MOT Stamp Duty Explained (Tiered Rates)
MOT stamp duty uses a tiered scale. Here is how the bands work and a worked example, with a reminder to verify current rates.
Quick answer
MOT stamp duty is charged on a tiered scale of the property price or market value. A common Malaysian-citizen scale is 1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000, and 4% above RM1,000,000. For example, a RM750,000 property gives RM1,000 + RM8,000 + RM7,500 = RM16,500. Always verify the latest rates with LHDN / MyTax e-Duti Setem.
Key takeaways
- The rate is tiered — each band has its own percentage.
- Seed scale: 1% / 2% / 3% / 4% across the bands.
- A RM750,000 home gives about RM16,500 on this scale.
- Foreigner / company treatment can differ — verify separately.
The seed bands
- First RM100,000: 1%.
- RM100,001 to RM500,000: 2%.
- RM500,001 to RM1,000,000: 3%.
- Above RM1,000,000: 4%.
Worked example
For RM750,000: RM100,000 x 1% = RM1,000; RM400,000 x 2% = RM8,000; RM250,000 x 3% = RM7,500; total RM16,500. A RM1.5m property works out to RM44,000 on the same scale.
Checklist
- Apply each band's rate to the right slice of the price.
- Check whether a first-home exemption applies.
- Verify the current rates and any surcharge with LHDN.
Watch out for
- These bands are a seed reference — confirm the current rates with LHDN.
- Do not assume foreigner or company rates match the citizen scale.
Frequently asked questions
How is MOT stamp duty calculated?
Each price band has its own rate (a seed scale of 1%/2%/3%/4%). You add up the duty from each band. Verify current rates with LHDN / MyTax e-Duti Setem.
Can I use an online calculator?
Yes, for planning. But treat it as an estimate and confirm the final figure with your lawyer and LHDN / MyTax e-Duti Setem.
Related guides
What Is MOT (Memorandum of Transfer)?
MOT is the document that legally moves a property's title into your name. Here is what it is and how it differs from the SPA.
Read guideFirst-Home Buyer Stamp Duty Exemption
Eligible first-home buyers may get a stamp duty exemption up to a price cap. Here is the seed rule and how to confirm it.
Read guideMOT Calculator: What to Enter
Getting a useful MOT estimate depends on entering the right figures. Here is what each input means.
Read guideImportant
This content is for general education only. It is not legal, financial, banking, valuation, tax, investment, or property advice. Always verify with the relevant bank, lawyer, valuer, agent, developer, auctioneer, land office, LPPSA, LHDN, or authority before making decisions.
Last reviewed: 2026 edition · Rules, rates and fees change over time. Always confirm the latest figures with the relevant authority before you act.