Ad valorem transfer duty on the progressive 1 to 4 percent scale.
Stamp duty (MOT)
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Effective rate
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Net of duty
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Your breakdown
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Item
Amount
Worked example
Take a property bought for RM600,000, which is also taken as the market value. Stamp duty on the Memorandum of Transfer is charged band by band, not at a single rate on the whole price. The first RM100,000 is charged at 1 percent, which is RM1,000. The next RM400,000, from RM100,001 to RM500,000, is charged at 2 percent, which is RM8,000. The remaining RM100,000, from RM500,001 to RM600,000, sits in the 3 percent band and adds RM3,000. Adding the bands gives RM12,000 of stamp duty, an effective rate of about 2 percent of the price. On top of the price, the buyer would pay this RM12,000 plus separate loan-agreement stamp duty and legal fees.
Band
Rate
Duty (RM)
First 100,000
1%
1,000
100,001 to 500,000
2%
8,000
500,001 to 600,000
3%
3,000
Total stamp duty
12,000
How it is calculated
Ad valorem stamp duty on a Malaysian property transfer is charged on the instrument of transfer, the Memorandum of Transfer, using the higher of the purchase price or the market value. The scale is genuinely progressive: 1 percent on the first RM100,000, 2 percent from RM100,001 to RM500,000, 3 percent from RM500,001 to RM1,000,000, and 4 percent on anything above RM1,000,000. Because only the slice within each band is charged at that band's rate, the effective rate rises gently with price rather than jumping. A separate loan-agreement stamp duty of 0.5 percent applies to the financing, and first-time buyers can qualify for full or partial exemption on homes up to set price ceilings, which change with each budget. Duty is normally settled by the buyer before the transfer can be registered.
Frequently asked questions
How much is property transfer stamp duty in Malaysia?
Stamp duty on the Memorandum of Transfer is charged on a progressive scale of the higher of the purchase price or market value: 1 percent on the first RM100,000, 2 percent from RM100,001 to RM500,000, 3 percent from RM500,001 to RM1,000,000, and 4 percent above RM1,000,000.
Do first-time buyers in Malaysia get a stamp duty exemption?
Yes, first-time buyers can qualify for full or partial exemption on the Memorandum of Transfer stamp duty for residential properties below set price ceilings, which are reviewed with each federal budget. The exact thresholds and conditions change over time, so confirm the current exemption limits with LHDN before relying on them in your purchase calculation.
Is MOT stamp duty different from loan agreement stamp duty?
Yes, they are two separate charges. The MOT stamp duty is the ad valorem transfer duty calculated on the property value using the 1 to 4 percent progressive scale. Loan agreement stamp duty is a separate charge of 0.5 percent applied to the financing amount. Both are normally settled by the buyer before the respective instruments can be registered.
What is the stamp duty on a RM500,000 property in Malaysia?
On RM500,000, stamp duty is calculated band by band: 1 percent on the first RM100,000 gives RM1,000, and 2 percent on the remaining RM400,000 gives RM8,000, for a total of RM9,000. The effective rate is 1.8 percent of the price. This is separate from loan stamp duty of 0.5 percent on any financing amount.