Stamp Duty on Property in Malaysia — Complete Guide 2026

On a RM600,000 property with a 90% loan, stamp duty alone costs you RM14,700 before you've paid a single ringgit of legal fees or down payment. On a RM900,000 property, that figure climbs to RM25,050. Stamp duty is the single biggest upfront cost most Malaysian buyers underestimate — or discover too late when the solicitor sends the payment schedule.

This guide gives you the exact numbers. How stamp duty is calculated, what rates apply to which part of your transaction, where exemptions exist, and how much cash you need to have ready on signing day.

Last updated 11 October 2026 · money.com.my Editorial

What is stamp duty and why do you pay it?#

Stamp duty is a government tax on legal documents — specifically on instruments that record the transfer of property ownership and the creation of loan agreements. In Malaysia, stamp duty is governed by the Stamp Act 1949 (as amended), administered by the Inland Revenue Board (Lembaga Hasil Dalam Negeri — LHDN).

For a residential property purchase, you encounter stamp duty in three places:

1. Sale and Purchase Agreement (SPA) — the contract between buyer and seller. It carries a fixed RM10 duty
2. Memorandum of Transfer (MOT) — the document that registers the title transfer in your name at the land office. This is where the tiered, ad valorem duty is charged
3. Loan Agreement — the facility agreement between you and your bank, at 0.5% of the loan

The SPA is an agreement under hand, stamped at a fixed RM10 under item 4 of the First Schedule; LHDN's stamp duty guideline (Garis Panduan Pengenaan Duti Setem, 30 June 2026) lists sale and purchase agreements for land and buildings among the RM10 instruments. The ad valorem duty is charged on the instrument of transfer under item 32(a). The loan agreement stamp duty is a separate line item.

The buyer pays all three. The seller pays stamp duty on nothing — their tax exposure is Real Property Gains Tax (RPGT), which is a separate calculation based on profit from the sale.

How is stamp duty on the transfer (MOT) calculated?#

Stamp duty on the Memorandum of Transfer is calculated on the purchase price of the property (or its market value, if higher) using a tiered progressive scale:

These rates are set under item 32(a) of the First Schedule of the Stamp Act 1949. They apply to each band independently — not on the full price at the highest applicable rate.

Foreign buyers pay 8%. The tiers above are for Malaysian citizens and permanent residents. From 1 January 2026, a buyer who is not a citizen and not a permanent resident, or a foreign company, pays a flat 8% of the price on residential property instead (item 32(ab), added by the Finance Act 2025).

How to read this table: If your property costs RM600,000, you do not pay 3% on the entire RM600,000. You pay 1% on the first RM100,000, 2% on the next RM400,000, and 3% only on the final RM100,000 that sits above the RM500,000 threshold.

How much stamp duty is charged on the loan agreement?#

Stamp duty on the loan agreement is simpler — it is a flat 0.5% of the loan amount, applied to the full facility.

There is no tiering on loan agreement stamp duty — 0.5% applies to the full loan amount from the first ringgit. This rate applies regardless of whether you take a conventional loan or Islamic financing.

For context on how your loan amount is determined by your bank — including Debt Service Ratio (DSR) calculations and margin of financing — see our home loan guide.

Worked Examples — Three Property Price Points#

Here is the full stamp duty calculation for three common price points, each at 90% loan-to-value (10% down payment), for a citizen or permanent resident buyer. The SPA's fixed RM10 is not included in these totals.

RM400,000 Property (RM360,000 Loan)#

RM600,000 Property (RM540,000 Loan)#

RM900,000 Property (RM810,000 Loan)#

Which stamp duty exemptions can you get?#

First-Time Buyer Exemption#

The most significant exemption available to Malaysian property buyers is the first-home stamp duty exemption. It comes from two gazetted orders, not from a Budget announcement:

• P.U.(A) 53/2021, the Stamp Duty (Exemption) Order 2021 — full exemption on the instrument of transfer (MOT)
• P.U.(A) 54/2021, the Stamp Duty (Exemption) (No. 2) Order 2021 — full exemption on the loan agreement

Both orders apply where:

• The buyer is a Malaysian citizen
• It is their first residential property — they have never owned one, including by inheritance or gift, solely or jointly
• The property's market value is RM500,000 or less
• The buyer makes a statutory declaration

Dates. The transfer exemption covers SPAs executed from 1 January 2021 to 31 December 2027 (extended from 31 December 2025 by P.U.(A) 448/2025). The loan-agreement exemption was set to end on 31 December 2025; we have not been able to confirm the order extending it, so if your SPA is signed in 2026 or later, ask your solicitor whether the loan agreement is exempt before you rely on it.

