Stamp Duty Exemption for First Home Malaysia 2026 — Full Guide – ClickBina
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🏠 Property Law · Stamp Duty

Stamp Duty Exemption
for First Home Malaysia (2026)

How Malaysian first-time homebuyers can save thousands in stamp duty under Budget 2026 — eligibility rules, the RM500,000 threshold, i-MILIKI history, and how to claim.

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First-time Malaysian homebuyers purchasing a residential property priced up to RM500,000 enjoy a full stamp duty exemption on both the Memorandum of Transfer (MOT) and the loan agreement, extended until 31 December 2027 under Budget 2026. The earlier i-MILIKI 75% partial exemption for properties RM500,001–RM1,000,000 ended on 31 December 2023 and was not renewed. All figures are verify current rate — confirm with Stamp Duty Branch, LHDN before signing.

By Richard Tan · ClickBina · Klang Valley · Updated 24 May 2026

On this page
Overview of the exemptionWho qualifiesHow much you saveNormal stamp duty rates for comparisoni-MILIKI and HOC historyHow to claimDocuments requiredCommon pitfalls and disqualifiersBudget 2026 extension detailsFirst-home scheme comparison tableSources & official references

Stamp duty law is subject to change. Always verify current rates with LHDN or a solicitor before signing any instrument. Questions? WhatsApp ClickBina →

Overview: stamp duty exemption for first-time homebuyers

When you buy property in Malaysia, you pay stamp duty under the Stamp Act 1949 (Act 378) on two instruments:

  • MOT (Memorandum of Transfer / Form 14A) — the instrument transferring ownership of the property to you. Ad valorem stamp duty is calculated on the property price.
  • Loan agreement — your mortgage document with the bank. Stamp duty is 0.5% of the loan amount.

For a first-time Malaysian homebuyer purchasing a residential property up to RM500,000, the government exempts both instruments from stamp duty. This exemption has been continuously extended since it was first introduced, and under Budget 2026 (tabled October 2025), it was extended until 31 December 2027.

For general stamp duty rates on all property purchases, see our stamp duty Malaysia guide →.

Who qualifies for the first-home stamp duty exemption?

ConditionRequirement
CitizenshipMalaysian citizen only (PR does not qualify)
First propertyMust never have owned any residential property in Malaysia, including through gift, inheritance or joint ownership
Property typeResidential property only — house, apartment, condo, terrace, semi-D, bungalow. Commercial or mixed-use titles do not qualify
Price capProperty purchase price / market value up to RM500,000 (verify current threshold)
Instrument dateSPA (or Memorandum of Transfer for sub-sales) must be signed on or before 31 December 2027 to qualify under the current extension

Joint purchase

If two first-time buyers jointly purchase a property, both must qualify individually. If one co-purchaser has previously owned property, the exemption does not apply to either party — even if the other buyer is genuinely a first-timer.

How much stamp duty do you save?

The saving depends on the property price. Below are illustrative figures based on current stamp duty rates (verify before relying):

Property priceNormal MOT stamp dutyNormal loan SD (90% loan)Total SD normally payableWith first-home exemption
RM300,000RM5,000RM1,350RM6,350RM0
RM450,000RM9,000RM2,025RM11,025RM0
RM500,000RM10,000RM2,250RM12,250RM0
RM600,000 (above threshold)RM13,000RM2,700RM15,700Full SD payable — no exemption

MOT stamp duty figures above: 1% on first RM100k, 2% on next RM400k, 3% on next RM500k, 4% above RM1m (verify current rates). Loan SD at 0.5% of loan amount. Indicative only.

Normal stamp duty rates for comparison (verify current rate)

For buyers who do not qualify for the first-home exemption, or for properties above RM500,000, standard ad valorem stamp duty applies on the MOT:

Price bandStamp duty rateCumulative SD at top of band
First RM100,0001% (verify)RM1,000
RM100,001 – RM500,0002% (verify)RM9,000
RM500,001 – RM1,000,0003% (verify)RM24,000
Above RM1,000,0004% (verify)—

Loan agreement stamp duty is a flat 0.5% of the loan amount, regardless of property price.

i-MILIKI initiative and HOC: historical context

The stamp duty landscape for first-home buyers in Malaysia has evolved through several government programmes:

  • Homeownership Campaign (HOC) 2019 & 2020–2021: A broader stimulus that gave stamp duty exemptions on MOT and loan agreements for new residential property purchased from developers, up to certain thresholds.
  • i-MILIKI (2022–2023): A post-HOC continuation specifically for first-time homebuyers. Under i-MILIKI, buyers of homes priced RM500,001–RM1,000,000 received a 75% stamp duty exemption (on both MOT and loan agreement). This was a significant partial relief for buyers in the RM500k–RM1m mid-market. However, i-MILIKI expired on 31 December 2023 and was not extended in Budget 2024, Budget 2025 or Budget 2026.
  • Current regime (from 2024 onward): Only the full exemption for sub-RM500,000 residential properties remains, extended to 31 December 2027 under Budget 2026. There is no partial exemption for properties above RM500,000 for first-home buyers.

