Malaysia Property Stamp Duty Guide 2026: MOT Tiers, Loan Agreements & First Home Relief
Acquiring real estate in Malaysia involves statutory legal stamping duties administered under the Stamp Act 1949 (Act 378) by the LHDN Stamp Duty Division. Whether you are searching "stamp duty on mot malaysia", "first home buyer malaysia stamp duty", "stamp duty on loan agreement malaysia", or "duty stamp malaysia calculation", this 2026 guide covers tiered MOT rates, loan agreement duties, and statutory exemptions.
Stamp Duty Key Highlights 2026
- •MOT Tiered Rates: 1% (first RM100k) → 2% (next RM400k) → 3% (next RM500k) → 4% (>RM1m).
- •Loan Agreement Duty: Flat 0.5% of total bank loan amount.
- •First Home Relief: 100% Stamp Duty Exemption on MOT & Loan for homes ≤ RM 500,000.
- •Zero Estate Duty: Estate Tax was repealed in 1991 (RM 10 nominal duty on Will transfers).
1. Memorandum of Transfer (MOT) Tiered Rate Schedule
When purchasing property in Malaysia, the Memorandum of Transfer (MOT / Form 14A) or Deed of Assignment transfers legal ownership from seller to buyer. MOT stamp duty is calculated on the property price or market value (whichever is higher) using a progressive tiered scale:
| Property Value Tiers (MYR) | Statutory MOT Stamp Duty Rate | Max Duty per Tier (MYR) | Cumulative Duty (MYR) |
|---|---|---|---|
| First RM 100,000 | 1% | RM 1,000 | RM 1,000 |
| Next RM 400,000 (RM 100,001 – RM 500,000) | 2% | RM 8,000 | RM 9,000 |
| Next RM 500,000 (RM 500,001 – RM 1,000,000) | 3% | RM 15,000 | RM 24,000 |
| Above RM 1,000,000 | 4% | — | 4% on Balance Value |
2. Housing Loan Agreement Stamp Duty (0.5% Rate)
In addition to the MOT, property buyers taking out a bank mortgage loan must pay stamp duty on the facility agreement.
Under Item 27, First Schedule of the Stamp Act 1949, loan agreement stamp duty is charged at a flat rate of 0.5% of the total loan amount. For example, a bank loan of RM 600,000 incurs RM 600,000 × 0.5% = RM 3,000 in loan agreement stamp duty.
3. First-Time Home Buyer Stamp Duty Exemptions
To assist Malaysian citizens in owning their first residential property, the Ministry of Finance grants statutory stamp duty exemptions:
Homes Priced Up To RM 500,000
First-time Malaysian home buyers purchasing a residential home priced up to RM 500,000 pay RM 0 stamp duty on both MOT and Loan Agreement (saving up to RM 11,500).
Homes Priced RM 500,001 to RM 1,000,000
First-time home buyers purchasing properties priced between RM 500,001 and RM 1,000,000 receive a 75% stamp duty remittal on the MOT.
4. Property Transfers via Wills, Gifts & Family Love and Affection
When property is transferred between family members without a commercial sale, special stamp duty rules apply under LHDN guidelines:
- Spouse to Spouse (Husband/Wife): 100% Full Exemption on MOT stamp duty under Stamp Duty (Remission) Order.
- Parent to Child / Child to Parent: 100% Full Exemption on the first RM 1,000,000 of property value, and 50% remittal on the balance value.
- Transfer Pursuant to a Will: Nominal stamp duty of RM 10 per document under Item 32(i), First Schedule.
5. Estate Duty & Inheritance Tax Status in Malaysia
Many international investors inquire about "estate duty malaysia" or "malaysia estate tax".
In Malaysia, Estate Duty was completely repealed under the Estate Duty Repeal Act 1991 (effective 1 November 1991). Malaysia levies zero inheritance tax on money, shares, or property passed to beneficiaries upon death!
6. Worked Calculation Example: RM 750,000 Property
Consider a non-first-time home buyer purchasing a residential house for RM 750,000 with an 80% bank loan (RM 600,000):
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