First-Home Stamp Duty Exemption Malaysia: Full and Partial, Explained

Buying your first home in Malaysia? You could pay zero stamp duty on both the transfer document and the loan agreement, provided your property is priced at or below RM500,000. That exemption has been officially extended until 31 December 2027 under Budget 2026. If your property costs more than RM500,000, the full standard rates apply, because the partial exemption that once existed for properties up to RM1 million has already expired.

This guide breaks down exactly how the exemption works, what it saves you, and what happens outside the threshold.

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What is stamp duty on a property purchase?

Stamp duty is a government tax charged on legal documents that transfer ownership or create a financial obligation. When you buy a property in Malaysia, two instruments attract stamp duty:

1. Memorandum of Transfer (MOT) / Instrument of Transfer - the document that formally moves ownership from seller to buyer.
2. Loan Agreement - the contract between you and the bank for your housing loan.

Both are assessed and stamped by LHDN (Inland Revenue Board of Malaysia). You cannot register ownership at the land office until the MOT is properly stamped.

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Standard stamp duty rates (no exemption)

Before applying any exemption, it helps to know the baseline progressive rates for the MOT, as set by LHDN.

MOT (Memorandum of Transfer) rates

Purchase price band	Stamp duty rate
First RM100,000	1%
RM100,001 to RM500,000	2%
RM500,001 to RM1,000,000	3%
Above RM1,000,000	4%

Example on a RM450,000 home (no exemption):

• 1% on RM100,000 = RM1,000
• 2% on RM350,000 = RM7,000
• Total MOT stamp duty = RM8,000

Loan agreement stamp duty

The housing loan agreement attracts stamp duty at a flat 0.5% of the total loan amount, regardless of property price. On a RM360,000 loan, that is RM1,800. These two costs together can reach tens of thousands of ringgit. The first-home exemption eliminates both for qualifying buyers.

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The first-home stamp duty exemption: what you actually get

Full exemption: property priced at RM500,000 and below

Malaysian citizens buying their first residential property priced at RM500,000 or below receive a 100% exemption on both instruments:

• MOT stamp duty: fully waived
• Loan agreement stamp duty: fully waived

This means the stamp duty cost is RM0 for a qualifying purchase. The exemption was most recently extended through Budget 2026 (announced October 2025) and remains in force until 31 December 2027, as confirmed by the Ministry of Finance Malaysia.

Savings on a RM480,000 home (90% loan):

Cost item	Without exemption	With exemption
MOT stamp duty	RM7,600	RM0
Loan agreement stamp duty (RM432,000 loan)	RM2,160	RM0
Total saving		RM9,760

Partial exemption: RM500,001 to RM1,000,000 (EXPIRED)

You may have read about a 75% partial stamp duty exemption for properties between RM500,001 and RM1,000,000. This came under the i-Miliki (Home Ownership Initiative) programme, which ran from May 2022. That partial exemption expired on 31 December 2023 and has not been renewed.

As of 2024 onwards, there is no partial exemption available for first-home buyers in this price band. Full standard rates apply.

What this means practically: A first-home buyer purchasing a RM750,000 condominium today pays the same stamp duty as any other buyer, with no relief.

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Who qualifies for the exemption?

The full exemption for properties up to RM500,000 is subject to these conditions (based on LHDN guidelines and MOF announcements):

• You must be a Malaysian citizen
• This must be your first residential property purchase (you have never previously held ownership in any residential property)
• The property must be residential in nature (not commercial)
• The property price or market value must not exceed RM500,000
• The Sale and Purchase Agreement (SPA) must be executed during the qualifying period (currently up to 31 December 2027)

If you co-purchase with a spouse who also has never owned property, both parties qualify and the exemption still applies.

What disqualifies you: having previously owned any residential property (even if sold), the property carrying a commercial title, or the price exceeding RM500,000.

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How to apply: the process

You do not file a separate exemption application with LHDN. The process is handled through your solicitor:

1. Your lawyer prepares the MOT and loan agreement documents.
2. The documents are submitted to LHDN through the Stamp Duty Self-Assessment System (SDSAS), which LHDN introduced in 2026 for property transactions.
3. Your solicitor declares first-time buyer status on the stamping submission.
4. LHDN assesses and issues the stamp certificate with RM0 duty (full exemption) or the applicable rate.
5. The stamped MOT is then presented to the land office for registration.

