Transfer Stamp Duty (MOT)
How transfer stamp duty is calculated under the Stamp Act 1949, the rates for citizens and non-citizens, and the exemptions that may apply.
Updated 21 August 2026 · Written and reviewed by Nur Nabilah Binti Mohd Aris
Transfer stamp duty is calculated in tiers: 1% on the first RM100,000, 2% from RM100,001 to RM500,000, 3% from RM500,001 to RM1,000,000, and 4% on the balance above RM1,000,000. For a property at RM500,000 the duty is RM9,000. Non-citizen buyers and foreign companies pay a flat rate of 8%.
Transfer stamp duty, often referred to as MOT, is the duty charged on the instrument transferring property. It is paid by the buyer and calculated in tiers.
Current scale
| Value band | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 to RM500,000 | 2% |
| RM500,001 to RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
| Non-citizen buyer or foreign company, flat rate | 8% |
How the tiered calculation works
The rates apply in tiers, not as a single rate on the whole price. For a property at RM500,000 the calculation is 1% on the first RM100,000 giving RM1,000, then 2% on the next RM400,000 giving RM8,000. The total is RM9,000.
For a property at RM800,000: 1% on RM100,000 giving RM1,000, 2% on RM400,000 giving RM8,000, and 3% on RM300,000 giving RM9,000. The total is RM18,000.
Market value overrides the purchase price
Stamp duty is charged on the market value or the purchase price, whichever is higher. This means that if you buy a property below market value, duty is still assessed on the valuation.
Valuation is carried out by the Valuation and Property Services Department, and it is a common reason why the final figure differs from an early estimate.
The change for non-citizen buyers
From 1 January 2026, non-citizen buyers and foreign owned companies pay transfer stamp duty at a flat rate of 8%, up from 4%. The change was made by amendment to the Stamp Act 1949.
Permanent Residents are not in this category and remain on the same tiered scale as citizens.
Frequently asked questions
Who pays transfer stamp duty?
The buyer. It is paid when the transfer instrument is stamped.
When is stamp duty payable?
Normally within the period prescribed after the instrument is executed. Late payment attracts a penalty.
Can the Inland Revenue Board value the property higher than the purchase price?
Yes. Stamp duty is charged on the market value or the purchase price, whichever is higher. Valuation is carried out by the Valuation and Property Services Department.
What is the rate for foreign buyers?
A flat rate of 8% applies to non-citizen buyers and foreign owned companies under Item 32(ab) of the Stamp Act 1949, as amended by the Finance Act 2025 and in force from 1 January 2026. The previous rate was 4%.
Are Permanent Residents charged 8%?
No. Permanent Residents remain on the tiered citizen scale.
How much is loan agreement stamp duty?
0.5% of the loan amount, separate from the transfer stamp duty.
Is there an exemption for first-time buyers?
There is an exemption for first-time buyers subject to a price cap and conditions in force. Eligibility needs to be checked against your circumstances at the time of the transaction.
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