The 2026 Guide to Stamp Duty & MOT Exemptions for First-Time Homebuyers
Property Lab editorial teamPublished Updated 3 min read
Buying your first house in Malaysia? Before you celebrate getting your loan approved, you need to budget for the silent killer of property budgets: closing costs. The biggest of these is Stamp Duty on the Memorandum of Transfer (MOT). The good news is that under Budget 2026, the Malaysian government extended the 100% stamp duty exemption for first-time homebuyers on properties priced up to RM500,000. This exemption applies to both the instrument of transfer and your loan agreement, and it remains valid for Sales and Purchase Agreements (SPA) signed up until December 31, 2027.
Here is exactly how much you can save, and how to calculate your costs if your dream home is over the RM500,000 limit.
How much is stamp duty for first-time buyers?
If you are a Malaysian citizen buying your very first residential property (whether a brand-new project or a sub-sale home) and the property's market value is RM500,000 or below, your stamp duty is RM0.
However, if you purchase a property above RM500,000, you no longer qualify for the full exemption. Previously, there were tiered discounts (like i-Miliki), but as of 2026, those have expired. If your house costs RM520,000, you will be paying the standard progressive rates on the entire amount.
Malaysia's property market offers varied options for first-time buyers.
Understanding the Standard MOT Rates for 2026
If you don't qualify for the RM500,000 exemption, Malaysia's stamp duty is calculated progressively based on the property's purchase price or market value, whichever is higher. The current 2026 tiers for Malaysian citizens are:
- First RM100,0001%
- Next RM400,0002%
- Next RM500,0003%
- Above RM1,000,0004%
Additionally, the stamp duty on your housing loan agreement is a flat 0.5% of your total loan amount.
Stamp Duty Examples by Property Price
Here is what you would pay at different property prices. The first column is for first-time buyers, and the other columns are for everyone else.
| Property price | First-time buyer pays | MOT duty | Loan duty | Total (standard) |
|---|---|---|---|---|
| RM 300,000 | RM 0 | RM 5,000 | RM 1,350 | RM 6,350 |
| RM 400,000 | RM 0 | RM 7,000 | RM 1,800 | RM 8,800 |
| RM 500,000 | RM 0 | RM 9,000 | RM 2,250 | RM 11,250 |
| RM 600,000 | RM 14,700 | RM 12,000 | RM 2,700 | RM 14,700 |
| RM 800,000 | RM 21,600 | RM 18,000 | RM 3,600 | RM 21,600 |
| RM 1,000,000 | RM 28,500 | RM 24,000 | RM 4,500 | RM 28,500 |
| RM 1,500,000 | RM 50,750 | RM 44,000 | RM 6,750 | RM 50,750 |
Based on a 90% loan, a Malaysian citizen, and the 2026 rates above. First-time buyers pay RM0 up to RM500,000. Above that, the standard total applies.
2026 Eligibility Checklist
To claim the 100% exemption, you must meet all the following criteria:
- Never Owned Property: You (and your co-purchaser, if joint) have never owned any residential property, including through inheritance.
- Citizenship: You must be a Malaysian citizen.
- Value Cap: The property's market value must be RM500,000 or below.
- Timeline: The SPA must be signed between January 1, 2021, and December 31, 2027.
Explore First-Home Opportunities
Looking for projects that maximize these government benefits?
Browse Sub-sale: Top Affordable Apartments in Cheras → Browse New Launch: New Developer Projects under RM500k in Selangor →General information only, not legal, tax or investment advice. Rules and rates change; check the official source linked below before you act.
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