Stamp Duty on Property Purchase: Rates & How to Calculate

Introduction

When you buy or transfer property title, you deal with stamp duty — a tax on instruments, not on the transaction itself. This article explains stamp duty rates for property title transfers, the official calculation example, and the new self-assessment system from 2026.

Basic principles

Stamp duty is imposed on instruments; dutiable instruments are listed in the First Schedule of the Stamp Act 1949 (SA 1949), and the persons liable to pay are listed in Schedule 3 of SA 1949 — R1.

Ad valorem duty is imposed on instruments of transfer (by sale or gift) of real property including marketable securities — R1.

Rates and official calculation example

HASiL provides an official calculation example using Form 14A KTN (title transfer) for a value of RM500,000 — R3:

• RM1.00 for every RM100 for the first RM100,000 = RM1,000;
• RM2.00 for every RM100 for the next RM400,000 = RM8,000;
• Total duty = RM9,000.

Stamp Duty Self-Assessment System (STSDS)

STSDS came into effect on 1 January 2026 — assessment is deemed through a self-assessment system (paragraph 36(1)(a) SA 1949) — R3.

Exemptions and reliefs

Late stamping penalty

Frequently Asked Questions (FAQ)

Q. What is stamp duty? A. A tax on instruments (not the transaction), imposed according to the First Schedule of SA 1949.

Q. Who pays stamp duty? A. The persons liable to pay are listed in Schedule 3 of SA 1949.

Q. What is the duty for a house worth RM500,000? A. Per HASiL's official example: RM9,000 (RM1,000 for the first RM100,000 + RM8,000 for the next RM400,000).

Q. When did the self-assessment system start? A. STSDS started on 1 January 2026.

Glossary

• Ad valorem — by value; duty computed based on the instrument's value.
• Instrument — a written document subject to duty (e.g. Form 14A KTN).
• STSDS — Stamp Duty Self-Assessment System.
• SA 1949 — Stamp Act 1949.
• KTN — National Land Code.