Stamp Duty Malaysia 2026 and Legal Fees: How to Calculate (with Examples)
Stamp duty Malaysia 2026 comes down to two main bills: a tiered 1%–4% duty on the Memorandum of Transfer (MOT) and a flat 0.5% on your loan agreement. Legal fees follow the Solicitors’ Remuneration Order 2023 (SRO 2023), with a lower statutory scale when you buy from a developer. Every rate below is as at September 2026, with full workings for RM300k, RM500k, RM800k and RM1.2m homes.
Short answer
Buying a home in Malaysia means stamp duty on two documents: the Memorandum of Transfer at 1% on the first RM100,000, 2% to RM500,000, 3% to RM1 million and 4% above, and the loan agreement at 0.5%. A RM500,000 home with a RM450,000 loan costs RM11,250. Malaysian first-time buyers of homes up to RM500,000 are fully exempt until 31 December 2027.
Key numbers at a glance
| MOT stamp duty (citizens and PRs) | 1% / 2% / 3% / 4% tiers, on the higher of price or market value |
|---|---|
| Loan agreement duty | 0.5% of the loan, any nationality |
| SPA stamp duty | Fixed RM10 per copy |
| First-home exemption | Full waiver up to RM500,000; SPA signed 1 Jan 2026 – 31 Dec 2027 |
| Foreigners, residential MOT | 8% from 1 Jan 2026 (commercial and industrial stay at 4%) |
| Legal fees (SRO 2023 Table A) | 1.25% on the first RM500,000, then 1%, plus 8% SST |
| Developer (HDA) legal fees, Table B | 50%-75% of Table A, no further discount |
| Who pays and when | The buyer; your lawyer collects it before stamping |
Key points in 30 seconds
- MOT stamp duty is tiered on the higher of price or market value: 1% on the first RM100k, 2% up to RM500k, 3% up to RM1m and 4% above that.
- The loan agreement is stamped at 0.5% of the loan, so a RM450,000 loan costs RM2,250.
- Malaysian first-time buyers pay no stamp duty on the MOT or the loan for homes up to RM500,000 with an SPA signed from 1 Jan 2026 to 31 Dec 2027.
- Foreign individuals (not PRs) and foreign companies pay a flat 8% on residential MOTs from 1 Jan 2026.
- Legal fees are 1.25% on the first RM500k and 1% after that, charged separately for the SPA and the loan, plus 8% SST; developer (HDA) purchases use a reduced 50%–75% scale.
Stamp duty Malaysia 2026: how is it calculated?
Buying a home involves three stamped documents: the Sale and Purchase Agreement (SPA), the Memorandum of Transfer (MOT, Form 14A) and the loan or facility agreement. The SPA only carries a nominal duty. The money is in the MOT and the loan agreement.
In short: the SPA is the contract between buyer and seller setting the price and terms; the MOT (Form 14A) is what goes to the land office to move the title into your name; and the loan agreement, with the Form 16A charge, is between you and the bank. More terms are in the property glossary.
| Portion of value | Rate | Maximum duty in band |
|---|---|---|
| First RM100,000 | 1% | RM1,000 |
| RM100,001 – RM500,000 | 2% | RM8,000 |
| RM500,001 – RM1,000,000 | 3% | RM15,000 |
| Above RM1,000,000 | 4% | On the excess |
- MOT duty is charged on whichever is higher: the price or the market value. If you buy a subsale unit below valuation, LHDN stamps it on the valuation.
- Loan agreement duty is 0.5% of the loan amount (Stamp Act 1949, First Schedule, Item 27(a)), whatever your nationality.
- The SPA is stamped at a fixed RM10 per copy.
- The 4% top band has applied since 1 January 2019 and did not change in 2026.
First-time buyer stamp duty exemption (homes up to RM500,000)
Budget 2026 extended the first-home exemption by two years. If you qualify, both the MOT and the loan agreement are fully exempt. For every other first-home perk, see first-time homebuyer incentives in Malaysia.
- You are a Malaysian citizen (PRs and foreigners do not qualify).
- You have never owned a residential property in Malaysia, including an inherited, gifted or part-share one.
- The property is residential and priced at no more than RM500,000.
- The SPA is signed between 1 January 2026 and 31 December 2027.
- You sign a statutory declaration, which your lawyer prepares.