Neither order covers the SPA itself, which carries only the fixed RM10.

What it saves. A first-time buyer purchasing a RM450,000 property with a 90% loan (RM405,000):

• Transfer: RM100,000 × 1% = RM1,000, plus RM350,000 × 2% = RM7,000, so RM8,000
• Loan agreement: RM405,000 ÷ RM1,000 × RM5 = RM2,025
• Total exempted: RM10,025 (RM8,000 if only the transfer exemption applies)

Critical caveat: The exemption has fixed end dates and can be changed by a new order. Before you rely on it, confirm with your solicitor or with LHDN at hasil.gov.my that it covers your SPA date. Do not assume last year's exemption applies today.

For properties priced above RM500,000, the standard tiered rates apply in full — there is no partial first-time buyer relief on the excess amount.

If you are a first-time buyer still figuring out eligibility and what other government schemes apply to you, the first-time home buyer guide covers PR1MA, the now-closed Skim Rumah Pertamaku, EPF Account 2 withdrawals, and the full purchase process.

Home Ownership Campaign (HOC) — When Active#

The Home Ownership Campaign (HOC) is a periodic government initiative that provides stamp duty exemptions on qualifying new residential properties. When active, HOC typically offers:

• Full stamp duty exemption on the SPA for new properties by registered developers
• Partial or full exemption on loan agreement stamp duty
• Property must be from participating developers listed under the REHDA/SHEDA HOC programme

HOC is not a permanent fixture — it has been activated for specific windows (2019, 2020–2021, periods in 2023). As of the date of this guide, check with your developer or REHDA (rehda.com) whether an active HOC is in force for your property.

Affordable Housing Schemes#

Properties under government-linked affordable housing programmes — PR1MA (RM100,000–RM400,000 units), RUMAWIP, Residensi Prihatin, and equivalent state schemes — sometimes carry instrument-specific stamp duty relief built into the programme terms. Confirm with the scheme administrator at point of application.

Transfer Between Family Members (Instruments of Love)#

Transfers of residential property between spouses or parents and children that qualify as "instruments of love" under the Stamp Act attract reduced stamp duty at 50% of the standard rate — and sometimes full exemption depending on the qualifying conditions. These apply to gifts and inheritance transfers, not commercial transactions.

The Full Cost Picture — Stamp Duty in Context#

Stamp duty is one of several upfront costs at signing. Here is the complete cash requirement for a RM600,000 property with a 90% loan, using standard rates (no exemptions):

This RM600,000 property is above the RM500,000 limit, so it gets no first-home exemption. If you qualify and the market value is RM500,000 or less, the exemption removes the transfer duty and, where the loan exemption still applies to your SPA date, the loan duty: with a 90% loan that is about RM8,800 at RM400,000 (RM7,000 + RM1,800) up to RM11,250 at RM500,000 (RM1,000 + RM8,000 on the transfer, plus RM2,250 on a RM450,000 loan).

Legal fees follow the Solicitors' Remuneration Order (SRO): for the SPA, the scale is 1% on the first RM500,000 of property price, reducing for higher amounts. These are set by regulation, not freely negotiable — though solicitors can offer a rebate of up to 25%.

For the mechanics of how your bank calculates the loan amount — including how DSR affects how much you can borrow — see the home loan guide Malaysia 2026. If you've previously owned property and are thinking about refinancing, note that the new loan on a refinance also attracts loan agreement stamp duty at 0.5% — factored into our refinancing cost breakdown.

When is stamp duty paid?#

Understanding when payment is due prevents last-minute scrambles for cash.

SPA stamp duty: a fixed RM10, due within 30 days of the SPA being signed (for documents signed in Malaysia). Your solicitor will stamp the document promptly after the signing appointment. An unstamped SPA cannot be used as evidence in court — making timely stamping essential, not optional.

Loan agreement stamp duty: Due at or shortly after loan agreement signing. Your bank's panel solicitor handles the stamping. You will be asked to remit this amount to the solicitor's account before the signing date.

MOT stamp duty: This is the large, tiered duty. The Memorandum of Transfer is the document lodged at the land office (Pejabat Tanah) to register the title change. For sub-sale (secondary market) properties, the MOT is signed and stamped after the full purchase price is settled — usually at the end of the 3-month completion period. For new developer properties, the MOT is executed and stamped after the developer obtains the individual strata or land title, which can take years after Vacant Possession.

