This is for anyone planning to buy a first home in Johor Bahru soon. The short answer: Budget 2027, tabled on 9 October 2026, proposes to keep the full stamp duty exemption for first homes up to RM500,000 and to add partial relief for first homes up to RM750,000, for SPAs signed from 1 January 2027 to 31 December 2030. Below I set out what the speech says, what it does not say yet, and what it means at typical JB prices.
For how stamp duty works in general, see my stamp duty guide for 2026. This article covers only what Budget 2027 changes.
What Budget 2027 proposes for first-home stamp duty
- Up to RM500,000: a 100% stamp duty exemption on both the instrument of transfer (MOT) and the loan agreement for a first home.
- RM500,001 to RM750,000: the first RM500,000 of the home price is fully exempt, and the amount above RM500,000 gets a 50% exemption.
- Above RM750,000: no first-home relief was announced.
- Timing: SPAs executed from 1 January 2027 to 31 December 2030.
- Who qualifies: EY’s and PwC’s summaries of the tax measures describe it as an exemption for Malaysian citizens buying a first home. None of the documents I read mentions an age limit.
These are still proposals. Bernama, reporting the Ministry of Finance’s tax measures document on 12 October, describes them as proposed, and the detailed conditions will be set out in the stamp duty exemption order once it is gazetted.
How this fits with today’s exemption
Today, a Malaysian citizen buying a first home priced up to RM500,000 already pays no stamp duty on the MOT or the loan agreement. That exemption covers SPAs signed from 1 January 2021 and was extended in Budget 2026 to 31 December 2027. Above RM500,000 there is no first-home relief at all: a RM548,000 home pays full duty.
So for homes up to RM500,000 the two rules overlap in 2027, and Budget 2027 mainly extends that relief to 2030. The real change is the new band from RM500,001 to RM750,000, which matters in JB because our typical landed home sits just above the RM500,000 line.
What it means at JB prices
On my IQI co-broke listings for 17 October 2026, the median asking price for a subsale house in Johor Bahru is RM548,000 (263 listings) and for a condo RM258,000 (82 listings). The table compares the stamp duty a first-home buyer would pay at five prices.
| Price of first home | Today: SPA in 2026 (MOT + loan agreement) | Budget 2027: MOT | Budget 2027: loan agreement | Budget 2027: total |
|---|---|---|---|---|
| RM300,000 | RM0 (fully exempt) | RM0 | RM0 | RM0 |
| RM450,000 | RM0 (fully exempt) | RM0 | RM0 | RM0 |
| RM548,000 | RM10,440 + RM2,466 = RM12,906 | RM720 | RM108 | RM828 |
| RM650,000 | RM13,500 + RM2,925 = RM16,425 | RM2,250 | RM337.50 | RM2,587.50 |
| RM750,000 | RM16,500 + RM3,375 = RM19,875 | RM3,750 | RM562.50 | RM4,312.50 |
At the condo median, nothing changes: a RM258,000 first home is exempt today and would stay exempt. At the house median, the difference is large. On my figures, a RM548,000 first home pays RM12,906 today and about RM828 with an SPA signed in 2027.
How I computed the partial exemption. The speech says the first RM500,000 of the home price is fully exempt and the amount above it gets 50%. It does not say how that maps onto the banded MOT scale or onto the loan amount. For the MOT, I charge duty on the portion above RM500,000 at the 3% band and halve it. For the loan agreement, I split the loan in proportion to the price: the share matching the first RM500,000 is fully exempt and the rest gets 50%. Another reading applies the RM500,000 split to the loan amount itself, which gives lower loan duty (RM0 at RM548,000 and RM437.50 at RM750,000). The official text does not settle this, so treat the Budget 2027 columns as an illustration only.
What to do if you are buying now (SPA in late 2026)
- Up to RM500,000: there is no stamp duty reason to wait. Today’s exemption already covers you.
- RM500,001 to RM750,000: signing in 2026 means full duty, as in the table. If the home is not going anywhere and your timing is flexible, discuss with your lawyer whether an SPA in January 2027 makes sense. Weigh that against the risk of losing the unit or a change in price.
- Above RM750,000: Budget 2027 changes nothing for you.
- Get your loan approved first. The stamp duty saving means little if the loan falls through. See my JB home loan guide.
If you are buying in 2027 or later
- Check that you still count as a first-home buyer. The full conditions will be in the exemption order.
- Stamp duty is charged on the price or market value, whichever is higher, so a home priced near RM750,000 needs a valuation that supports it.
- Before you rely on the relief, ask your lawyer to confirm that the exemption order has been gazetted.
- Budget for legal fees, which this measure does not touch. My buying costs calculator puts all the costs together, and my first-home guide for JB covers the steps.
Other Budget 2027 housing measures
- Housing credit guarantees: SJKP will provide up to RM20 billion in financing guarantees for about 80,000 first-time buyers, particularly self-employed people without a fixed income.
- Public housing: nearly RM1 billion for Rumah Mesra Rakyat and Program Residensi Rakyat, including a new project in Kulai, Johor. No details on size or eligibility yet.
- Abandoned projects: a full stamp duty exemption on loan agreements and instruments of transfer for rescuing contractors or developers and original purchasers, from 2027 to 2030.
- JB transport: the speech adds local bus routes in Johor Bahru ahead of the RTS Link opening.
I found no change to RPGT, foreign-buyer stamp duty, EPF housing withdrawals, rent-to-own schemes or service tax on rent in the speech or in the tax summaries I read. Forest City’s family office incentives are about investment funds, not property. For the wider market picture, see my JB property news for October 2026, and to see what is on the market around the RM500,000 line, browse my JB subsale house listings.
Questions about your situation?
Tell me the price, the type of home and when you plan to sign, and I will tell you which rule applies and roughly what stamp duty to budget for.
Sources: Ministry of Finance Malaysia, “Speech: The Fifth MADANI Budget 2027”, 9 October 2026; Bernama, “Budget 2027: Stamp Duty Exemption For First Home, Revival Of Abandoned Housing Projects”, 12 October 2026; Bernama, “Budget 2027: RM20 Billion To Assist 80,000 First-time Homebuyers – PM Anwar”, 9 October 2026; The Star, “Budget 2027: Govt proposes stamp duty exemptions for first-time homebuyers”, 9 October 2026; Malay Mail, “Budget 2027: Stamp duty exemption proposed for first homes up to RM500,000”, 9 October 2026; PwC Malaysia, “Tax in Motion: Budget 2027 Edition”, October 2026; EY Malaysia, “Take 5: Malaysia Budget 2027”, October 2026; SAYS, “#Belanjawan2026: First-Time Home Buyers To Enjoy Stamp Duty Exemption Until 2027”, 10 October 2025; iProperty, “Stamp duty in Malaysia 2026: how much is it and who may be exempt”, September 2026
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 17 October 2026, not legal, tax or financial advice.