Stamp Duty in Malaysia 2026: MOT & Loan Rates – ClickBina
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💵 Property Tax

Stamp Duty in Malaysia
(MOT & Loan) 2026

How much stamp duty you pay when buying property in Malaysia — the transfer (MOT) tiers, the loan duty, exemptions, and a worked example you can copy.

Property stamp duty in Malaysia is tiered on the price or market value (whichever is higher): 1% on the first RM100,000, 2% on RM100,001–500,000, 3% on RM500,001–1,000,000, and 4% above RM1,000,000 for the Memorandum of Transfer (MOT). A separate 0.5% applies to the loan agreement.
📐 Free tool: Try our stamp duty calculator for an instant estimate — no sign-up needed.

General guidance for 2026 — not legal or tax advice. Rates and rules change with each Budget; confirm current figures with LHDN, your state authority or a licensed professional. Just bought? Ask us about renovating →

Stamp duty is a tax on legal documents, governed by the Stamp Act 1949 and administered by LHDN (Lembaga Hasil Dalam Negeri). When you buy property you pay it on two documents: the transfer (MOT/Form 14A) and the loan agreement. It is one of the biggest “hidden” upfront costs of buying, so budget for it early. Unlike renovation costs or furnishing, stamp duty is a one-time unavoidable outlay that hits before you even collect the keys, which is why smart buyers calculate it at the very start of their property search. Understanding how the tiered system works — and knowing about potential exemptions — can make a meaningful difference to how much cash you need to set aside.

MOT (Memorandum of Transfer) stamp duty rates

Property price bandStamp duty rateDuty on that band
First RM100,0001%RM1,000 max
RM100,001 – RM500,0002%Up to RM8,000
RM500,001 – RM1,000,0003%Up to RM15,000
Above RM1,000,0004%On the excess

The duty is charged on the higher of the purchase price or the market value. It is tiered (marginal), so each band is charged at its own rate — not the whole price at the top rate.

Loan agreement stamp duty

If you take a housing loan, the loan agreement is stamped at a flat 0.5% of the loan amount. On a RM450,000 loan that is RM2,250. Cash buyers skip this entirely. The loan stamp duty is payable alongside your legal fees when you sign the loan documents, so factor it into your upfront cash planning.

Worked example: RM600,000 property with a 90% loan

ItemCalculationAmount
MOT — first RM100k1% × 100,000RM1,000
MOT — next RM400k2% × 400,000RM8,000
MOT — next RM100k3% × 100,000RM3,000
MOT totalRM12,000
Loan duty0.5% × 540,000RM2,700
Total stamp dutyRM14,700

Exemptions & first-home schemes

The government periodically offers stamp-duty exemptions or discounts — commonly for first-time homebuyers up to a price cap, and under specific Budget incentives. These change yearly, so check the current Budget and LHDN announcements (or ask your lawyer) before assuming an exemption applies. When an exemption is in force, it typically covers the MOT duty fully or partially on the qualifying portion, and sometimes the loan duty too. Always obtain written confirmation from your lawyer that a specific incentive applies to your transaction.

Stamp duty cost at different price points

Property priceMOT stamp dutyLoan duty (90% loan)Total stamp duty
RM300,000RM5,000RM1,350RM6,350
RM500,000RM9,000RM2,250RM11,250
RM600,000RM12,000RM2,700RM14,700
RM800,000RM18,000RM3,600RM21,600
RM1,000,000RM24,000RM4,500RM28,500

These figures use the standard tiered scale. First-home exemptions or Budget incentives in a given year can reduce these amounts — verify with LHDN or your lawyer.

On top of stamp duty you pay legal fees for the SPA and loan documents, on a regulated scale (roughly 1% on the first RM500,000, lower above), plus disbursements. Altogether, upfront costs beyond the price are typically 3–5%. See our buying property cost guide → and legal fees guide →.

How & where to pay

Your conveyancing lawyer normally handles stamping through LHDN’s STAMPS system as part of the transaction. You can also self-assess and pay via the LHDN stamp duty portal. Keep the stamp certificate — it is proof the document is legally valid. The MOT stamp duty is usually due within 30 days of the instrument being executed, and the loan stamp duty is paid when the loan agreement is signed. Your lawyer will advise on exact timing and collect the funds from you.

Common mistakes to avoid

  • Assuming the same rate applies to the whole price — the tiered structure means only the portion in each band is taxed at that rate. A RM600,000 property attracts 1%, 2% and 3% progressively, not 3% on the full amount.
  • Forgetting loan duty — 0.5% of the loan is a separate payment many buyers overlook until they see the lawyer’s bill. Plan for it alongside legal fees.
  • Not asking about exemptions — if you are a first-time buyer, confirm whether a current Budget exemption applies before calculating your cash requirement. An exemption you miss cannot be claimed retrospectively.
  • Using the purchase price only — if the market value (from the valuer) is higher, stamp duty is charged on the higher figure. This can catch buyers off guard on below-market deals.
  • Not keeping the stamp certificate — the stamped document is proof of a valid, legally enforceable transaction. Store it with your SPA and title documents.

Timeline & process overview

Stamp duty on the MOT is generally processed after the SPA is signed and the loan is approved, before or at the time of transfer registration. Your lawyer collects the funds and handles STAMPS submission. The timeline from SPA signing to MOT registration for a completed subsale is typically 3–4 months. For new-launch projects still under a master title, transfer happens when the individual title is issued, which can be years later. Understanding this timeline helps you plan when the stamp-duty cash will be drawn down so you are not caught short between the SPA deposit and the transfer completion. Talk to your lawyer at the outset about the expected timing of each payment milestone.

After you buy — planning the renovation

Stamp duty and legal fees eat into your upfront budget, so plan the renovation realistically. Our renovation cost guide → and condo renovation guide → help you budget, and if it’s a brand-new unit, claim defects first — see defect inspection →.

Sources & official references

This guide cites Malaysian legislation and official bodies. Always confirm current rates and rules with the official source:

Common Questions

How much is stamp duty when buying property in Malaysia?
It is tiered on the price or market value (whichever is higher): 1% on the first RM100,000, 2% on RM100,001–500,000, 3% on RM500,001–1,000,000, and 4% above RM1,000,000 for the transfer (MOT), plus 0.5% of any loan amount.
Is stamp duty charged on the whole price at one rate?
No. It is marginal/tiered — each band is charged at its own rate. For a RM600,000 property the MOT duty is RM1,000 + RM8,000 + RM3,000 = RM12,000, not 3% of the whole price.
What is loan agreement stamp duty?
A flat 0.5% of your housing loan amount. On a RM450,000 loan that is RM2,250. Cash buyers do not pay this.
Are there stamp duty exemptions for first-time buyers?
The government periodically offers exemptions or discounts for first-time homebuyers up to a price cap under each Budget. These change yearly, so confirm the current incentives with LHDN or your lawyer before finalising your cash requirement.
Who pays and processes the stamp duty?
The buyer pays it, and the conveyancing lawyer normally stamps the documents through LHDN's STAMPS system as part of the transaction.
What are total upfront costs beyond the property price?
Typically 3–5% of the price, made up of stamp duty (MOT + loan), legal fees for the SPA and loan, valuation and disbursements.
What happens if stamp duty is paid on a lower value than the market value?
LHDN may raise an assessment and charge duty on the higher market value, along with penalty interest. Always use the actual transaction value or the valuer's market value, whichever is higher.
Can I pay stamp duty myself, without a lawyer?
Yes — you can self-assess and pay via the LHDN STAMPS portal. However, most buyers use their conveyancing lawyer to handle this as part of the full transaction.

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