Budget 2027 raises the first-home stamp duty exemption ceiling from RM500,000 to RM750,000. First-time Malaysian buyers of a home priced up to RM500,000 will pay no stamp duty on the transfer document or the loan agreement. For a home priced between RM500,001 and RM750,000, the first RM500,000 is fully exempt and the portion above it gets a 50% exemption. The relief is proposed for sale and purchase agreements (SPAs) signed from 1 January 2027 to 31 December 2030.
In practical terms, a first-time buyer of a RM750,000 home would pay RM3,750 in transfer stamp duty instead of RM16,500. The measure appears in paragraph 56 of the Finance Ministry’s Budget 2027 speech, tabled on 9 October 2026, and in Appendix 16 of the accompanying tax measures document.
What changed in Budget 2027 for first-time buyers
Until now, the first-home exemption has been a single threshold. Under the current rule, Malaysian citizens buying their first residential home priced up to RM500,000 receive a 100% exemption on both the memorandum of transfer (MOT) and the loan agreement, for SPAs signed from 1 January 2021 until 31 December 2027. A first home priced even slightly above RM500,000 receives nothing.
Budget 2027 replaces that cliff at RM500,000 with a two-tier structure and moves the end date three years later:
- Up to RM500,000: 100% exemption on the loan agreement and the instrument of transfer.
- RM500,001 to RM750,000: 100% exemption on the first RM500,000 of the price, plus 50% exemption on the balance above RM500,000.
- Window: SPAs executed from 1 January 2027 to 31 December 2030.
The same budget also brings back a full stamp duty exemption for the revival of abandoned housing projects. It covers loan agreements and transfer instruments signed by appointed rescue contractors or developers and by the original purchasers, from 2027 to 2030. The previous version of that relief expired at the end of 2025.
How much stamp duty you save at each price point
The table below applies the standard MOT scale for Malaysian citizens (1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million) to common first-home price points. It compares the full duty, the duty under the current rule, and the duty under the Budget 2027 proposal.
| Home price | Full MOT stamp duty | Current rule (SPA to end-2027) | Budget 2027 proposal (SPA 2027–2030) | Saving vs full duty |
|---|---|---|---|---|
| RM300,000 | RM5,000 | RM0 | RM0 | RM5,000 |
| RM400,000 | RM7,000 | RM0 | RM0 | RM7,000 |
| RM500,000 | RM9,000 | RM0 | RM0 | RM9,000 |
| RM600,000 | RM12,000 | RM12,000 | RM1,500 | RM10,500 |
| RM650,000 | RM13,500 | RM13,500 | RM2,250 | RM11,250 |
| RM700,000 | RM15,000 | RM15,000 | RM3,000 | RM12,000 |
| RM750,000 | RM16,500 | RM16,500 | RM3,750 | RM12,750 |
| RM760,000 | RM16,800 | RM16,800 | RM16,800 | RM0 |
| RM800,000 | RM18,000 | RM18,000 | RM18,000 | RM0 |
These figures cover the transfer document only. The loan agreement attracts a separate duty of 0.5% of the amount borrowed. For a RM500,000 home with a 90% loan of RM450,000, that loan duty is RM2,250, and it is fully waived under both the current and proposed rules. For homes between RM500,001 and RM750,000, the Finance Ministry has not yet published how the 50% portion will be applied to the loan agreement, so the loan-side saving in that band should be confirmed once the gazette order is issued.
The RM750,000 cliff and why price matters
The new structure removes the cliff at RM500,000 but creates a new one at RM750,000. A first home priced at RM750,000 pays RM3,750 in transfer duty under the proposal. A first home priced at RM760,000 falls outside the scheme and pays the full RM16,800, a difference of RM13,050 for a RM10,000 difference in price.
For buyers comparing two units on either side of RM750,000, the stamp duty gap should be part of the comparison. On a new launch, the figure that counts is the SPA price, so it is worth confirming the final SPA price rather than the advertised starting price. Our guide to stamp duty and legal fees in Malaysia explains how the full set of upfront costs is calculated.
SPA timing: 2026 versus 2027
Eligibility is decided by the date the SPA is executed, not the booking date. This has different effects depending on price:
- First homes up to RM500,000: covered whether the SPA is signed in 2026 (current rule) or from 2027 to 2030 (proposal). Timing makes no difference.
- First homes between RM500,001 and RM750,000: an SPA signed in 2026 receives no relief under the current rule. An SPA signed on or after 1 January 2027 would qualify for the partial exemption, provided the proposal is enacted as announced.
- First homes above RM750,000: no relief under either rule.