How to claim the first-home stamp duty exemption

  1. Confirm eligibility before signing the SPA — ensure neither buyer has ever owned residential property in Malaysia.
  2. Sign the SPA on or before 31 December 2027 (current extension end date).
  3. Your conveyancing solicitor will prepare the MOT and loan agreement and make the exemption declaration in the stamping process — either electronically via LHDN’s e-Stamp system or at the Stamp Duty Branch.
  4. The solicitor will submit a statutory declaration (or equivalent declaration) confirming that the buyer has never owned residential property in Malaysia.
  5. Keep all documents — LHDN can audit the exemption claim and revoke it if found to be incorrectly claimed, with penalties and backdated stamp duty payable.

Documents typically required

  • Sale and Purchase Agreement (SPA)
  • Identity card (MyKad) of all buyers
  • Statutory declaration confirming first-time ownership
  • Loan agreement with the bank (for loan SD exemption)
  • Property title document or master title reference

Your solicitor will coordinate the full set. You do not stamp the instruments yourself — this is handled by the conveyancing lawyer as part of the standard purchase process.

Common pitfalls and disqualifiers

  • Previous residential property ownership — including inherited property, jointly owned property with family members, or property received as a gift, disqualifies you from the exemption even if you did not purchase it yourself.
  • Commercial property or mixed-use title — the exemption applies only to residential titles. Serviced apartments or SoHo units with commercial titles do not qualify.
  • Joint purchase where one buyer does not qualify — if your co-buyer previously owned property, the entire transaction loses the exemption.
  • Property priced above RM500,000 — no exemption applies from 2024 onward; there is no i-MILIKI equivalent currently.
  • SPA signed after 31 December 2027 — unless the government extends the exemption again, buyers who sign after this date will pay full stamp duty.

Budget 2026 extension details

Malaysia’s Budget 2026 (tabled in Parliament on 10 October 2025) included the extension of the first-home stamp duty exemption for residential properties up to RM500,000 until 31 December 2027. This was confirmed by the Ministry of Finance (MOF) and reported in The Star and other financial media in October 2025. The Budget 2026 also introduced changes to stamp duty for foreign buyers (flat rate of 4%–8% on residential property transfers by non-citizens and foreign companies), while leaving the first-home citizen exemption unchanged.

For the full Budget 2026 stamp duty changes across all buyer categories, see our stamp duty Malaysia guide →.

First-home scheme comparison table

Scheme / initiativePeriodPrice rangeExemption levelStatus
First-home stamp duty exemption (MOT + loan)Extended to 31 Dec 2027Up to RM500,000100% (full exemption)Active
i-MILIKI2022 – 31 Dec 2023RM500,001 – RM1,000,00075% exemption (MOT + loan)Expired
HOC 2019 / 2020–212019, 2020–2021Various, new dev onlyFull exemption (new dev)Expired
Spousal/family transfer SD exemptionOngoingAll values (up to RM1m at 100%)100% up to RM1m; 50% remission aboveActive
⚠️ All stamp duty figures above are verify current rate. Confirm with LHDN or your solicitor before signing any instrument. The exemption end date of 31 December 2027 is subject to Budget decisions by the Ministry of Finance.

Sources & official references

FAQ

Common Questions

Do first-time homebuyers in Malaysia get stamp duty exemption in 2026?
Yes. Malaysian first-time homebuyers purchasing a residential property up to RM500,000 enjoy a full stamp duty exemption on both the MOT and loan agreement, extended to 31 December 2027 under Budget 2026. The property must be residential, and the buyer must never have owned any residential property in Malaysia.
What is the stamp duty exemption threshold for first-time buyers in Malaysia?
The current threshold (verify current rate) is RM500,000. First-time Malaysian citizen buyers who purchase a residential property at or below this price pay zero stamp duty on both the Memorandum of Transfer (MOT/Form 14A) and the loan agreement.
Is there still a stamp duty exemption for first-home buyers above RM500,000?
No. The i-MILIKI scheme, which gave a 75% stamp duty exemption for first-home buyers on properties priced RM500,001–RM1,000,000, expired on 31 December 2023 and has not been renewed. Buyers above RM500,000 pay full ad valorem stamp duty from 2024 onward.
Can permanent residents (PR) claim the first-home stamp duty exemption in Malaysia?
No. The first-home stamp duty exemption is restricted to Malaysian citizens only. Permanent residents do not qualify, though they may benefit from other stamp duty rates applicable to their buyer category.
What if I co-buy with my spouse but one of us owned property before?
If either co-buyer previously owned any residential property in Malaysia (including gifted or inherited property), the exemption does not apply to either party. Both buyers must independently meet the first-time ownership criterion for the exemption to be valid.
How does the stamp duty exemption interact with RPGT?
They are separate taxes under different laws. The stamp duty exemption (Stamp Act 1949) applies when you buy a property. RPGT (RPGT Act 1976) applies when you sell. Qualifying for stamp duty exemption on your purchase does not affect your RPGT liability when you eventually sell.
Does the first-home stamp duty exemption apply to sub-sale (secondary market) properties?
Yes, it applies to both new launches (from developer) and sub-sale (secondary market) residential properties, provided the buyer meets the eligibility criteria and the SPA/MOT is dated on or before 31 December 2027.
What documents do I need to claim the first-home stamp duty exemption?
Your conveyancing solicitor will handle the declaration process on your behalf during the stamping procedure. You typically need to provide your MyKad, sign a statutory declaration confirming you have never owned residential property, and provide the SPA. Keep all these records as LHDN may audit the claim.

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