Buying a property involves more than paying the purchase price. If you are buying a property this year, understanding stamp duty in Malaysia 2026 is important when budgeting for your purchase.
Apart from legal fees and other transaction costs, purchasers should also take into account the property stamp duty in Malaysia payable on the transfer of the property and, where financing is obtained, the stamp duty payable on the loan documentation.
For 2026, the basic stamp duty framework for Malaysian citizens and permanent residents remains largely unchanged. However, there are several important developments which property buyers should be aware of.
- Standard Property Stamp Duty Rates Remain Progressive
For Malaysian citizens and permanent residents, stamp duty on the instrument of transfer, commonly the Memorandum of Transfer (“MOT”), continues to be calculated progressively as follows: –
Value of Property | Stamp Duty Rate |
First RM100,000 | 1% |
Next RM400,000 | 2% |
Next RM500,000 | 3% |
Amount exceeding RM1,000,000 | 4% |
Stamp duty is generally assessed based on the purchase consideration or market value of the property, whichever is higher.
For example, where the relevant value of a property is RM800,000, the estimated transfer stamp duty would be: –
- RM1,000 on the first RM100,000;
- RM8,000 on the next RM400,000; and
- RM9,000 on the remaining RM300,000.
The total estimated stamp duty would therefore be RM18,000.
Buyers may use our Property Transfer / MOT Stamp Duty Calculator to obtain an initial estimate of the applicable stamp duty and legal fees.
- First Home Stamp Duty Exemption Extended to 2027
One of the more relevant developments for Malaysian first-time homebuyers is the extension of the first home stamp duty exemption in Malaysia.
A qualifying Malaysian citizen purchasing his or her first residential property priced at up to RM500,000 may enjoy a 100% stamp duty exemption on: –
- the instrument of transfer; and
- the loan agreement.
For this purpose, residential property includes a house, condominium unit, apartment or flat purchased or obtained solely for use as a dwelling house.
To qualify as a first-time homebuyer, the purchaser must not have previously owned any residential property, whether individually or jointly, including any residential property acquired by way of inheritance or gift.
The exemption applies, subject to the prescribed conditions, to qualifying sale and purchase agreements executed from 1 January 2026 to 31 December 2027.
This means that eligible first-time buyers may continue to enjoy substantial savings on the upfront costs of purchasing a residential property. However, the first home stamp duty exemption in Malaysia is not automatic, and purchasers should confirm that the relevant eligibility requirements are satisfied.
- Foreign Purchasers Now Face an 8% Stamp Duty Rate
A more significant change took effect from 1 January 2026 in relation to certain foreign purchasers.
Under the Finance Act 2025, the stamp duty rate on the transfer of residential property to: –
- a foreign company; or
- an individual who is neither a Malaysian citizen nor a permanent resident,
is RM8 for every RM100 or part thereof, effectively 8%.
The 8% rate is calculated on the consideration or market value of the residential property, whichever is higher.
For example, where a foreign purchaser acquires a residential property valued at RM1,000,000: –
RM1,000,000 × 8% = RM80,000
The stamp duty payable on the transfer would therefore be RM80,000, subject to the applicable statutory provisions and circumstances of the transaction.
This represents an important change to foreign buyer stamp duty in Malaysia and should be taken into account by foreign purchasers when budgeting for the acquisition of residential property.
- Stamp Duty on Housing Loan Documentation
Where a purchaser obtains financing to purchase the property, stamp duty is also generally payable on the principal loan or financing documentation.
For an ordinary housing loan, stamp duty is generally calculated at 0.5% of the loan amount.
For example, if a purchaser obtains a housing loan of RM700,000: –
RM700,000 × 0.5% = RM3,500
This cost is separate from the stamp duty payable on the transfer of the property.
Our Loan Stamp Duty Calculator can also be used to obtain an initial estimate of the stamp duty payable on housing loan documentation.
- Common Misconceptions About Property Stamp Duty
“Stamp duty is calculated only on the purchase price.”
Not necessarily.
The relevant value for transfer stamp duty may be the purchase consideration or the market value of the property, whichever is higher.
“The stamp duty rate shown for my property applies to the whole purchase price.”
Not necessarily.
For Malaysian citizens and permanent residents, the standard rates are progressive and apply to different portions of the property’s value.
“If I am a first-time buyer, I automatically do not have to pay stamp duty.”
Not necessarily.
The available exemption is subject to specific eligibility requirements, including the value and type of property and the status of the purchaser.
“Stamp duty on the MOT is the only stamp duty I need to pay.”
Not necessarily.
If the property purchase is financed, stamp duty may also be payable on the loan or financing documentation.
- Why Should Buyers Calculate Stamp Duty Before Purchasing?
Stamp duty can represent a significant upfront cost in a property transaction.
Before committing to a purchase, buyers should therefore consider: –
- the purchase price;
- the deposit;
- legal fees;
- stamp duty on the transfer;
- stamp duty on the loan documentation;
- applicable taxes and disbursements; and
- whether any exemption or relief may be available.
If you are considering purchasing a property in Malaysia, you may use our Property Legal Fees, Stamp Duty & Loan Calculators to obtain an initial estimate of the legal fees and stamp duty involved.
The calculation is intended as a general estimate only. The actual amount payable will depend on the circumstances of the transaction, the applicable legislation and any available exemption or remission.
If you require further information or advice on property stamp duty in Malaysia, including the applicable rates, exemptions or transaction costs, please feel free to contact us for further assistance.
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