First-home stamp duty exemption in Malaysia: who qualifies
Figures checked against official sources on
A Malaysian citizen buying a first residential home priced up to RM500,000 is exempt from 100% of the stamp duty on both the transfer (MOT) and the loan agreement, where the sale and purchase agreement is executed between 1 January 2021 and 31 December 2027. On a RM450,000 home with a RM405,000 loan, that saves RM10,025. Homes above RM500,000 get no exemption under the current order.[1],[4],[5]
The exemption in force in 2026
- 100% exemption on the instrument of transfer and on the loan agreement.
- For the purchase of a first residential home priced up to RM500,000.
- For Malaysian citizens.
- For sale and purchase agreements executed from 1 January 2021 to 31 December 2027. Budget 2026 extended the end date from 31 December 2025.
Eligibility turns on the date the sale and purchase agreement is executed; LHDN has confirmed this for SPAs executed from 1 January 2026 to 31 December 2027.[3]
Conditions
LHDN has confirmed that the conditions in the original 2021 exemption orders (P.U. (A) 53/2021 and 54/2021) still apply to the extension. As summarised in the tax professions’ joint memorandum that LHDN answered:[3]
- The buyer named in the SPA makes a statutory declaration that they have never owned a residential property, alone or jointly, including one inherited or received as a gift.
- The RM500,000 limit is measured on the market value of the property.
- A residential property means a house, condominium unit, apartment or flat bought solely as a dwelling house — not a service apartment, SOHO, SOFO or SOVO.
Source[3]
How much it saves
- Stamp duty on the transfer
- RM8,000
- Stamp duty on the loan agreement
- RM2,025
- Less 100% first-home exemption
- − RM10,025
- Stamp duty payable
- RM0
- Stamp duty on the transfer
- RM10,500
- Stamp duty on the loan agreement
- RM2,475
- First-home exemption (price above RM500,000)
- RM0
- Stamp duty payable
- RM12,975
The 75% exemption for RM500,000–RM1 million has ended
A 75% exemption for first homes priced above RM500,000 and up to RM1 million applied only to sale and purchase agreements executed from 1 June 2022 to 31 December 2023. The current position stated in Budget 2027 covers homes up to RM500,000 only.[6],[1]
Budget 2027 proposal: up to RM750,000 from 2027
Budget 2027, tabled on 9 October 2026, proposes a revised exemption for SPAs executed from 1 January 2027 to 31 December 2030: 100% for homes priced up to RM500,000; and for homes priced up to RM750,000, 100% on the first RM500,000 of the price and 50% on the remainder. It is a proposal until the law or exemption order is made, and LHDN has not yet published how the 50% part will be computed.[1]
Frequently asked questions
Is there stamp duty exemption for first-time home buyers in Malaysia in 2026?
Yes. Malaysian citizens buying a first residential home priced up to RM500,000 are 100% exempt from stamp duty on the transfer and the loan agreement, for SPAs executed from 1 January 2021 to 31 December 2027.[1]
Can I get the exemption on a RM600,000 first home?
Not under the order in force now, which stops at RM500,000. Budget 2027 proposes a partial exemption for homes up to RM750,000 for SPAs executed from 1 January 2027, but it is not yet law.[1]
Does a SOHO or service apartment qualify as a first home?
No. Under the conditions LHDN confirmed still apply, a residential property means a house, condominium unit, apartment or flat bought solely as a dwelling house, and excludes service apartments, SOHO, SOFO and SOVO.[3]
I inherited a share of a house. Am I still a first-time buyer?
No. The statutory declaration says the buyer has never owned a residential property, including one obtained by inheritance or gift, whether alone or jointly.[3]
Does the exemption depend on when the MOT or loan is signed?
No — it depends on the date the sale and purchase agreement is executed.[3]
Sources
- Budget 2027 tax measures, 9 October 2026 (proposals until enacted) — Ministry of Finance Malaysia, checked
- Budget 2026 speech (Ucapan Belanjawan 2026), 10 October 2025 — Ministry of Finance Malaysia, checked
- LHDN response to the joint memorandum on Budget 2026 and the 2025 tax bills (11 December 2025) — LHDN, checked
- Garis Panduan Pengenaan Duti Setem bagi Surat Cara yang Tertakluk kepada Jadual Pertama Akta Setem 1949 (30 June 2026) — LHDN, checked
- Stamp Act 1949 (Act 378), updated text as at 1 January 2024 — Attorney General’s Chambers, hosted by LHDN, checked
- Pengecualian duti setem bagi pemilikan rumah pertama (media statement on the 2022–2023 exemptions) — Ministry of Finance Malaysia, checked