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Malaysia Stamp Duty 2026: Rates for Property Buyers and Investors

Malaysia charges tiered Memorandum of Transfer stamp duty of 1% to 4% of the property price, plus 0.5% stamp duty on the loan agreement. Stamp duty is a government tax on legal documents, including property transfer instruments and loan agreements. In Malaysia, it is one of the largest upfront costs in any property purchase. This guide explains the Memorandum of Transfer (MOT) rates, loan agreement duty, first home buyer exemptions, worked examples, and how Malaysia compares with Singapore. For Singapore stamp duty, see the Singapore stamp duty calculator.

What Is Stamp Duty in Malaysia?

When you buy property in Malaysia, two separate stamp duty charges apply:

• MOT (Memorandum of Transfer) stamp duty: Charged on the instrument that transfers legal ownership of the property from seller to buyer
• Loan agreement stamp duty: Charged on the facility agreement between you and the bank for your mortgage

Both are calculated on the purchase price (or market value if higher) and the loan amount respectively. Instruments must be stamped with LHDN (Lembaga Hasil Dalam Negeri) within 30 days of signing, or within 30 days after first reaching Malaysia if signed overseas, according to LHDN stamp duty FAQ. Full details are published on the LHDN stamp duty page.

What Are the MOT Stamp Duty Rates in 2026?

Malaysia uses a tiered rate structure for MOT stamp duty under Item 32(a) of the Stamp Act 1949. The rate applies to each band of the purchase price, not to the full price.

Worked examples:

• MYR 400,000 property: MYR 1,000 (first 100k) + MYR 6,000 (next 300k at 2%) = MYR 7,000
• MYR 700,000 property: MYR 1,000 + MYR 8,000 + MYR 6,000 (200k at 3%) = MYR 15,000
• MYR 1,500,000 property: MYR 1,000 + MYR 8,000 + MYR 15,000 + MYR 20,000 (500k at 4%) = MYR 44,000

The tiers don't apply to foreign buyers. A foreign company, or a person who is neither a Malaysian citizen nor a permanent resident, pays a flat 8% on residential property from 1 January 2026 under section 29 of the Finance Act 2025. Other property stays at the flat 4% in Item 32(aa) of the Stamp Act 1949. On a MYR 700,000 home, that means MYR 56,000 instead of the MYR 15,000 worked out above.

Loan Agreement Stamp Duty

A separate stamp duty applies to the loan facility agreement you sign with your bank. The rate is 0.5% of the loan amount, with no tiered structure, as MOF restated in Budget 2027.

• Loan of MYR 300,000: stamp duty = MYR 1,500
• Loan of MYR 600,000: stamp duty = MYR 3,000

Factor this into your total upfront costs alongside the MOT stamp duty and legal fees.

Do First Home Buyers Get Exemptions?

The Malaysian government has periodically provided stamp duty exemptions for first-time residential property buyers to reduce the upfront cost of homeownership.

Malaysian citizens buying a first residential home priced up to MYR 500,000 get a 100% exemption on both the instrument of transfer and the loan agreement. It covers sale and purchase agreements signed from 1 January 2021 to 31 December 2027, after Budget 2026 extended it by two years. Budget 2027 proposes keeping 100% up to MYR 500,000 and, for homes up to MYR 750,000, 100% on the first MYR 500,000 and 50% on the balance, for agreements signed from 1 January 2027 to 31 December 2030. That part is still a Budget proposal, so check it has been gazetted before you rely on it.

The LHDN statutory declaration for the transfer exemption asks you to confirm that:

• The price doesn't exceed MYR 500,000
• You owned no residential property when you signed the sale and purchase agreement, including property you inherited or were given, alone or jointly
• The home isn't a SOHO, SOFO, SOVO or service apartment
• You've never had an application approved under this exemption

Exemptions are subject to the terms of the applicable budget announcement and must be confirmed at hasil.gov.my or with your solicitor before signing. Do not assume the exemption applies without verification, as thresholds and conditions have changed between budgets.

Malaysia vs Singapore Stamp Duty

Both countries use tiered rates, but Malaysia's stop at 4% while Singapore's Buyer's Stamp Duty reaches 6% on residential property. The structural difference is significant:

• Singapore levies Additional Buyer's Stamp Duty (ABSD) on second and subsequent residential properties and on all foreign buyers. Citizens buying a second property pay 20% ABSD. Foreigners pay 60% ABSD on any residential property purchase.
• Malaysia has no equivalent to ABSD for second properties, but foreign buyers pay a flat 8% on homes instead of the tiers. States also set their own rules for foreign buyers. Those state figures are not verified, so check the official site of the state land authority.

For Singaporeans considering a home in Malaysia, the stamp duty is still lower than on a second home in Singapore, though less so since 2026. A Singapore citizen buying a SGD 1 million apartment in Singapore as a second property would pay SGD 24,600 BSD plus SGD 200,000 ABSD (20%), or SGD 224,600. At Bank Negara Malaysia middle rate of 3.1716 on 5 November 2026, SGD 1 million is about MYR 3,171,600. A foreign buyer of a home at that price would pay the flat 8%, or MYR 253,728, which is about SGD 80,000. A Malaysian citizen on the tiers would pay MYR 110,864, made up of MYR 24,000 on the first MYR 1 million and 4% on the remaining MYR 2,171,600.

The mortgage landscape also differs. Malaysian floating-rate loans use a reference rate, and since 1 August 2022 that has been the Standardised Base Rate, which equals BNM's Overnight Policy Rate for all banks. Singapore bank loans are typically SORA-based variable rates. See the home loan calculator for monthly repayment comparisons. If you are also weighing income tax as a buyer, Malaysian personal income tax rates are set out on the LHDN individual tax rates page.

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