Cukai tanah, cukai petak and cukai taksiran explained — who pays, how rates are set, and how to pay them online.
General guidance for 2026 — not legal or tax advice. Quit rent rates are set by each State Land Office (PTG); assessment rates are set by each local council. Verify current figures with your PTG or local authority. Need renovation help after buying? Ask ClickBina →
Property ownership in Malaysia triggers two recurring annual charges, each administered by a different government body:
| Tax | Malay name | Who collects | Legal basis |
|---|---|---|---|
| Quit rent (landed) | Cukai tanah | State Land Office (PTG) | National Land Code 1965 (NLC) |
| Parcel rent (strata) | Cukai petak | State Land Office (PTG) | Strata Titles Act 1985 & SMA 2013 |
| Assessment tax | Cukai taksiran / cukai pintu | Local council (PBT) | Local Government Act 1976 |
You pay both charges every year. They are independent of each other — paying quit rent does not reduce your assessment bill. Quit rent funds state land administration; assessment funds local-authority services such as rubbish collection, road lighting and drainage.
Quit rent is a state land tax payable by the registered owner of a piece of land. It is calculated on the land area (in square metres or square feet) at a rate set by each state. Rates differ by state, land category (agricultural, building, industrial) and whether the location is classified as urban or rural. Annual bills for a standard terrace or semi-D house typically fall in the range of RM50–RM500/year, though larger parcels or commercial land can be higher.
Key points under the National Land Code 1965:
When a building is sub-divided into strata titles (condominiums, apartments, SOHOs, serviced residences), the old master-lot quit rent is apportioned to individual parcel owners as parcel rent (cukai petak). Each unit owner receives their own quit rent notice directly from the PTG, calculated as their share of the master lot quit rent in proportion to their share units under the Strata Titles Act 1985.
In practice:
| Feature | Cukai tanah (quit rent) | Cukai petak (parcel rent) |
|---|---|---|
| Property type | Landed (terrace, semi-D, bungalow) | Strata (condo, apartment, SOHO) |
| Billed to | Registered landowner | Individual parcel owner |
| Basis | Land area × rate per sq m / sq ft | Proportionate share of master lot quit rent |
| Typical annual range (KL/Selangor) | RM50 – RM500 | RM50 – RM200 |
| Legal authority | National Land Code 1965 | Strata Titles Act 1985 / SMA 2013 |
| Who administers | PTG (State Land Office) | PTG (State Land Office) |
Assessment tax is a local authority charge levied on all improved properties within a municipal or city council area. It funds services like rubbish collection, public lighting, road maintenance and local amenities. The legal authority is the Local Government Act 1976 (Act 171).
How it is calculated:
For a RM500,000 condo in KL with an AV of RM18,000/year and DBKL’s residential rate of approximately 6%, the annual assessment would be approximately RM1,080 (RM540 per half-year bill).
Each local council sets its own rate. The table below shows indicative residential rates — verify current figures with your local authority as rates are revised periodically:
| Local council (PBT) | Area | Indicative residential rate | Portal |
|---|---|---|---|
| DBKL | Kuala Lumpur | ~6% of annual value | dbkl.gov.my |
| MBPJ | Petaling Jaya | ~6% of annual value | mbpj.gov.my |
| MBSA | Shah Alam | ~4%–6% of annual value | mbsa.gov.my |
| MPSJ | Subang Jaya | ~4%–6% of annual value | mpsj.gov.my |
| MPKlang | Klang | ~4%–5% of annual value | mpklang.gov.my |
| MBPP / MPPP | Penang Island | ~5%–7% of annual value | mbpp.gov.my |
| MPJBT / MBJBT | Johor Bahru | ~4%–6% of annual value | mbjbt.gov.my |
Rates and annual values are set and revised periodically by each council. These are indicative — check your own bill or query your local authority for exact figures.
| Feature | Quit rent / Parcel rent | Assessment tax |
|---|---|---|
| Authority | State (PTG) | Local council (PBT) |
| Legal basis | National Land Code 1965 | Local Government Act 1976 |
| How calculated | Land area × state rate | Annual value × council rate |
| Payment frequency | Once a year (by 31 May) | Twice a year (Feb + Aug) |
| Typical annual cost (condo unit) | RM50 – RM200 | RM300 – RM1,500+ |
| What it funds | State land administration | Local services (rubbish, roads, lighting) |
| Consequence of non-payment | Title forfeiture risk (NLC s.100) | Legal action, 10% surcharge |
Both quit rent and assessment tax are the responsibility of the registered property owner as a statutory obligation. This is not changed by a tenancy agreement unless the tenancy expressly requires the tenant to pay — and even then, the statutory liability to the PTG and council remains with the owner.
Quit rent / parcel rent can be paid via the state’s e-Tanah portal or at the PTG counter. Most Peninsular states now offer online payment. For Selangor, use the Selangor e-Tanah portal (e-tanah.selangor.gov.my). For KL/federal territory, check the PTG Wilayah Persekutuan system. You will need your land title number or parcel title number.
Assessment tax can be paid online via:
Always keep your payment receipts. If you sell the property, the buyer’s lawyer will conduct a quit rent and assessment search to confirm no arrears — unpaid amounts must be cleared before the transfer can proceed.
| Tax type | Late penalty | Consequence |
|---|---|---|
| Quit rent / parcel rent | Interest at PTG rate; forfeiture notice if unpaid for extended period | Land Office can issue notice to forfeit title (NLC s.100) — rare but possible |
| Assessment tax | 10% surcharge on outstanding amount after due date | Council can obtain a court order or charge the property; blocks property transfer |
In practice, a few months of arrears will not trigger forfeiture, but accumulated arrears (especially on assessment tax) will block a sale transfer — the conveyancing search will reveal the debt and completion cannot proceed until it is cleared. For buyers, this is a risk at auction purchases where arrears are not always disclosed upfront.
The Strata Management Act 2013 (Act 757) and the Strata Titles Act 1985 govern how quit rent is apportioned for strata buildings. Key provisions relevant to parcel rent and assessment:
For a full explanation of share units and strata governance, see our strata share units guide → and the strata title explained guide →.
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This guide draws on Malaysian legislation and official bodies. Verify current rates directly:
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