For new launches, the SPA is usually signed a few weeks after booking, which means a unit booked in late December 2026 may still have its SPA executed in January 2027. Buyers in this position should check the SPA date with the developer and lawyer rather than relying on the booking date. Our article on how to buy a new launch property in Malaysia walks through the booking-to-SPA sequence.
Other Budget 2027 housing measures
The stamp duty change sits alongside several other housing items in the budget speech:
- SJKP financing guarantees of up to RM20 billion through Syarikat Jaminan Kredit Perumahan, aimed at about 80,000 first-time buyers, particularly self-employed people without a fixed monthly income who often struggle to get loan approval.
- Nearly RM1 billion for public housing under Rumah Mesra Rakyat and Program Residensi Rakyat, with four new projects planned in Kulai (Johor), Nilai (Negeri Sembilan), Paya Rumput (Melaka) and Lembah Pertang (Terengganu).
- Bandar MADANI Bukit Jalil, a public residential township with amenities including a vertical school, with phase 1 registration opening on 12 October 2026.
- At least 2,500 Rumah MADANI units in Belfield, Kuala Lumpur, on nearly 11 acres of government land.
- RM270 million in financing from BSN and Agrobank for gig workers who want to start a business or buy a first home.
For buyers with irregular income, the SJKP guarantee may matter as much as the stamp duty relief, since loan approval is often the harder hurdle. Recent data on home loan approval rates in Malaysia shows how much of a filter financing has become. Civil servants can also compare the separate LPPSA financing limit of up to RM1 million.
What the industry said
The Real Estate and Housing Developers’ Association (Rehda) welcomed the expanded exemption as a way to reduce upfront costs for first-time buyers. The association also asked the government to keep reviewing the threshold against market prices and to consider extending relief to homes priced up to RM1 million. It repeated its call to bring back a Home Ownership Campaign focused on completed unsold units and to review federal and state development charges, which it says continue to push up construction costs.
Those requests are not part of Budget 2027. As announced, the ceiling is RM750,000 and the relief is limited to first homes bought by Malaysian citizens.
What first-time buyers should do now
- Check your SPA price against the two thresholds. RM500,000 and RM750,000 are the numbers that decide whether you pay nothing, a reduced amount, or the full scale.
- Confirm the SPA execution date. For homes between RM500,001 and RM750,000, signing in 2027 rather than late 2026 could save several thousand ringgit, if the proposal becomes law as announced.
- Treat it as a proposal until gazetted. Budget measures are implemented through the Finance Bill and stamp duty exemption orders. The final wording can still change.
- Compare all upfront costs, not just stamp duty. Legal fees, the down payment and loan approval still apply. Our comparison of new launch versus subsale sets out where these costs differ.
Buyers browsing first homes in the RM500,000 to RM750,000 range can start with area pages such as Bukit Jalil, Johor Bahru, Ipoh and Bukit Mertajam, or the full list of new launch properties. For Johor buyers, our analysis of Johor’s housing supply to 2030 adds context on how much new stock is coming. Earlier housing policy changes this year are covered in our summary of KPKT housing measures.
Frequently Asked Questions
How much stamp duty does a first-time buyer save under Budget 2027?
On the transfer document, a first-time buyer of a RM500,000 home saves the full RM9,000, and a buyer of a RM750,000 home pays RM3,750 instead of RM16,500, a saving of RM12,750. The loan agreement duty of 0.5% of the loan is also waived in full for homes up to RM500,000.
Is the RM750,000 first-home stamp duty exemption already in force?
Not yet. It is a Budget 2027 proposal that applies to sale and purchase agreements signed from 1 January 2027 to 31 December 2030, and it still has to be legislated and gazetted before stamp offices apply it.
Does the exemption apply to a RM800,000 first home?
No. The proposal only covers first homes priced up to RM750,000, so a RM800,000 first home pays the normal scale of RM18,000 on the transfer document with no relief.
Which date decides whether I qualify, booking date or SPA date?
The sale and purchase agreement execution date decides it. Booking fees and registration dates do not count, which matters for new launches where the SPA is usually signed a few weeks after booking.
What happens to the current RM500,000 first-home exemption?
The current exemption covers first homes up to RM500,000 for SPAs signed from 2021 until 31 December 2027. The Budget 2027 proposal keeps full relief at that level and extends it to SPAs signed until the end of 2030, so buyers at or below RM500,000 stay covered either way.
Who qualifies for the first-home stamp duty exemption in Malaysia?
The exemption is for Malaysian citizens buying their first residential home. Permanent residents and foreigners are not covered, and buyers who already own a residential property in Malaysia do not qualify.