How to Calculate Stamp Duty on a Home: MOT & Loan

Stamp duty is one of the largest costs of buying a home after the down payment. It is also one of the most often miscalculated, because the rates are tiered and there is an exemption for first-time buyers.

This guide explains the two documents that attract duty, how to calculate it step by step, who is exempt, and how duty is paid to the Inland Revenue Board (LHDN).

General information only, not legal or tax advice. All calculations are estimates only; the actual amount is assessed by LHDN and confirmed by your lawyer.

The two documents that attract stamp duty

When you buy a home with a loan, two main documents are charged duty under the Stamp Act 1949:

• The instrument of transfer, often called the MOT (memorandum of transfer). This document transfers the title into your name. Duty is tiered on the purchase price or market value, whichever is higher.
• The loan agreement with the bank. Duty is 0.5% of the loan amount, for a term loan with an ascertainable repayment amount, which is the usual kind of home loan.

Other documents in the transaction, such as the SPA, may attract much smaller duty; ask your lawyer. This guide focuses on the two documents above because that is where the largest cost lies.

MOT stamp duty rates

LHDN’s guideline states these rates as RM1, RM2, RM3 and RM4 for every RM100 or part thereof. So a value that is not a round RM100 is rounded up for the calculation.

How to calculate, step by step

1. Fix the value Take the purchase price or the market value, whichever is higher.
2. Split it into tiers The first RM100,000, then the balance up to RM500,000, and so on.
3. Multiply each portion by its rate and add them up. That is the MOT duty.
4. Work out the loan duty Loan amount × 0.5%.
5. Check the exemption If you are an eligible first-time buyer and the home is valued at no more than RM500,000, both duties are exempt.

Worked examples

If your loan also finances insurance (MRTA or MRTT) or legal fees, the loan amount is larger, so the loan agreement duty also rises slightly. To estimate how much you may be able to borrow, use the eligibility calculator (estimate only).

The first-time buyer exemption

Under P.U.(A) 53/2021 and P.U.(A) 54/2021, as amended by P.U.(A) 448/2025 and P.U.(A) 449/2025, Malaysian first-time buyers are fully exempt from stamp duty on the instrument of transfer and the loan agreement if:

• the home is one residential unit valued at no more than RM500,000;
• the SPA is signed from 1 January 2021 to 31 December 2027;
• you have never owned a residential property, including one obtained by inheritance or gift, whether alone or jointly.

The exemption is claimed through a statutory declaration when the documents are stamped, usually by your lawyer. The full conditions, the SOHO and serviced apartment issue, and savings examples are in our article First-Home Incentives: What to Check and on the First Home page.

When and how stamp duty is paid

• Deadline: Section 47 of the Stamp Act 1949 requires an instrument signed in Malaysia to be stamped within 30 days of signing. Section 47A imposes a penalty for late stamping.
• Who handles it: The lawyer who prepares the transfer and loan documents usually submits them to LHDN and collects the duty from you. Check in the SPA and the loan offer letter who bears these costs; usually the buyer.
• LHDN’s system: Stamping is done online. LHDN is introducing the Stamp Duty Self-Assessment System (STSDS) through the MyTax portal in phases: Phase 1 from 1 January 2026 covers security instruments (including loan agreements), tenancies and general stamping; Phase 2 from 1 January 2027 covers transfers of real property that do not involve a JPPH valuation; Phase 3 from 1 January 2028 covers the remaining instruments.
• Records: Under STSDS, the stamped instrument and related records must be kept for 7 years from the date the duty was paid.

For a new home from a developer, the MOT is sometimes signed later than the SPA, depending on the status of the title. Ask your lawyer when each document will be signed so you know when the money is needed.

Planning your cash: a complete example

The lesson: confirm your “first home” status honestly before you budget, especially if your name was ever on an inherited title.

Questions to ask your lawyer

• Will MOT duty be calculated on the purchase price, or might a valuation put the market value higher?
• When will the MOT and loan agreement be signed, and when is the duty due?
• Do I qualify for the first-home exemption, and what documents are needed for the statutory declaration?
• Does the loan amount include insurance or legal fees, and what is the estimated loan agreement duty?
• Who bears the stamp duty under the SPA and the loan offer letter?

Common mistakes

• Calculating on the price only. If the market value is higher, duty is calculated on the market value.
• Applying 2% to the whole price. The rates are tiered: the first RM100,000 is only 1%.
• Forgetting the loan agreement duty. 0.5% looks small, but on a RM400,000 loan it is RM2,000 (estimate only).
• Assuming the exemption is automatic. It must be claimed, and the “never owned a home” condition includes inherited homes.
• Mixing up the SPA date and the MOT date. The first-home exemption follows the date the SPA is signed.

Next steps

Stamp duty is only one part of the cash you need to prepare. See the full list in the costs of buying a new home, check your loan eligibility before buying your first home, and make sure your CCRIS and CTOS records are clean. If your income is irregular, read our SJKP guide. If you are interested in a RumahHQ Development Sdn Bhd project, register your interest for free with no obligation.