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 RM26,700. 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.

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
2. Memorandum of Transfer (MOT) — the document that registers the title transfer in your name at the land office
3. Loan Agreement — the facility agreement between you and your bank

In practice, most solicitors consolidate the SPA and MOT stamp duty charges and present them together. 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.

MOT Stamp Duty — The Tiered Rate Table#

Stamp duty on the Memorandum of Transfer (and the SPA that precedes it) is calculated on the purchase price of the property using a tiered progressive scale:

| Purchase Price Band | Rate | Maximum Duty on This Band | |---|---|---| | First RM100,000 | 1% | RM1,000 | | RM100,001 to RM500,000 | 2% | RM8,000 | | RM500,001 to RM1,000,000 | 3% | RM15,000 | | Above RM1,000,000 | 4% | — |

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

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.

Loan Agreement Stamp Duty#

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

| Loan Amount | Stamp Duty | |---|---| | RM360,000 | RM1,800 | | RM450,000 | RM2,250 | | RM540,000 | RM2,700 | | RM720,000 | RM3,600 | | RM810,000 | RM4,050 |

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):

RM400,000 Property (RM360,000 Loan)#

| Component | Calculation | Amount | |---|---|---| | SPA/MOT stamp duty — first RM100k | 1% × RM100,000 | RM1,000 | | SPA/MOT stamp duty — next RM300k | 2% × RM300,000 | RM6,000 | | Total SPA/MOT stamp duty | | RM7,000 | | Loan agreement stamp duty | 0.5% × RM360,000 | RM1,800 | | Total stamp duty | | RM8,800 |

RM600,000 Property (RM540,000 Loan)#

| Component | Calculation | Amount | |---|---|---| | SPA/MOT stamp duty — first RM100k | 1% × RM100,000 | RM1,000 | | SPA/MOT stamp duty — next RM400k | 2% × RM400,000 | RM8,000 | | SPA/MOT stamp duty — remaining RM100k | 3% × RM100,000 | RM3,000 | | Total SPA/MOT stamp duty | | RM12,000 | | Loan agreement stamp duty | 0.5% × RM540,000 | RM2,700 | | Total stamp duty | | RM14,700 |

RM900,000 Property (RM810,000 Loan)#

| Component | Calculation | Amount | |---|---|---| | SPA/MOT stamp duty — first RM100k | 1% × RM100,000 | RM1,000 | | SPA/MOT stamp duty — next RM400k | 2% × RM400,000 | RM8,000 | | SPA/MOT stamp duty — remaining RM400k | 3% × RM400,000 | RM12,000 | | Total SPA/MOT stamp duty | | RM21,000 | | Loan agreement stamp duty | 0.5% × RM810,000 | RM4,050 | | Total stamp duty | | RM25,050 |

Stamp Duty Exemptions — Who Gets Reduced Rates#

First-Time Buyer Exemption#

The most significant exemption available to Malaysian property buyers is the first-time buyer stamp duty relief, announced under the annual Federal Budget.

Under Budget 2024, first-time buyers purchasing residential properties priced at RM500,000 and below received:

• Full exemption on SPA/MOT stamp duty
• Full exemption on loan agreement stamp duty

This means a first-time buyer purchasing a RM450,000 property would pay RM0 in stamp duty — a saving of approximately RM9,500 compared to a buyer who does not qualify.

Critical caveat: These exemptions are time-limited and subject to annual review in the Budget. They may or may not be extended or modified for the current tax year. Before you rely on this exemption, confirm the current operative status with your solicitor or check directly with LHDN at lhdn.gov.my. 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, 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.my) 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):

| Cost Item | Amount | |---|---| | Down payment (10%) | RM60,000 | | SPA/MOT stamp duty | RM12,000 | | Loan agreement stamp duty | RM2,700 | | SPA legal fees (approx.) | RM5,500–RM7,000 | | Loan agreement legal fees (approx.) | RM3,500–RM5,000 | | Property valuation fee | RM1,500–RM2,000 | | MRTA/MLTA insurance | RM8,000–RM20,000 | | Total cash required (estimated) | RM93,200–RM108,700 |

If you qualify for first-time buyer stamp duty exemption and the property is priced under RM500,000, remove both stamp duty lines — saving approximately RM8,800–RM14,700 depending on price.

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 Stamp Duty Is Paid — The Timeline#

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

SPA stamp duty: Due within 30 days of the SPA being signed (for documents signed in Malaysia). Your solicitor will typically request the stamp duty amount before or at the SPA signing appointment so they can stamp the document promptly. 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: 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 stamp duty paid within 30 days (usually immediately)
2. Loan agreement signed → loan agreement stamp duty paid immediately
3. Full purchase price settled → MOT signed and stamped → 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 to Calculate Your Stamp Duty — Step by Step#

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 operative Budget exemption is in force for your SPA signing date, 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:

| | Stamp Duty | RPGT | |---|---|---| | What it taxes | The transaction document | The profit from the sale | | Who pays | The buyer | The seller | | When | At document signing | When the property is sold | | Rate | Tiered 1%–4% on price; 0.5% on loan | 0%–30% depending on holding period | | Purpose | Government revenue on legal instruments | Capital gains tax on property appreciation |

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 SPA (your solicitor will confirm the exact amount before the appointment)
• [ ] 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). Exemption eligibility for first-time buyers is announced in the annual Federal Budget and subject to revision. 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.