Stamp Duty Exemption Malaysia 2026:
Complete Buyer's Guide

What Is Stamp Duty?

Stamp duty is a government tax levied on legal documents relating to the transfer of property ownership in Malaysia. It is administered by the Inland Revenue Board of Malaysia (LHDN) under the Stamp Act 1949. When you buy a property — whether from a developer (new launch) or from a seller in the secondary market (subsale) — you are required to pay stamp duty on both the Sale and Purchase Agreement (SPA) and your home loan agreement.

For many buyers, stamp duty represents one of the largest upfront costs outside the downpayment itself. Understanding the rates, exemptions and calculation method is therefore essential before you commit to a purchase.

Current Stamp Duty Rates 2026

The stamp duty on a Sale and Purchase Agreement (MoT — Memorandum of Transfer) is charged on a tiered scale based on property value:

Purchase Price Band	Rate	Stamp Duty Payable on Band
First RM 100,000	1%	RM 1,000
RM 100,001 – RM 500,000	2%	Up to RM 8,000
RM 500,001 – RM 1,000,000	3%	Up to RM 15,000
Above RM 1,000,000	4%	On the excess above RM 1M

These rates apply to residential properties. Commercial properties are typically charged at a flat 3% on the full value.

SPA vs Loan Agreement Stamp Duty

There are two separate stamp duty charges every property buyer must budget for:

1. Memorandum of Transfer (MoT / SPA Stamp Duty)

This is the main stamp duty on the transfer of title, calculated using the tiered rates above. It is payable once and is due within 30 days of the SPA execution date for new launches (or the signing date for subsale transactions).

2. Loan Agreement Stamp Duty

Your home loan documentation is also subject to stamp duty at a flat rate of 0.5% of the total loan amount. If you borrow RM 450,000, your loan agreement stamp duty is RM 2,250. This is separate from and in addition to the SPA stamp duty.

Exemptions Available in 2026

First Home Buyer Exemption (Residential Properties up to RM 500,000)

Malaysian citizens purchasing their first residential property valued at RM 500,000 and below are eligible for a full stamp duty exemption on the MoT under the government's Skim Perumahan Mampu Milik programme. This exemption has been a consistent feature of federal budgets and was reaffirmed in Budget 2026. The exemption applies to both the SPA stamp duty and the loan agreement stamp duty for first-time buyers in this price range.

To qualify, you must: (a) be a Malaysian citizen; (b) have never owned a residential property before; (c) be purchasing a residential (not commercial) property; and (d) obtain the loan under a conventional or Islamic home financing facility.

HOC-Style Campaign Relief

The Home Ownership Campaign (HOC) — which ran in 2019 and again in 2020–2021 — provided stamp duty exemptions on both MoT and loan agreements for properties priced between RM 300,000 and RM 2.5 million. As of early 2026, no active HOC campaign is in force. Buyers should monitor announcements from the Ministry of Housing (KPKT) for any reactivation.

RPGT (Real Property Gains Tax) — Not Stamp Duty, But Related

While not technically stamp duty, buyers planning to sell within a few years should be aware that properties sold within 3 years of purchase attract RPGT at 30% for citizens. After 3–5 years it drops to 20%, and from year 6 onwards it is 0% for Malaysian citizens. Planning your exit strategy matters.

Worked Examples

Example A: First-Time Buyer, RM 420,000 condo in Seberang Jaya

• SPA stamp duty (without exemption): RM 1,000 + (2% × RM 320,000) = RM 7,400
• Loan agreement stamp duty (on RM 378,000 loan at 90%): RM 1,890
• With first home buyer exemption: both charges waived = RM 0
• Saving: RM 9,290

Example B: Investor, RM 750,000 high-rise in Jelutong (second property)

• SPA stamp duty: RM 1,000 + RM 8,000 + (3% × RM 250,000) = RM 16,500
• Loan agreement stamp duty (on RM 600,000 loan at 80%): RM 3,000
• Total stamp duty: RM 19,500
• No exemptions apply (second property, above RM 500,000)

Example C: RM 1,200,000 commercial unit in Bayan Lepas

• Commercial property stamp duty at 3% on full value: RM 36,000
• Loan agreement stamp duty (on RM 960,000 loan at 80%): RM 4,800
• Total: RM 40,800

Tips to Reduce Your Stamp Duty Bill

1. Buy your first property under RM 500,000. The first-home exemption is the single biggest stamp duty saving available — worth thousands of ringgit.
2. Use a joint application strategically. If buying jointly with a spouse who has previously owned property, the exemption may still partially apply — consult a property lawyer before structuring the purchase.
3. Negotiate developer absorption. Some developers, particularly on new launches, absorb stamp duty as a promotional incentive. This is worth negotiating as part of your purchase package.
4. Time the RPGT holding period. If you plan to sell, holding beyond 5 years eliminates RPGT entirely for citizens — factor this into your investment horizon.
5. Check if the property qualifies under government schemes. PR1MA and MyHome properties sometimes carry additional stamp duty relief — ask your consultant to confirm eligibility.

Navigating stamp duty rules, exemptions and government schemes can be confusing — especially when you're managing financing, unit selection and negotiation at the same time. SoSo Property's consultants work with experienced property lawyers and can connect you with the right professionals to ensure you pay no more stamp duty than you are legally required to.