Budget 2027 Stamp Duty for First Homes: What You Could Save

By FinDoctor Editorial Team · Last updated 3 Nov 2026

Key takeaways

• Up to RM500,000: 100% stamp duty exemption on the transfer (MOT) and the loan agreement. This already exists today; Budget 2027 extends it to 2030.
• RM500,001 to RM750,000 (new): first RM500,000 fully exempt, 50% exemption on the rest.
• Status: a Ministry of Finance (MOF) proposal. It becomes law only when the exemption orders are gazetted. As of 3 Nov 2026, no new order has been published.
• Not covered: legal fees, 8% service tax and disbursements.

Want your own figures? Try the FinDoctor Legal Fee, Stamp Duty & Valuation Fee Calculator.

How much stamp duty do first-time buyers pay under Budget 2027?

According to the Ministry of Finance Budget 2027 Tax Measures (Appendix 16, 9 Oct 2026), the first-home stamp duty exemption is proposed as follows:

First home price	Today (SPAs signed to 31 Dec 2027)	Budget 2027 proposal (SPAs signed 2027–2030)
Up to RM500,000	100% exempt	100% exempt
RM500,001 to RM750,000	No exemption	100% on first RM500,000, 50% on the balance
Above RM750,000	No exemption	No relief stated by MOF

The relief applies to both documents a buyer stamps: the instrument of transfer (memorandum of transfer, or MOT) and the loan agreement.

Is the Budget 2027 stamp duty exemption already in force?

Not yet. Stamp duty exemptions take effect through orders made under the Stamp Act 1949 and published in the Federal Gazette. As of 3 Nov 2026, the orders for the 2027–2030 relief have not been gazetted, so the details may still change.

Until then, the current gazetted orders apply. They give a 100% exemption on first homes up to RM500,000 for SPAs signed from 1 Jan 2021 to 31 Dec 2027 (P.U. (A) 53/2021 and 54/2021, as amended by P.U. (A) 448/2025 and 449/2025, per Malaysian Bar Circular No 128/2026).

Who qualifies for the first-home stamp duty exemption?

Under the current orders, you must:

• Be a Malaysian citizen buying one unit of residential property.
• Never have owned residential property, including property inherited or received as a gift, held alone or jointly.
• For the loan agreement, borrow from an eligible lender, such as a licensed bank, Islamic bank, development financial institution, insurer, takaful operator, co-operative or employer housing loan scheme.

LHDN’s statutory declaration templates for the current exemption exclude SOHO, SOFO and SOVO units and service apartments.

MOF’s Budget 2027 papers describe the new relief as a revision of the same first-home exemption for Malaysian citizens. They do not yet confirm whether every condition above carries over, or how property type and subsale purchases will be treated. Check the gazetted order, or ask your lawyer, before you sign.

How is stamp duty on a house calculated in Malaysia?

Stamp duty on the transfer (MOT)

The Lembaga Hasil Dalam Negeri (LHDN) scale under Item 32(a), First Schedule, Stamp Act 1949 applies to the higher of the price or market value (LHDN):

Portion of value	Rate
First RM100,000	1%
RM100,001 to RM500,000	2%
RM500,001 to RM1,000,000	3%
Above RM1,000,000	4%

Stamp duty on the loan agreement

For a ringgit home loan, stamp duty is 0.5% of the loan amount.

Legal fees (not covered by the exemption)

Under the Solicitors’ Remuneration Order 2023, the scale fee for an SPA or loan agreement is 1.25% on the first RM500,000 and 1% on the next RM7 million. A lawyer may discount up to 25%, and a lower scale applies to purchases from developers. You also pay 8% service tax and disbursements.

How much can a first-time buyer save? Worked examples

These examples assume an eligible first-time buyer, a 90% loan, and an SPA signed between 1 Jan 2027 and 31 Dec 2030. Legal fees are at the full scale, before discounts, service tax or disbursements.

Item	RM300,000 home	RM500,000 home	RM700,000 home
Loan amount (90%)	RM270,000	RM450,000	RM630,000
MOT stamp duty, no exemption	RM5,000	RM9,000	RM15,000
MOT stamp duty, first-time buyer	RM0	RM0	RM3,000
Loan stamp duty, no exemption	RM1,350	RM2,250	RM3,150
Loan stamp duty, first-time buyer	RM0	RM0	Partly exempt (see below)
Total stamp duty saved	RM6,350	RM11,250	RM12,000 to RM15,150
SPA legal fee (not exempt)	RM3,750	RM6,250	RM8,250
Loan legal fee (not exempt)	RM3,375	RM5,625	RM7,550

Why the RM700,000 example is a range

On the transfer, the maths is clear. The first RM500,000 is exempt (saving RM9,000). The remaining RM200,000 is charged at 3%, which is RM6,000, and half of that is exempt. So you pay RM3,000 instead of RM15,000.

