at RM495,000 but valued higher by the Valuation and Property Services Department (JPPH) can lose the exemption too.
In Shah Alam, where the median SuperHomes asking price is RM369,000, most first homes sit comfortably under the cap. In Setapak and Puchong the median is RM324,000.
3. First-Time Buyer Eligibility Criteria & Statutory Declaration
To qualify for the 100% exemption, every condition below must hold:
- Malaysian citizen, as an individual. Companies, permanent residents and foreigners do not qualify.
- Never owned a residential property. This includes a home you got by inheritance or gift, and one held individually or jointly. A share inherited from a parent counts as ownership.
- One unit of residential property with a value of RM500,000 or less.
- SPA signed between 1 January 2021 and 31 December 2027.
- Statutory declaration (akuan berkanun) in LHDN's template, sworn before a Commissioner for Oaths, a magistrate or a Sessions Court judge. There are separate templates for the transfer and for the loan agreement.
(Source: Malaysian Bar Circular No 128/2026, 16 Apr 2026, reproducing P.U.(A) 53/2021, P.U.(A) 54/2021, P.U.(A) 448/2025, P.U.(A) 449/2025 and LHDN's statutory declaration templates; checked 30 Sep 2026.)
The declaration also confirms you have never had an exemption approved under this order, and states that if the information proves false the exemption is withdrawn and duty plus penalties can be charged.
The Service Apartment and SOHO Question
LHDN's declaration template says the property does not include SOHO, SOFO, SOVO or service apartments. However, the definition of "residential property" in the Stamp Act 1949, as amended by section 26 of the Finance Act 2025, covers a house, condominium, apartment, flat, service apartment or small office home office used solely as a dwelling house. The Bar Council's Conveyancing Practice Committee has flagged this conflict, noted that templates are not law, and said it is writing to LHDN to have the template amended. (Source: Malaysian Bar Circular No 128/2026; checked 30 Sep 2026.)
With 42% of sub-RM500,000 listings in KL and Selangor being service residences, this affects many buyers. Until LHDN responds, ask your conveyancing lawyer in writing whether they will claim the exemption for a service residence, and budget for the full duty in case the claim is refused.
Joint Purchases
The exemption is personal. If you buy with a co-purchaser who has never owned a home, but you already own one, only the eligible co-purchaser can claim, and only on their share of the property. (Source: LHDN FAQ on the Stamp Duty (Exemption) Order 2021, as reproduced by conveyancing firms; checked 30 Sep 2026.)
Worked example: a couple buys a RM400,000 home 50:50. Full MOT duty is RM1,000 + RM6,000 = RM7,000. If only one spouse is a first-time buyer, the exemption covers their half, so about RM3,500 of MOT duty remains payable. Ask your lawyer how the loan agreement exemption will be applied before you sign the SPA.
4. How the Exemption Is Claimed in 2026
LHDN has replaced the old STAMPS portal with e-Duti Setem on MyTax, and is moving stamp duty to self-assessment in three phases:
| Phase | Start | Instruments |
|---|---|---|
| Phase 1 | 1 January 2026 | Tenancy and lease, securities, and general stamping |
| Phase 2 | 1 January 2027 | Transfers of real property that do not involve a JPPH valuation |
| Phase 3 | 1 January 2028 | All other instruments |
(Source: LHDN, Sistem Taksir Sendiri Duti Setem page; checked 30 Sep 2026.)
In practice your lawyer uploads the instrument, the statutory declaration and supporting documents, and claims the exemption. Under self-assessment, a wrong claim is your risk: LHDN can audit later and charge the duty plus penalties. Keep your SPA, declaration and stamping certificates for at least seven years. Late stamping penalties are RM50 or 10% of the unpaid duty (whichever is greater) within three months, and RM100 or 20% after that. (Source: Stamp Act 1949 s.47A as amended from 1 January 2025; checked 30 Sep 2026.)
5. Common Mistakes First-Time Buyers Make
- Budgeting on the expired 75% tier. Homes above RM500,000 get no relief in 2026.
- Forgetting an inherited share. Being named on a geran through a parent's estate, even for a small share, disqualifies you.
- Assuming a service residence qualifies. See section 3; get written advice first.
- Ignoring market value. A JPPH valuation above RM500,000 can remove the transfer exemption even if your price is under the cap.
- Signing a false declaration. The exemption is withdrawn and duty plus penalties apply, and a false statutory declaration is itself an offence.
- Missing the deadline. The SPA must be signed by 31 December 2027. A later SPA would need a new extension, which has not been announced.
Frequently Asked Questions (FAQ)
Q: Is there a MOT stamp duty exemption in 2026?
Yes. Malaysian citizens buying their first residential property at RM500,000 or less pay no MOT stamp duty and no loan agreement stamp duty, provided the SPA is signed between 1 January 2021 and 31 December 2027. Everyone else pays the normal 1% to 4% tiers on the MOT and 0.5% on the loan.
Q: Is there any stamp duty relief for a first home above RM500,000?
No. The 75% remission for homes between RM500,001 and RM1,000,000 ended with the 2021 to 2023 campaign. In 2026 a first home priced RM500,001 or more pays full duty, so a RM600,000 home pays RM12,000 of MOT duty.
Q: Does the first-time buyer exemption apply to subsale properties?
Yes. The orders cover the purchase of residential property whether from a developer or from an individual seller, as long as the SPA date, value cap and first-home conditions are met.
Q: I inherited a share of my parents' house. Am I still a first-time buyer?
No. The orders exclude anyone who has owned a residential property, including one obtained by inheritance or gift, whether held alone or jointly. Even a small registered share counts.
Q: Can a husband and wife both claim the exemption?
Yes, if both are Malaysian citizens and neither has ever owned a residential home. If only one of you qualifies, that spouse can claim on their share only, and the other share pays normal duty.
Q: Does the exemption cover service apartments and SOHOs?
It is disputed. LHDN's declaration template excludes SOHO, SOFO, SOVO and service apartments, but the Stamp Act definition amended by the Finance Act 2025 includes service apartments and SOHOs used solely as a home. The Bar Council has raised the conflict with LHDN. Get your lawyer's written view before relying on it.
Q: How is the exemption submitted to LHDN?
Your conveyancing lawyer files the instrument and your sworn statutory declaration through LHDN's e-Duti Setem service on MyTax, which replaced the old STAMPS portal. Transfers of real property move to self-assessment from 1 January 2027, so keep your documents in case of an audit.
Q: How much can a first-time buyer save in total?
Up to RM9,000 on the MOT for a RM500,000 home, plus 0.5% of the loan: RM2,250 with a 90% loan, or RM2,500 with 100% financing. That is RM11,250 to RM11,500 in cash you do not need at completion.
Related Resources
- Subsale Costs: Read our Subsale House Legal Fees & Stamp Duty Schedule.
- First Buyer Schemes: Explore First-Time Home Buyer Schemes & Government Incentives.
- RPGT Rules: Learn about Real Property Gains Tax (RPGT) Exemptions for Sellers.
