Tenancy stamp duty is one of the smallest costs in Malaysian property and one of the most commonly skipped. It's often under RM200. Nobody budgets for it, plenty of landlords and tenants shake hands without it, and the agreement sits in a drawer unstamped.
That's fine right up until it isn't. An unstamped tenancy agreement can't be used as evidence in court, which is exactly where you need it when a deposit dispute or an eviction turns ugly. This guide covers what tenancy stamp duty costs in Malaysia, who pays it, when it's due, and how to get your number in seconds with PropGo's Tenancy Stamp Duty Calculator.
What is tenancy stamp duty and why does it matter?
Stamp duty on a tenancy agreement is a tax collected by LHDN under Item 49(a) of the First Schedule to the Stamp Act 1949. Paying it stamps the document, and stamping is what makes the agreement admissible as evidence in a Malaysian court.
Think of it as insurance priced at a couple of hundred ringgit. You're paying for the ability to enforce your own contract. If the tenancy runs smoothly, you never think about it again. If it doesn't, the stamp is the difference between having an enforceable agreement and having a piece of paper.
What are the current rates and what changed?
Duty is charged on the annual rent, at a rate that rises with the length of the tenancy. It's calculated per RM250 of annual rent, or part thereof, which means any leftover amount rounds up to a full RM250 block.
Tenancy period | Rate per RM250 of annual rent |
|---|---|
Not exceeding 1 year | RM1 |
Exceeding 1 year, up to 3 years | RM3 |
Exceeding 3 years, up to 5 years | RM5 |
Exceeding 5 years | RM7 |
Two things to know that trip people up:
The RM2,400 exemption is gone. For years, the first RM2,400 of annual rent was exempt, and a lot of guides and calculators still online apply it. It was removed with effect from 1 January 2025 under the Finance Act 2024. Duty is now charged on the full annual rent from the first ringgit.
Minimum duty is RM10. Very low rents still attract the floor amount.
You'll also usually pay a small duty on each duplicate copy of the agreement, plus whatever the agent or lawyer charges to prepare it. Those preparation fees are a commercial charge, not a government one, and they vary between firms.
How is tenancy stamp duty calculated in practice?
A one-year tenancy at RM2,000 a month:
Annual rent: RM24,000.
Blocks of RM250: 24,000 ?? 250 = 96.
Rate for one year or less: RM1.
Stamp duty: 96 ?? RM1 = RM96.
A two-year tenancy at RM1,500 a month:
Annual rent: RM18,000.
Blocks of RM250: 18,000 ?? 250 = 72.
Rate for one to three years: RM3.
Stamp duty: 72 ?? RM3 = RM216.
Notice what happened there. The second tenancy has lower rent but costs more than double to stamp, purely because it runs longer. That's the single most useful thing to understand about this duty: the tenure band matters more than the rent. Stretching a tenancy from 12 months to 13 moves you into the next band and triples the rate.
Who pays tenancy stamp duty and by when?
The tenant customarily pays the stamp duty in Malaysia, along with the agreement preparation fee. It's a convention rather than a statutory rule, so it can be negotiated and should be written into the agreement so nobody argues later.
The deadline is 30 days from the date the agreement is signed if it's executed in Malaysia. Miss it and LHDN can impose a penalty on top of the duty. Since 1 January 2026, stamping is handled through the e-Duti Setem portal on MyTax, so the process is online rather than a counter visit.
How to use PropGo's Tenancy Stamp Duty Calculator
Open the Tenancy Stamp Duty Calculator.
Enter the monthly rent exactly as it appears in the agreement.
Enter the tenancy period in months or years.
Read your estimated stamp duty.
If you're still negotiating, run it twice, once at 12 months and once at 24. Seeing RM96 next to RM216 makes the cost of the longer commitment concrete, and it's worth weighing against the security a longer tenancy gives you.
What should landlords compare with the duty?
Stamp duty is a minor line item, but it belongs in the same view as everything else about the property:
Work out what the unit actually returns with the Rental Yield Calculator.
Check the deposit and upfront collection with the Rental Booking Calculator.
If you're still paying off the property, model the repayment against the rent using the Mortgage Calculator.
Buying rather than renting out? The duty on a purchase works on a completely different scale, covered in our stamp duty guide, and the legal costs are set out in the legal fees guide.
What records should the landlord and tenant keep?
Both parties should keep the signed agreement, stamping certificate or receipt, payment evidence, inventory, condition photographs, key handover record and important notices in one shared timeline. Record the date the final party signed because the stamping deadline runs from execution, and keep proof of who submitted and paid the duty. If the rent changes, the tenancy is renewed, or a side agreement alters the term, ask whether fresh stamping or an additional instrument is needed rather than assuming the old certificate covers everything.
The agreement should also state who pays the duty and preparation cost, how deposits are held, when rent is due, the repair process, notice requirements and the condition for deductions. Clear records do not guarantee that a dispute will never happen, but they make the agreed facts easier to prove. For unusual clauses, commercial premises, staged rent or long tenures, obtain legal or LHDN guidance instead of forcing the arrangement into a standard calculator assumption.
Where PropGo fits in
The slowest part of renting isn't the paperwork, it's the search. On PropGo.my, tenants post a request describing the location, budget, and property type they want, and verified agents respond with units that match. Landlords and agents get to see real demand instead of guessing what the market wants. Fewer viewings that go nowhere, on both sides.
Frequently asked questions
Is stamping a tenancy agreement compulsory? In practice, yes, if you want it to hold up. An unstamped agreement is not admissible as evidence in court, so you lose the ability to enforce the terms you agreed to.
Does the RM2,400 exemption still apply? No. It was removed with effect from 1 January 2025. Older guides and calculators that still deduct it will give you a figure that's too low.
Who pays, the landlord or the tenant? By convention the tenant pays both the stamp duty and the preparation fee, but it's negotiable. Put whatever you agree in writing in the tenancy agreement.
What happens if I stamp it late? LHDN can charge a penalty on top of the duty, and the amount depends on how late you are. The duty itself is small, so there's little reason to risk it.
Do I need a lawyer to prepare a tenancy agreement? Not necessarily. Many are prepared by agents. A lawyer is worth it for longer tenancies, commercial premises, or unusual terms.