There is a hard cliff. A RM500,000 home is fully exempt; a RM500,001 home gets nothing. If you are buying jointly, ask your lawyer to check each buyer’s eligibility against the gazetted exemption order.
The RM500,000 line is a cliff, not a slope. A first-time buyer who signs at RM510,000 loses the waiver completely and pays RM9,300 of MOT duty plus RM2,295 on a 90% loan: about RM11,595 that RM10,000 of negotiation would have saved. The other common miss is budgeting only the 10% deposit, since banks normally will not lend for duty and fees.
Ask Louis directly
Send me the price, your loan margin and whether this is your first home, and I will work the stamp duty and legal fees out at the 2026 rates.
Send me the price, loan amount and whether it is a new or subsale unit and I will send back a free written breakdown of duty, legal fees, SST and disbursements.
Stamp duty for foreigners: 8% on residential property
From 1 January 2026, non-citizens (other than Malaysian PRs) and foreign companies pay a flat 8% MOT duty on residential property, up from 4%. Residential covers landed homes, condos, serviced apartments and SOHOs used only as a dwelling. Commercial and industrial property stays at 4%, and the loan agreement is still 0.5%.
Example: a foreign buyer paying RM1,200,000 for a Johor Bahru condo pays RM1,200,000 × 8% = RM96,000 on the MOT, against RM48,000 under the 2025 rate. Law firms read the new rate as applying to instruments executed from 1 January 2026. If your SPA was signed in 2025 but the MOT is signed in 2026, get your lawyer’s view in writing. The state consent levy and other foreigner costs are covered in foreign buyer paperwork and costs and foreigners buying in Johor.
How much are legal fees for buying a house in Malaysia?
In Peninsular Malaysia, including Johor, conveyancing fees are set by the Solicitors’ Remuneration Order 2023, in force from 15 July 2023. The SPA and the loan documents are each charged on the scale.
| Amount | Fee |
|---|---|
| First RM500,000 | 1.25% (minimum RM500) |
| Next RM7,000,000 | 1% |
| Above RM7,500,000 | Negotiable on the excess, capped at 1% |
| Price or loan amount | Fee |
|---|---|
| RM50,000 or less | RM500 |
| Above RM50,000 to RM250,000 | 75% of Table A |
| Above RM250,000 to RM500,000 | 70% of Table A |
| Above RM500,000 to RM1,000,000 | 65% of Table A |
| Above RM1,000,000 | 50% of Table A |
- Discounts: on Table A work (such as a subsale), a lawyer may give up to 25% off. Table B is already a reduced scale and cannot be discounted further. The Bar Council warned in February 2024 that discounts outside the SRO amount to misconduct.
- SST: add 8% service tax on the professional fee.
- Disbursements: searches, stamping and land office registration fees, courier and copies are charged at cost on top. Ask for them to be itemised in writing.
- Subsidiary documents: 10% of the main fee (minimum RM500, maximum RM2,000).
- Free legal fee packages: developers often pay the SPA or loan legal fees as a promotion, usually on condition that you use their panel firm. Check which documents the offer covers.
How Table B works: for a RM800,000 new home, first work out Table A: RM500,000 × 1.25% + RM300,000 × 1% = RM9,250. The price falls between RM500,000 and RM1m, so the fee is 65% of that, or RM6,012.50, plus 8% SST. The loan documents are charged the same way, using the band the loan amount falls into.
Worked examples: RM300k, RM500k, RM800k and RM1.2m
These assume a Malaysian citizen borrowing 90%, using the rates and scales above. The arithmetic has been checked by script.
| Price | Loan (90%) | MOT stamp duty | Loan agreement duty (0.5%) | Total | First-time buyer (if eligible) |
|---|---|---|---|---|---|
| RM300,000 | RM270,000 | RM5,000 | RM1,350 | RM6,350 | Fully exempt (RM0) |
| RM500,000 | RM450,000 | RM9,000 | RM2,250 | RM11,250 | Fully exempt (RM0) |
| RM800,000 | RM720,000 | RM18,000 | RM3,600 | RM21,600 | Not eligible (above RM500,000) |
| RM1,200,000 | RM1,080,000 | RM32,000 | RM5,400 | RM37,400 | Not eligible (above RM500,000) |
| Price | SPA fee (Table A) | Loan fee (Table A) | Total | With 8% SST | New-property SPA fee (Table B) | New-property loan fee (Table B) | New-property total with 8% SST |
|---|---|---|---|---|---|---|---|
| RM300,000 | RM3,750 | RM3,375 | RM7,125 | RM7,695 | RM2,625 | RM2,362.50 | RM5,386.50 |
| RM500,000 | RM6,250 | RM5,625 | RM11,875 | RM12,825 | RM4,375 | RM3,937.50 | RM8,977.50 |
| RM800,000 | RM9,250 | RM8,450 | RM17,700 | RM19,116 | RM6,012.50 | RM5,492.50 | RM12,425.40 |
| RM1,200,000 | RM13,250 | RM12,050 | RM25,300 | RM27,324 | RM6,625 | RM6,025 | RM13,662 |
Step by step: a RM500,000 subsale
- MOT dutyRM100,000 × 1% = RM1,000, plus RM400,000 × 2% = RM8,000, total RM9,000.
