What is stamp duty on property?
Stamp duty is a tax charged under the Stamp Act 1949 on the legal instrument that transfers ownership of a property: the Memorandum of Transfer (MOT), or the Deed of Assignment for certain leasehold and auction properties. It is paid by the buyer, and calculated on whichever is higher: the agreed purchase price or the market value assessed by the Valuation and Property Services Department (JPPH).
The stamp duty scale (ad valorem rates)
Stamp duty is charged progressively, in bands, similar to how income tax brackets work. Each portion of the price is taxed at the rate for its own band, so you do not pay the top rate on the full amount.
| Property value band | Rate |
|---|---|
| First RM100,000 | 1% |
| Next RM400,000 (RM100,001 to RM500,000) | 2% |
| Next RM500,000 (RM500,001 to RM1,000,000) | 3% |
| Above RM1,000,000 | 4% |
Worked example: a RM650,000 property
First-time buyer exemption
If this is your first residential property purchase, the government exemption changes the calculation significantly:
- RM500,000 and below: full stamp duty exemption -- you pay RM0 on the transfer instrument.
- Above RM500,000: relief is still applied on a tiered basis, so first-time buyers pay less than the standard scale above, not the full amount.
This exemption has qualifying conditions: it applies to residential property, and the purchase agreement must be executed within the relief period the government has set. Because exemption windows and thresholds are announced and extended Budget by Budget, always confirm the current qualifying period before relying on it, and use the calculator below for your exact figure.
Other costs to budget for
- Loan agreement stamp duty: a separate 0.5% charge on the loan amount, distinct from the transfer duty above.
- Legal fees: typically tiered by property value, in a similar sliding-scale structure.
- SPA copies: a small fixed fee per copy of the Sale and Purchase Agreement.
What about RPGT and foreign buyers?
If you are selling within a few years of purchase, or buying as a non-citizen, different rules apply: Real Property Gains Tax (RPGT) on the seller’s side, and a separate stamp duty treatment for foreign buyers. Both depend on holding period and buyer category, which is exactly the kind of multi-variable calculation better handled by a tool than by hand.
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This guide reflects the stamp duty scale under the Stamp Act 1949, including the first-time buyer exemption currently in effect as of 2026. Rates, thresholds and exemptions are set by the Malaysian government and can change with each Budget announcement. This is general information, not tax advice for your specific transaction. For complex situations (inherited property, company purchases, non-citizen buyers), consult a licensed conveyancing lawyer or LHDN’s official guidance.