Stamp Duty Malaysia 2026: Rates, Exemptions & Calculator

Key Takeaways:
‍A standard buyer of a RM500,000 home with a 90% loan pays RM11,250 in total stamp duty: RM9,000 on the Memorandum of Transfer (MOT) and RM2,250 on the loan agreement. A first-time Malaysian homebuyer who has never owned a residential property pays RM0 on the same home, provided the sale and purchase agreement is signed by 31 December 2027, while non-citizen buyers now pay a flat 8% on residential transfers.

Two buyers can sign for the same RM500,000 home this month and walk away with completely different bills. One pays RM11,250 in stamp duty before they get  the keys. The other, a first-time buyer, pays nothing at all.

Stamp duty applies to two key documents in most purchases: your Memorandum of Transfer (MOT) and your loan agreement. As of 2026, non-citizen buyers pay a flat 8% on residential transfers, the first-time homebuyer exemption runs to the end of 2027, and LHDN has started moving stamp duty onto a self-assessment system, though property transfers themselves aren't part of that system yet.

This guide covers the current rates, a calculator you can run in four steps, every major exemption, and what to expects as the rules keep shifting into 2027.

Which Documents Attract Stamp Duty When You Buy a Home?

Buying a property in Malaysia involves three stampable documents, but two carry the real cost:

Sources: Stamp Act 1949, LHDN (September 2026)

The MOT (or a DOA, if the property sits under a master title) accounts for roughly 80% of the total on a typical purchase, and it's where every major exemption is aimed. The loan agreement is a flat 0.5% of your financing amount, no tiers involved.

How Is Stamp Duty Calculated in Malaysia?

MOT stamp duty works like income tax brackets: each slice of your property’s value is taxed at its own rate, then the slices are added together.

Sources: LHDN, Stamp Act 1949 as amended by Finance Act 2025

The flat 8% only applies to residential property; commercial transfers stay at 4% regardless of who's buying. A Malaysian citizen buying a RM1.2 million home pays RM32,000 (a 2.7% effective rate) in MOT stamp duty. A non-citizen buying the same home pays RM96,000.

Worked Examples: Standard Buyer, 90% Loan

Stamp Duty Calculator: Get an Instant  Estimate

Enter your residential property price below for an instant estimate. The calculator covers first-time buyers, foreign buyers and family transfers, using the latest LHDN rates.

Source: GetSolar calculations based on LHDN stamp duty rates (September 2026)

Stamp duty jumps 61% between RM500,000 and RM700,000, from RM11,250 to RM18,150 on a 90% loan. The RM500,000 line matters most for first-time buyers: a RM510,000 home costs RM11,595 in stamp duty, while a RM500,000 home, bought by an eligible first-time buyer, costs nothing.

What Changed for Stamp Duty in Malaysia in 2026?

Malaysia introduced three major changes in 2026, with the next milestone due in2027.

1. Non-citizen buyers now pay a flat 8% on residential transfers

Non-citizens and foreign companies pay a flat 8% tax on residential property transfers, up from the previous 4%. Permanent residents keep the standard progressive rates. Commercial property is unaffected.

2. The first-time buyer exemption runs to 31 December 2027

The 100% exemption on MOT and loan agreement duty for homes under RM500,000 was extended by two years under Budget 2026. It applies where the sale and purchase agreement is signed on or before that date, the buyer is a Malaysian citizen, and the buyer has never owned a residential property before, including one received by inheritance or gift.

3. LHDN began moving stamp duty to self-assessment, in phases

LHDN is replacing its STAMPS portal with e-Duti Setem on MyTax under the Stamp Duty Self-Assessment System (STSDS). Instead of LHDN assessing your documents, you or your lawyer calculate, declare and pay the duty yourself. The rollout runs in three phases:

Source: LHDN (STSDS), September 2026

Property transfers stay under LHDN's traditional assessment model for now.. If your transaction needs a valuation from the Valuation and Property Services Department (JPPH), for example because of a below-market declared price or a related-party sale, it likely won't move to self-assessment until Phase 3. Separately, LHDN's Special Voluntary Disclosure Programme, announced 5 January 2026, waives penalties on late stamping for instruments regulated under the program; check the HASiL guidelines for its current winder before relying on it.

Who Is Exempt From Stamp Duty in Malaysia?

