Stamp Act 1949 · First Schedule, item 32(a)
The rate climbs,
one step at a time.
Stamp duty on the transfer is worked out in slices of the price: each slice at its own rate, then added up. The steps here are the four tiers now in force.
The short answer
When you buy a home in Malaysia, stamp duty on the memorandum of transfer is tiered: 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1,000,000 and 4% above that. The loan agreement carries a further 0.5% of the loan. Under the first-home exemption now in force, a Malaysian citizen buying a first residential unit with a market value of up to RM500,000, on an SPA signed between 1 January 2021 and 31 December 2027, pays no stamp duty on either the transfer or the loan agreement. Legal fees on a purchase from a developer follow Table B of the Solicitors’ Remuneration Order 2023, and no discount is allowed.
- Stamp duty on the transfer
- 1–4%tiered by price
- Stamp duty on the loan agreement
- 0.5%of the loan
- First-home exemption in force
- ≤ RM500kSPA signed by 31 December 2027
- Budget 2027
- Proposedup to RM750,000; not yet law
Compiled by Kevin LeeUpdated
Work out the stamp duty and legal fees yourself
Calculated on the rules now in force. It leaves out the Budget 2027 proposal and disbursements. The final amounts are those in LHDN’s assessment and your lawyer’s bill.
- Stamp duty on the transfer (MOT)
- —
- 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1,000,000 and 4% above
- Stamp duty on the loan agreement
- —
- 0.5% of the loan
- Legal fee: the SPA
- —
- Solicitors’ Remuneration Order 2023, Table B
- Legal fee: the loan documents
- —
- The same structure, on the loan amount; subsidiary documents are charged separately
- Disbursements
- Not included
- Registration fees, search fees and the like are itemised and charged separately
The new exemption proposed in Budget 2027 (homes up to RM750,000) is only a proposal and not yet law, so this calculator leaves it out.
Stamp duty: the transfer and the loan agreement
| Portion of the price | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 to RM500,000 | 2% |
| RM500,001 to RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
Stamp duty on the loan agreement is 0.5% of the loan (stated as the current position in the Ministry of Finance’s Budget 2027 tax measures).
LHDN’s latest published rates prevail.
Sources: Inland Revenue Board (LHDN): introduction to stamp duty; EdgeProp: the first-home stamp-duty relief explained (2026-10-16); Ministry of Finance: Budget 2027 tax measures (2026-10-09); P.U.(A) 106/2015: amendment to the Housing Development (Control and Licensing) Regulations 1989 (housing ministry copy) (2015-07-01)
The first-home stamp duty exemption (to 31 December 2027)
Under P.U.(A) 53/2021 and 54/2021, as amended by P.U.(A) 448/2025 and 449/2025 (gazetted on 23 December 2025 to carry out the extension announced in Budget 2026), an individual Malaysian citizen buying a first residential unit with a market value of up to RM500,000, on an SPA signed between 1 January 2021 and 31 December 2027, is fully exempt from stamp duty on the memorandum of transfer and the loan agreement.
- The conditions include never having owned a residential property, including one inherited or received as a gift, whether alone or jointly.
- The loan must come from a prescribed lender, such as a licensed bank or a licensed Islamic bank.
- A statutory declaration goes with the application.
One point still unsettledWhether serviced apartments and SOHO units qualify. LHDN’s statutory declaration form says they do not, but the Malaysian Bar points out that this conflicts with the definition of “residential property” as amended by the Finance Act 2025, and takes the view that the law prevails. The authorities’ final word will settle it.
Sources: Malaysian Bar Circular 128/2026 (first-home stamp-duty exemption) (2026-04-16); Skrine: five stamp-duty exemption orders extended (2026-01-02); Ministry of Finance: Budget 2027 tax measures (2026-10-09)
What did Budget 2027 propose?
Proposed: not a rule in force until it is enacted or gazetted
Budget 2027, tabled on 9 October 2026, proposes that for a Malaysian citizen buying a first home on an SPA signed between 1 January 2027 and 31 December 2030:
- a home priced at up to RM500,000 would be fully exempt from stamp duty on the loan agreement and the transfer;
- a home priced at up to RM750,000 would be fully exempt on the first RM500,000, with 50% off the duty on the part between RM500,000 and RM750,000.
The proposal speaks of the house price; the orders in force test the market value. The final conditions, including the never-owned test, the types of home covered and the basis of valuation, will be those of the exemption order when it is gazetted.
Sources: Ministry of Finance: Budget 2027 tax measures (2026-10-09)
Legal fees: buying from a developer means Table B
For a purchase from a developer (a transaction under Act 118), the legal fee is a set share of the standard scale, and no discount is allowed; the loan documents are charged on the same structure. Disbursements such as registration fees, stamp duty and search fees are extra.
| Table A (standard scale) | Fee |
|---|---|
| First RM500,000 | 1.25% (minimum RM500) |
| Next RM7,000,000 | 1% |
| Above RM7,500,000 | Negotiable, up to 1% |
| Table B (buying from a developer) | Fee |
|---|---|
| RM50,000 or less | RM500 |
| RM50,001 to RM250,000 | 75% of Table A (minimum RM500) |
| RM250,001 to RM500,000 | 70% of Table A |
| RM500,001 to RM1,000,000 | 65% of Table A |
| Above RM1,000,000 | 50% of Table A |
Example: for a RM600,000 home bought from a developer, Table A gives RM6,250 + RM1,000 = RM7,250; Table B takes 65% of that, RM4,712.50 (before disbursements). Under clause 33(1) of the standard strata SPA, each party bears its own legal fees, and the Regulations bar advertisements from offering “free legal fees”.
Sources: Malaysian Bar Circular 185/2023 (Solicitors’ Remuneration Order 2023) (2023-07-13); P.U.(A) 106/2015: amendment to the Housing Development (Control and Licensing) Regulations 1989 (housing ministry copy) (2015-07-01)
The monthly and yearly costs
- Maintenance fees and sinking fund: paid to the developer from handover, the first 4 months in advance and then monthly in advance; by law the sinking fund is 10% of the maintenance fees (Strata Management Act 2013, section 12(4)).
- Water and electricity accounts: the sums the suppliers require to open them are paid within 30 days of notice (clause 22(2) of the SPA).
- Quit rent and assessment tax: borne by the buyer from handover or transfer, whichever comes first (clause 21(1)).
| KL assessment tax rate (× annual value) | Within the 36 sq mi area | Outside it |
|---|---|---|
| Residential building | 4% | 4% |
| Serviced apartment | 7% | 5% |
| Commercial building | 10% | 8% |
| Low-cost flats | 2% | 2% |
Sources: Act 757: Strata Management Act 2013 (housing ministry copy); P.U.(A) 106/2015: amendment to the Housing Development (Control and Licensing) Regulations 1989 (housing ministry copy) (2015-07-01); DBKL: Valuation and Property Management Department (Commissioner of Buildings and assessment tax)
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KEVIN LEE李明伟
13 years in real estateSenior Property AdvisorREN 14973
Affiliated agency: FLP REALTY SDN. BHD.
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