- Loan agreement dutyRM450,000 × 0.5% = RM2,250.
- SPA legal feeRM500,000 × 1.25% = RM6,250, before any discount of up to 25%.
- Loan legal feeRM450,000 × 1.25% = RM5,625. The bank’s panel firm usually acts, but you pay.
- Add SST and disbursementsAdd 8% SST to both fees, then the disbursements your lawyer lists. An eligible first-time buyer saves the full RM11,250 of stamp duty.
To run your own numbers, use the buying costs calculator. For the down payment and every other upfront cost, see how much money you need to buy a house.
Common stamp duty and legal fee mistakes
Mistake 1: duty follows whatever price is in the SPA
MOT duty is charged on the higher of price and market value. If a subsale is priced below market, say a “friendly” sale between relatives, LHDN can assess duty on market value, and the buyer pays the difference plus any penalty. Family transfers have their own exemption rules; an artificially low sale is not the way to handle them. Ask your lawyer first.
Mistake 2: a smaller loan makes little difference
Loan agreement duty and the loan legal fee are both based on the loan amount. On a third property capped at 70%, a RM500,000 home carries a RM350,000 loan and RM1,750 of loan duty, less than at 90%, but you need far more cash for the down payment. The margin rules are in how much money you need to buy a house.
Mistake 3: legal fees on new homes are always free
“Free legal fees” is a developer promotion, not a legal right. Some packages cover only the SPA and not the loan documents, and most require the developer’s panel firm. If you appoint your own lawyer, you pay. Ask before signing the booking form; see booking a new property.
Mistake 4: legal fees are freely negotiable
SRO 2023 is a statutory scale. Table A fees can be discounted by 25% at most and Table B not at all. If a quote is far below the scale, ask whether the difference has been moved into disbursements. Disbursements are charged at cost, so ask for each item.
Mistake 5: self-assessment means you can pay later
The Stamp Duty Self-Assessment System moves the job of assessing duty from LHDN to the taxpayer. Property transfers are expected to join from 2027, with lawyers filing and paying through e-Duti Setem. Errors and late stamping can attract penalties, which makes a lawyer who knows the new system more valuable, not less.
When do you pay stamp duty and legal fees, and who pays?
- At the SPAYou pay part or all of the SPA legal fee and the RM10 SPA duty. What each lawyer does on the day is in signing the SPA and loan agreement.
- After the loan agreementYour lawyer stamps the loan agreement and collects the 0.5% duty and the loan legal fee.
- At transferFor a subsale, the MOT is stamped and presented during the completion period; see the subsale transfer process. For a new project without an individual or strata title yet, ask your lawyer when the MOT will be stamped, because it depends on the title.
- Get a written quote splitting the SPA, loan and MOT fees, SST and disbursements.
- Ask whether your deal falls under Table B (developer sale) or Table A, and whether a discount applies.
- First-time buyers: confirm the statutory declaration is signed and the exemption claimed at stamping.
- Foreign buyers: confirm which execution date decides the 8% rate.
- Keep every stamp certificate; you will need them to work out RPGT when you sell (see selling property and RPGT).
Related questions
How much are stamp duty and legal fees on an RM800,000 house?
For a Malaysian citizen borrowing 90% (RM720,000): MOT duty is RM100,000 at 1% plus RM400,000 at 2% plus RM300,000 at 3%, or RM18,000, and the loan agreement adds RM3,600, giving RM21,600 in stamp duty. On a subsale, Table A legal fees are RM9,250 for the SPA and RM8,450 for the loan, RM17,700 in total, about RM19,116 with 8% SST, before disbursements. The first-home exemption does not apply above RM500,000.