Four groups pay reduced or zero stamp duty on the MOT:

Sources: Budget 2026; the parent-child and grandparent-grandchild relief is under the [Stamp Duty (Exemption) (No. 3) Order 2023 P.U.(A) 178; the recipient must be a Malaysian citizen

If you're buying jointly, ask your lawyer to confirm every name on the SPA meets the first-time buyer criteria before you sign; all co-buyers generally need to qualify for the full exemption to apply. Siblings don't qualify for love and affection relief either, so a transfer between brothers pays the full rate on market value.

Quick answer: first-time buyers under RM500,000, spouses, parents and children, and grandparents and grandchildren all get full or partial stamp duty exemptions, each with its own conditions on citizenship and prior ownership.

What Are LHDN's Guidelines on Stamp Duty?

Conveyancing lawyers handle the filing, but buyers still carry legal liability for inaccuracies. Core rules include:

• 30-day deadline: stamp each document within 30 days of signing it
• Higher of price or market value: LHDN charges MOT duty on whichever figure is higher, using valuations from the Valuation and Property Services Department (JPPH)
• Late penalties: stamping up to three months late costs RM50 or 10% of the duty, whichever is higher; beyond three months, it rises to RM100 or 20%
• Online only: all stamping now runs through e-Duti Setem on the MyTax portal

An unstamped document also can't serve as evidence in court until you pay the duty and penalty, so a missed deadline can stall a dispute with your developer.

First-Time Buyer vs Standard Buyer: How Much Cash Do You Need Upfront?

Stamp duty sits alongside legal fees and your down payment. Here's the full upfront bill for a RM500,000 terrace house with a 90% loan:

Sources: LHDN, Solicitors' Remuneration (Amendment) Order 2023. Legal fees exclude 8% SST and disbursements.

The exemption saves a first-time buyer RM11,250, or around 15% of the upfront bill. Budget another RM2,500–RM4,000 for disbursements, valuation and loan processing fees.

Once you move in, the spending shifts to setting the house up: a smart home setup, or renovation work like replacing old water piping.

Where Does Solar Fit Into Your New Home Budget?

Solar won't reduce your stamp duty, but it targets the bill that arrives every month after you get your keys. Many landed homeowners who switch to solar cut their TNB bill significantly, though the actual saving depends on your roof, usage and system size.

Under Solar ATAP, the solar power you use during the day offsets grid electricity directly. If your budget is stretched after stamp duty and legal fees, so a Rent-to-Own plan lets you install with RM0 upfront. If you'd rather buy outright, the SuRIA Home rebate pays up to RM3,000 back (RM600 per kWac, up to 5kWac), for systems commissioned with TNB by 31 December 2026 or until the 250MW quota, expected to cover 45,000-50,000 homes, us used up.

For a deeper look at ongoing property costs, see our guide to quit rent vs assessment tax in Malaysia.

Frequently Asked Questions

How is stamp duty calculated in Malaysia?

MOT stamp duty uses tiers: 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million and 4% above that. Add 0.5% of your loan amount for the loan agreement. A RM500,000 home with a RM450,000 loan pays RM11,250 in total.

Can stamp duty be added to my home loan?

No. Banks generally require stamp duty and legal fees to be paid in cash upfront; they aren't rolled into the financing amount, though some banks offer separate personal financing to cover these costs.

Does the first-time buyer exemption apply to sub-sale properties, or only new developer purchases?

It applies to both, provided the SPA is signed by 31 December 2027 and you meet the citizenship and prior-ownership conditions. There's no requirement that the property be newly built.

What happens if my property is jointly owned with someone who has bought before?

The exemption generally requires every named buyer to be a first-time owner. If one co-buyer has owned property before, the exemption may not apply at all, so confirm this with your lawyer before signing.

Who pays stamp duty, the buyer or the seller?

The buyer pays stamp duty on the SPA, MOT and loan agreement. The seller's main tax is Real Property Gains Tax (RPGT) on any profit from a sale within 5 years of purchase.

How much is stamp duty for a RM500,000 house in Malaysia?

A standard buyer pays RM9,000 on the MOT and RM2,250 on a 90% loan, totaling RM11,250. A first-time buyer pays RM0.

Stamp Duty Is a One-Off. Your TNB Bill Isn't.

Stamp duty on a RM500,000 home will cost around RM11,250 for a standard buyer. First-time buyers can skip that charge entirely until 31 December 2027, so time your SPA carefully if your budget sits close to the RM500,000 mark, and confirm your eligibility with a lawyer before you sign.

Once the keys are handed over, your monthly electricity bills becomes the main recurring cost within your control. Check out our solar calculator or chat with the team on WhatsApp whenever you're ready.