Practical sequence for a sub-sale property:

1. SPA signed → SPA stamped at the fixed RM10 within 30 days (usually immediately)
2. Loan agreement signed → loan agreement stamp duty paid immediately
3. Full purchase price settled → MOT signed and stamped (the tiered transfer duty) → lodged at land office
4. Title transferred to buyer's name → transaction complete

For the full sequence of what happens between signing and key collection, see the step-by-step property buying guide.

How do you calculate your stamp duty?#

If you want to calculate your exact stamp duty before speaking to a solicitor, here is the method:

Step 1: Identify your purchase price. Use the SPA price — this is what stamp duty is based on, not the bank's valuation (though LHDN may adjust if the declared price is below market value — an issue mainly for undervalued sub-sales).

Step 2: Apply the tiered MOT stamp duty.

• First RM100,000 × 1% = up to RM1,000
• RM100,001 to RM500,000: subtract RM100,000 from your price (capped at RM400,000 on this band) × 2%
• RM500,001 to RM1,000,000: subtract RM500,000 from your price (capped at RM500,000 on this band) × 3%
• Above RM1,000,000: amount above RM1 million × 4%
• Add all bands together

Step 3: Calculate loan agreement stamp duty. Loan amount × 0.5%

Step 4: Add Steps 2 and 3. This is your total stamp duty liability before exemptions.

Step 5: Apply any exemptions. If you are a confirmed first-time buyer and the exemption orders cover your SPA signing date (P.U.(A) 53/2021 for the transfer, P.U.(A) 54/2021 for the loan agreement), reduce accordingly. Your solicitor confirms which exemptions apply based on the date your SPA is executed.

LHDN operates a stamp duty calculator through MyStamp at hasil.gov.my — this is the official tool and uses current rates as registered in the system.

Stamp Duty vs RPGT — Two Different Things#

Buyers sometimes confuse stamp duty with Real Property Gains Tax (RPGT). They are entirely different:

If you are a seller, your relevant guide is RPGT — not stamp duty. If you are a buyer, you pay stamp duty and bear no RPGT liability on this purchase (RPGT applies when you eventually sell).

Stamp Duty and Refinancing#

If you refinance your home loan later, the new loan agreement attracts its own stamp duty at 0.5% of the new loan amount. This is one of the costs that can make refinancing uneconomical if the rate saving is small.

Example: You refinance from a RM480,000 outstanding balance into a new RM480,000 loan. Stamp duty on the new loan: RM2,400. If your monthly saving from the rate reduction is RM200/month, you need 12 months just to break even on stamp duty alone — before legal fees and valuation costs.

The refinancing guide covers this break-even calculation in full and walks through when the numbers actually work in your favour: refinancing home loan Malaysia.

Is Stamp Duty Tax-Deductible in Malaysia?#

Stamp duty on property purchase is not deductible against personal income tax for individual buyers purchasing residential property for personal use.

If you are purchasing a commercial property for business use, or purchasing property as a registered business (Sdn Bhd), different rules apply and stamp duty may be deductible as a business expense — but this is outside the scope of individual residential purchases.

For the full picture of what IS deductible for individual Malaysian taxpayers — home loan interest relief, lifestyle reliefs, EPF contributions — see the income tax reliefs Malaysia 2026 guide.

Signing Appointment Checklist — What to Bring#

When your solicitor calls to confirm the SPA or loan agreement signing date, have this list ready:

Identity Documents

• Original IC (MyKad) — both buyer and co-buyer if applicable
• Passport if you are a non-citizen (PR or foreign buyer)
• Marriage certificate if buying jointly as spouses

Financial Documents

• Latest 3 months' payslips (in case solicitor needs to verify employment for any process)
• Copy of bank's Letter of Offer (keep a copy, not the original)
• Bank account details for your solicitor's records (for refunds or surplus disbursement)

Property Documents

• Copy of the developer's brochure or listing details (for new launches)
• Copy of title or lot number if available (for sub-sale)
• Agent's contact details in case queries arise during signing

Payments to Have Ready

• Balance of down payment (total 10% minus booking deposit already paid)
• Stamp duty on the SPA (a fixed RM10; the larger transfer (MOT) duty is paid when the MOT is stamped — your solicitor will confirm the amounts and timing)
• Stamp duty on loan agreement (if signing both on the same day)
• SPA legal fees (confirm the amount with your solicitor in advance)
• Valuation fee receipt if already paid separately

Before You Leave the Appointment

• Keep a certified true copy of the signed, stamped SPA — do not leave without one
• Note the solicitor's file reference number
• Confirm the expected timeline for the next step (loan agreement signing, or for new launches, the progressive payment schedule)
• Ask your solicitor to confirm in writing whether your first-time buyer exemption has been applied and on what basis

Stamp duty rates are governed by the Stamp Act 1949 (as amended). The first-time buyer exemption is set by gazetted orders (P.U.(A) 53/2021 and 54/2021, as amended) with fixed end dates. The figures in this guide reflect standard rates as of early 2026. Verify current rates and applicable exemptions with your solicitor or at hasil.gov.my before signing any documents.