Is stamp duty charged on the agreed price or the bank valuation?
On whichever is higher, the price or the market value. If a subsale is priced below market, such as a friendly sale between relatives, LHDN can assess duty on market value and the buyer pays the difference plus any penalty. Transfers between family members have their own exemption rules, so ask your lawyer rather than writing in a low price. A low bank valuation is a separate issue: it cuts your loan, not your duty.
Is stamp duty cheaper on a new property than a subsale?
The duty is identical: the same MOT tiers and the same 0.5% on the loan, so only price and loan size change the figure. Legal fees are what differ. A purchase from a developer falls under the Housing Development Act, so SRO 2023 Table B applies and the fee is 50% to 75% of Table A. On an RM800,000 home the Table A SPA fee of RM9,250 becomes 65% of that, or RM6,012.50. Developers also often pay one set of fees as a promotion.
What if my first home costs RM510,000 instead of RM500,000?
You lose the exemption entirely. RM500,000 is a hard cliff, with no tapering. At RM510,000 the MOT duty is RM1,000 plus RM8,000 plus 3% of RM10,000, or RM9,300, and a 90% loan of RM459,000 adds RM2,295, for RM11,595 in total. Negotiating RM10,000 off the price is worth far more than it looks when you are sitting just above the line. Other first-home help is in first-time homebuyer incentives.
Frequently asked questions
How much is stamp duty for a house in Malaysia in 2026?
MOT duty is tiered on the higher of price or market value: 1% on the first RM100,000, 2% on the next RM400,000, 3% on RM500,001 to RM1m and 4% above RM1m. The loan agreement adds 0.5% of the loan. A RM500,000 home with a RM450,000 loan pays RM9,000 plus RM2,250, or RM11,250 in total.
Do first-time buyers pay stamp duty in Malaysia?
Not if they qualify. Malaysian citizens who have never owned a home, buying a residential property priced up to RM500,000 with an SPA signed between 1 January 2026 and 31 December 2027, are fully exempt on both the MOT and the loan agreement. Above RM500,000 there is no exemption at all.
What is the stamp duty for foreigners buying property in Malaysia?
From 1 January 2026, foreigners who are not Malaysian permanent residents, and foreign companies, pay a flat 8% on the MOT for residential property, up from 4%. The loan agreement is still stamped at 0.5% of the loan. Commercial and industrial property remains at 4%.
How are lawyer fees calculated for buying property in Malaysia?
Under the Solicitors’ Remuneration Order 2023, the fee is 1.25% on the first RM500,000 (minimum RM500) and 1% on the next RM7m, charged separately for the SPA and the loan. Add 8% SST and disbursements. Developer purchases under the Housing Development Act use Table B, which is 50% to 75% of the normal scale.
Can I negotiate a discount on legal fees?
On Table A work, such as a subsale, lawyers may give up to 25% off the scale fee. Table B fees for developer purchases are already reduced and cannot be discounted further. The Bar Council treats discounts beyond the SRO as misconduct.
Can stamp duty be included in my home loan?
Usually not. A normal housing loan is based on the property price, so stamp duty and legal fees come from your own cash. Some schemes are different: SJKP’s Housing Credit Guarantee Scheme can include legal and valuation fees in the financing. Check with the bank what is covered.
Sources & verification
- KC Group — Stamp Duty Malaysia 2026 guide
- RDS Partners — Key stamp duty changes from 1 January 2026
- KPMG Malaysia — Stamp Act 1949 recent developments
- The Star — Budget 2026: stamp duty exemption extended for first-time homebuyers (10 Oct 2025)
- Malaysian Bar — Circular No 258/2023, Solicitors' Remuneration Order 2023
- EdgeProp — SRO 2023 legal fees and HDA discounts
- CCS — Solicitors' Remuneration Order 2023 (discount rules)
- Free Malaysia Today — Bar Council warns against unauthorised discounts (8 Feb 2024)
Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.
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Louis Koh
11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文
I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.
Stuck on this step? Ask me directly
Send me your situation — new or subsale, budget, state, and where you are in the process — and I will tell you what to do next and what to watch for.
Send me the price, loan amount and whether it is a new or subsale unit and I will send back a free written breakdown of duty, legal fees, SST and disbursements.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT