Stamp Duty in Malaysia: The Full 2026 Calculation Guide
Every property purchase carries two stamp duties — one on the transfer and one on the loan. Here is exactly how they are worked out in 2026, the tiers, the foreigner rate, and the exemption that can bring them to zero.
Stamp duty is the cost that surprises most buyers right at the end of a purchase, because it is paid on top of the price and the deposit. The good news is that it is completely predictable once you know the tiers. Let me walk you through the full 2026 calculation the way I do it for my own clients.
The two stamp duties you actually pay
There are two separate charges, and buyers often forget the second one:
- Transfer stamp duty (on the MOT) — charged on the instrument that transfers the title into your name, calculated on the purchase price or the market value, whichever is higher.
- Loan agreement stamp duty — a flat 0.5% of your loan amount, payable only if you take financing.
If you pay cash you only face the first one. If you borrow, you pay both.
The transfer (MOT) stamp duty tiers
For Malaysian citizens and permanent residents, the transfer duty is tiered. Each slice of the price is taxed at its own rate:
| Portion of price | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 – RM500,000 | 2% |
| RM500,001 – RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
A worked example — RM700,000 with a 90% loan
Say a citizen buys a RM700,000 home and borrows RM630,000. The transfer duty is built up slice by slice:
- First RM100,000 × 1% = RM1,000
- Next RM400,000 × 2% = RM8,000
- Next RM200,000 × 3% = RM6,000
- Transfer (MOT) duty subtotal = RM15,000
- Loan agreement: RM630,000 × 0.5% = RM3,150
- Total stamp duty ≈ RM18,150
That is before legal fees and disbursements, which are separate again.
Foreigners: a flat 8% from 2026
From 1 January 2026, non-citizen individuals (excluding permanent residents) and foreign companies no longer use the tiered scale. They pay a flat 8% transfer stamp duty on the whole price, up from the previous 4%. On a RM1 million purchase that is RM80,000 on the transfer alone — so cross-border buyers need to budget for it from day one. The 0.5% loan duty still applies on top if they finance.
The first-time buyer exemption
If you are a Malaysian citizen buying your first home, there is a valuable relief: a 100% exemption on both the transfer (MOT) duty and the loan agreement duty for residential property priced up to RM500,000. It runs until 31 December 2027. On a RM450,000 first home, that can save several thousand ringgit at one stroke.
Not sure what your stamp duty will come to?
Send me the price and whether you are financing, and I will work your stamp duty and the first-buyer exemption out for you on the spot. I am Louis Koh, over a decade in Johor Bahru property.
Frequently asked questions
How is stamp duty calculated in Malaysia?
For citizens and PRs the transfer duty is tiered — 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1,000,000 and 4% above — on the higher of price or market value, plus a flat 0.5% on the loan agreement.
Do foreigners pay more stamp duty?
Yes. From 1 January 2026 non-citizens (excluding PRs) and foreign companies pay a flat 8% transfer stamp duty, up from 4%, plus 0.5% on any loan.
Can a first-time buyer avoid stamp duty?
A Malaysian citizen buying a first home priced up to RM500,000 gets a 100% exemption on both the transfer and loan stamp duty until 31 December 2027, subject to the conditions.
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