Your solicitor typically handles this end to end. However, it is your responsibility to ensure the declaration of first-time buyer status is accurate. A false declaration is a serious offence under the Stamp Act 1949.

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Practical cost comparison across price bands

Here is how stamp duty costs look at various property prices under current rules (as of 2026):

Property price	Buyer status	MOT stamp duty	Loan stamp duty (90% loan)	Total stamp duty
RM300,000	First-home	RM0	RM0	RM0
RM450,000	First-home	RM0	RM0	RM0
RM500,000	First-home	RM0	RM0	RM0
RM550,000	First-home	RM11,500	RM2,475	RM13,975
RM750,000	First-home	RM18,500	RM3,375	RM21,875
RM1,000,000	First-home	RM28,000	RM4,500	RM32,500

Note: MOT stamp duty calculated on purchase price; loan stamp duty calculated on 90% loan amount at 0.5%.

The RM500,000 threshold creates a sharp cliff. A buyer at RM499,000 pays nothing; a buyer at RM501,000 pays over RM13,000. This is worth factoring into your offer price if you are negotiating near the boundary.

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Relationship to other first-home schemes

The stamp duty exemption works alongside other programmes. MyHome, PR1MA, and RUMAWIP provide subsidised prices, but stamp duty eligibility still depends on the final transacted price. The My First Home Scheme (SRP) for buyers earning under RM5,000 monthly can also benefit from the exemption if the property is under RM500,000. EPF Account 2 withdrawals cover legal fees but not stamp duty directly, though that is a moot point if your duty is RM0.

For a broader look at government housing aid, see our guide on government housing schemes for Malaysians and our article on what happens after paying the booking fee.

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Key takeaways

• Full exemption (100%) applies to MOT and loan agreement stamp duty for first-home buyers purchasing residential property at RM500,000 or below, valid until 31 December 2027.
• The partial 75% exemption for properties between RM500,001 and RM1,000,000 (the i-Miliki programme benefit) expired on 31 December 2023 and has not been extended.
• Above RM500,000, standard progressive MOT rates (1% to 4%) and 0.5% loan agreement stamp duty apply in full, with no first-home relief.
• The RM500,000 cutoff is a hard line. There is no pro-rating: if your SPA price is RM500,001, you lose the entire exemption.
• Your solicitor handles the LHDN stamping process. You must truthfully declare first-time buyer status.
• Being a citizen and never having held residential property ownership are both required conditions.

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Frequently asked questions

Q: If my spouse previously owned a property but I have never owned one, do I still qualify?

A: No. Because this is a joint purchase, both co-buyers must be first-time buyers for the full exemption to apply. If your spouse previously owned residential property, the exemption does not apply to the transaction. You may wish to structure the purchase under your name alone if that is practical and your solicitor advises it. Always seek legal advice specific to your situation.

Q: Does the exemption apply to auction properties or subsale properties?

A: Yes. The exemption applies based on the nature of the transaction (first residential property purchase by a Malaysian citizen under RM500,000), not whether it is a new project or subsale. The exemption covers auction purchases as well, provided the winning bid price does not exceed RM500,000 and you are a first-time buyer.

Q: I am buying a SOHO or serviced apartment. Does the exemption apply?

A: It depends on the land title. Properties with residential title qualify. Many SOHO and serviced apartment units carry commercial or mixed titles. LHDN assesses based on the title type, not the physical appearance of the unit. Confirm the title category with your solicitor before assuming the exemption applies.

Q: The property is RM490,000 but my loan amount is RM441,000. Is the loan stamp duty also waived?

A: Yes. If the SPA price is RM490,000 and you are a qualifying first-time buyer, both the MOT stamp duty and the loan agreement stamp duty are fully waived, regardless of the loan amount (as long as the loan is for the same qualifying property).

Q: When does the current exemption expire, and what happens then?

A: The current first-home buyer stamp duty exemption for properties up to RM500,000 runs until 31 December 2027, as confirmed under Budget 2026 by the Ministry of Finance Malaysia. After that date, the exemption could be renewed, modified, or allowed to lapse. Budget decisions are made annually in October. If you are close to the end of the window, your SPA execution date (not the property completion date) determines eligibility.

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Figures and rules current as at June 2026. Stamp duty legislation is set by the Stamp Act 1949 and amended via annual Finance Acts. Confirm the latest rates and exemption status with LHDN or a licensed solicitor before signing any SPA.