Tenancy Agreement Stamp Duty: Rates and Worked Examples
How tenancy agreement stamp duty is calculated under the Stamp Act 1949, the rates by lease term, and worked examples for common monthly rents.
Updated 21 August 2026 · Written and reviewed by Nur Nabilah Binti Mohd Aris
Tenancy stamp duty is calculated on the annual rent above RM2,400, for every RM250 or part of it. The rate is RM1 for a term not exceeding one year, RM2 for over one year up to three years, and RM4 for over three years. For rent of RM1,500 a month over one year, the stamp duty is RM63.
Tenancy stamp duty is far smaller than transfer stamp duty, but it is often misunderstood. It is not a percentage of the rent. It is calculated in blocks, on the annual rent, after deducting the exempt amount.
How it is calculated
The formula has three steps. Take the monthly rent and multiply by twelve to get the annual rent. Deduct the exempt amount. Divide the balance into blocks of RM250, and each block or part of a block is charged at the rate for the lease term.
| Lease term | Duty per RM250 of annual rent |
|---|---|
| Term not exceeding 1 year | RM1 |
| Term exceeding 1 year but not exceeding 3 years | RM2 |
| Term exceeding 3 years or for an indefinite period | RM4 |
Worked examples
The table below shows the stamp duty for common monthly rents, by length of the agreement.
| Monthly rent | 1 year | 2 years | Over 3 years |
|---|---|---|---|
| RM800 | RM29 | RM58 | RM116 |
| RM1,200 | RM48 | RM96 | RM192 |
| RM1,500 | RM63 | RM126 | RM252 |
| RM2,000 | RM87 | RM174 | RM348 |
| RM3,000 | RM135 | RM270 | RM540 |
| RM5,000 | RM231 | RM462 | RM924 |
Take rent of RM1,500 a month for a one-year term. The annual rent is RM18,000. Deduct the RM2,400 exemption, leaving RM15,600. Divided by RM250 that gives 62.4, rounded up to 63 blocks. At RM1 per block, the stamp duty is RM63.
Why the lease term matters
The rate doubles once the term exceeds one year, and doubles again once it exceeds three years. A three-year tenancy at the same rent carries twice the stamp duty of a one-year agreement. This is worth factoring in when deciding the term, though the amounts remain small relative to other costs.
Duplicate copies
A tenancy agreement is normally stamped in one original, with a duplicate for the other party. The duplicate carries a small nominal duty. Your lawyer will handle the stamping of both.
Costs besides stamp duty
Stamp duty is not the only cost in a tenancy:
- Legal fees for preparing or reviewing the tenancy agreement
- Rental deposit and utility deposit paid to the landlord
- Agency administrative charges, where an agent is involved
- The cost of stamping the duplicate copy
Why a tenancy agreement should be stamped
An agreement that is not duly stamped may not be admissible in evidence in civil proceedings until the duty and any penalty are paid. For a landlord who may need to enforce the terms, this matters. The cost of stamping is small against the risk of being unable to rely on your own document.
Commercial leases
Commercial leases follow the same calculation principles, but the terms are usually more complex: renewal clauses, scheduled rent increases, maintenance responsibilities, and permitted use of the premises. The legal cost for a commercial lease reflects that more detailed drafting work.
Frequently asked questions
Who pays the tenancy stamp duty?
It depends on what the agreement provides. Common practice is for the tenant to bear it, but this is negotiable and should be stated clearly in the agreement.
If my rent is below RM200 a month, do I pay stamp duty?
Annual rent of RM2,400 and below falls within the exempt amount, so no duty is charged on that rent. Check the calculation against your actual annual rent.
Does a tenancy agreement have to be registered at the land office?
Short-term tenancies are normally not registered. Leases for longer terms may involve registration, depending on the term and the type of title. Confirm the position for your case.
What happens if I stamp late?
Late stamping can attract a penalty. More importantly, a document that is not duly stamped may not be usable in evidence until the duty and penalty are paid.
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