Malaysia Stamp Duty on Property 2026: Memorandum of Transfer and Loan Agreement Rates
Last verified: 28 October 2026 against LHDN's stamp duty guideline for First Schedule instruments. Short answer: The transfer document (Memorandum of Transfer) is stamped on a sliding scale of 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million and 4% above that, based on the price or market value, whichever is higher [LHDN stamp duty guideline]. A loan agreement is generally stamped at RM5 per RM1,000 (0.5%) of the loan [LHDN stamp duty guideline]. The buyer pays the transfer duty [LHDN stamp duty guideline].
Talreon is an independent publisher and is not affiliated with LHDN (Lembaga Hasil Dalam Negeri Malaysia, the Inland Revenue Board). This page explains the process in our own words; the agency's own website and notices are the final word.
Memorandum of Transfer (MOT) scale
LHDN charges ad valorem duty on the higher of the price paid or the market value, for every RM100 or part of it [LHDN stamp duty guideline].
| Portion of the value | Duty per RM100 | Effective rate |
|---|---|---|
| First RM100,000 | RM1 | 1% |
| Above RM100,000 up to RM500,000 | RM2 | 2% |
| Above RM500,000 up to RM1,000,000 | RM3 | 3% |
| Above RM1,000,000 | RM4 | 4% |
Other rates that may apply
| Situation | Rate | Source |
|---|---|---|
| Loan or financing agreement (general case) | RM5 per RM1,000 or part, about 0.5% of the loan | LHDN guideline, Hire-Purchase loan guideline [LHDN stamp duty guideline] |
| Property sold to a foreign company or a non-citizen who is not a permanent resident | RM4 per RM100 (4%) | [LHDN stamp duty guideline] |
| Residential property sold from 1 January 2026 to a foreign company or a non-citizen who is not a permanent resident | RM8 per RM100 (8%) | [LHDN stamp duty guideline] |
Worked example (our own arithmetic)
A Malaysian buys a home for RM500,000 with a RM450,000 housing loan, and no remission applies:
- MOT: RM100,000 × 1% = RM1,000, plus RM400,000 × 2% = RM8,000, so RM9,000 in total.
- Loan agreement: RM450,000 × 0.5% = RM2,250.
- Total stamp duty before any remission: RM11,250.
For a quick estimate with your own numbers, see our upfront costs of buying a house guide and the Malaysia home loan calculator.
First-home and other remissions
The Government issues stamp duty remission orders from time to time, for example for first-home purchases. LHDN publishes the current orders and their gazette numbers on its stamp duty orders page. Eligibility, price caps and dates differ between orders, so check the order that matches your sale and loan dates before relying on a remission. We have not listed remission amounts here because they change with each Budget.
Step by step: how stamping is usually done
- Your lawyer (or you) submits the instrument for assessment in LHDN's online STAMPS system [LHDN STAMPS].
- LHDN assesses the duty on the price or market value, whichever is higher [LHDN stamp duty guideline].
- Pay the assessed duty and download the stamp certificate from STAMPS.
- Keep the stamped MOT and loan agreement with your purchase documents.
Frequently asked questions
Who pays stamp duty on a Malaysian property purchase?
LHDN's guideline names the buyer (the transferee) as the person liable for duty on a property transfer.
Is stamp duty based on the price or the valuation?
On the higher of the price paid or the market value of the property.
What is the stamp duty on a housing loan agreement?
Generally RM5 for every RM1,000 or part of it, which is about 0.5% of the loan, unless a remission order applies.
Do foreigners pay more?
Yes. A sale of residential property to a foreign company or a non-citizen who is not a permanent resident is charged 8% from 1 January 2026, according to LHDN's guideline.
Where to check it yourself
- LHDN stamp duty guideline (PDF, Bahasa Malaysia)
- LHDN stamp duty remission orders
- LHDN STAMPS online stamping
Talreon is not affiliated with LHDN (Lembaga Hasil Dalam Negeri Malaysia, the Inland Revenue Board). Figures and steps on this page were checked against the linked pages on 28 October 2026. Read our editorial and review process and figures update log. Spotted something out of date? Email support@talreon.com with the page address.
Change log: 28 October 2026 – first published. Educational information only; not tax, financial or legal advice.