The loan agreement is less clear. MOF says it is also covered, but has not said how the 50% tier applies to a loan. Until the order is gazetted, plan for loan stamp duty of anywhere between RM0 and RM3,150. That puts the total stamp duty on this home at RM3,000 to RM6,150, compared with RM18,150 without the exemption.

Should I sign my SPA in 2026 or wait until 2027?

• First home up to RM500,000: it makes no difference. You are exempt either way, if you qualify.
• First home RM500,001 to RM750,000: timing matters. An SPA signed in 2026 gets no first-home exemption. One signed from 1 Jan 2027 could get the new 50% tier, if it is gazetted as proposed. Check the date with your lawyer.

What does Budget 2027 not change?

• Legal fee scales and stamp duty rates stay the same.
• Buyers who already own a home get no first-home relief.
• You still need cash for the down payment, legal fees, service tax, disbursements and valuation.

Budget 2027 also provides up to RM20 billion in housing financing guarantees through the Housing Credit Guarantee Scheme (SJKP), aimed at about 80,000 first-time buyers, especially the self-employed (PropertyGuru, 28 Oct 2026).

Before you sign: check you can get the loan

The exemption only helps if your loan is approved. Banks look at your debt service ratio (DSR) and your CCRIS and CTOS records.

1. Work out your costs with the Legal Fee, Stamp Duty & Valuation Fee Calculator.
2. Check your DSR with the Loan & DSR Calculator.
3. Know your credit standing: a FinDoctor Pro Report gives loan eligibility guidance across the top 20 banks.
4. Compare and get help: see home loan options or book a FinDoctor Pro Advisory session.

Frequently asked questions

Is the Budget 2027 first-home stamp duty exemption law yet?

No. As of 3 Nov 2026 it is a Budget 2027 proposal, tabled on 9 Oct 2026, for SPAs signed from 1 Jan 2027 to 31 Dec 2030. It takes effect only when the exemption orders are gazetted.

I am buying a RM450,000 first home in 2026. Do I pay stamp duty?

No, if you qualify. The current gazetted orders already give Malaysian first-time buyers a 100% stamp duty exemption on the transfer and loan agreement for homes up to RM500,000, for SPAs signed until 31 Dec 2027.

How much stamp duty is saved on a RM700,000 first home under Budget 2027?

About RM12,000 on the transfer: you would pay RM3,000 instead of RM15,000. The loan agreement is also partly exempt, but MOF has not said how, so total stamp duty could be RM3,000 to RM6,150 instead of RM18,150.

Does the first-home exemption cover legal fees?

No. It covers stamp duty on the transfer and the loan agreement only. Legal fees, 8% service tax and disbursements still apply.

Is there any relief for a first home above RM750,000?

MOF’s Budget 2027 proposal covers first homes priced up to RM750,000 and states no relief above that, so normal stamp duty rates would apply.

Can I qualify if I inherited a house before?

Not under the current orders. You must never have owned residential property, including property inherited or received as a gift, whether held alone or jointly.

This is general information, not financial, legal or tax advice. Confirm the final rules and your own figures with your lawyer and bank before you sign.

Sources

• Ministry of Finance Malaysia, Budget 2027 Tax Measures, Appendix 16 (9 Oct 2026)
• Malaysian Bar, Circular No 128/2026 on the Stamp Duty (Exemption) Orders 2021 (Amendment) 2025 (16 Apr 2026)
• LHDN, stamp duty rates, Item 32(a), First Schedule, Stamp Act 1949
• PwC Malaysia, Malaysian Tax Booklet 2026/2027: Stamp duty (loan agreement 0.5%)
• Malaysian Bar, Solicitors’ Remuneration Order 2023 (Circular No 185/2023)
• Malay Mail, "Budget 2027: Stamp duty exemption proposed for first homes up to RM500,000" (9 Oct 2026)
• PropertyGuru, "Budget 2027 and the First Home" (28 Oct 2026)