Amendment, 11 October 2026. We corrected this guide against the Stamp Act 1949 (Act 378, AGC updated text as at 1 January 2026), the exemption orders and LHDN's stamp duty guideline:

• RM900,000 example in the introduction: it said RM26,700; the correct total is RM25,050, as the worked example already showed. Transfer duty: RM100,000 × 1% = RM1,000, plus RM400,000 × 2% = RM8,000, plus RM400,000 × 3% = RM12,000, so RM21,000. Loan duty on RM810,000: 810 × RM5 = RM4,050. Total RM25,050.
• SPA versus transfer: the tables labelled the tiered duty "SPA/MOT stamp duty" and the FAQ called it "SPA stamp duty". The ad valorem duty is charged on the instrument of transfer (item 32(a)), so the rows are now "MOT (transfer) stamp duty". The SPA itself carries a fixed RM10 (item 4; LHDN, Garis Panduan Pengenaan Duti Setem, 30 June 2026, Part G, which lists sale and purchase agreements for land and buildings among the RM10 instruments).
• First-home exemption: the guide attributed it to "Budget 2024" and said it is "announced in the annual Federal Budget". It comes from P.U.(A) 53/2021 (instrument of transfer) and P.U.(A) 54/2021 (loan agreement), for a Malaysian citizen buying a first residential property with a market value of RM500,000 or less, with a statutory declaration. The transfer exemption runs to SPAs executed by 31 December 2027 (P.U.(A) 448/2025). The loan exemption was set to end on 31 December 2025, and we have not confirmed the order extending it, so the guide now says so.
• Savings figures: a RM450,000 first home with a 90% loan saves RM10,025, not "approximately RM9,500": transfer RM100,000 × 1% = RM1,000 plus RM350,000 × 2% = RM7,000 (RM8,000), and loan RM405,000 ÷ RM1,000 × RM5 = RM2,025. The range of savings was given as "RM8,800–RM14,700"; RM14,700 is the RM600,000 case, which is above the limit and gets no exemption. The range is about RM8,800 at RM400,000 (RM7,000 + RM1,800) up to RM11,250 at RM500,000 (RM1,000 + RM8,000 = RM9,000 on the transfer, plus RM2,250 on a RM450,000 loan).
• Foreign buyers: added that from 1 January 2026 a buyer who is not a citizen and not a permanent resident, or a foreign company, pays a flat 8% on residential property (item 32(ab)); the 1% to 4% tiers are for citizens and PRs.

Sources: Stamp Act 1949 (Act 378), AGC updated text as at 1 January 2026, First Schedule items 4, 27(a)(iii), 32(a) and 32(ab); P.U.(A) 53/2021; P.U.(A) 54/2021; P.U.(A) 448/2025; LHDN, Garis Panduan Pengenaan Duti Setem, 30 June 2026; all checked 10 October 2026.

Amendment, 11 October 2026. Structural change only: a short answer was added at the top, section headings were rewritten as the questions they answer, and one question was added to the FAQ from this guide's own text. No figure, rule or source was changed. Every figure in the short answer already appears in the body of this guide. The short answer uses the transfer exemption only; it does not rely on the loan-agreement exemption, whose extension beyond 31 December 2025 we have not confirmed.

Related Guides#

• How to Buy Your First Home in Malaysia — Step-by-Step — the full buying process from credit check to key collection, including where stamp duty fits in
• First-Time Home Buyer Malaysia — Complete Step-by-Step Guide 2026 — government schemes, eligibility, and exemptions for first-time buyers
• RPGT Malaysia — Real Property Gains Tax Explained — the other property tax you need to know about when you eventually sell
• EPF Housing Withdrawal (Account 2) Malaysia — using EPF savings to cover your down payment or reduce the loan principal
• Refinancing Your Home Loan in Malaysia — when it makes sense to switch banks after your lock-in period, and what stamp duty applies on the new loan agreement
• OPR Malaysia Explained — What It Means for Your Mortgage and Savings — how interest rate changes affect your monthly repayment on a floating-rate mortgage