Most buyers budget for the mortgage and stop there. But every property owner in Malaysia also pays two yearly bills. They are worth knowing about before you buy, not after.
Your situation is different? Ask me on WhatsApp. I reply myself, usually the same day.
Ask Jason on WhatsAppTwo bills, two authorities
People often assume there is one “property tax”. There are actually two completely separate charges:
| Quit rent (cukai tanah / cukai petak) | Assessment tax (cukai taksiran / cukai pintu) | |
|---|---|---|
| Paid to | State land office | Local council (e.g. MBJB in Johor Bahru city) |
| Based on | Land area (for condos, your share of the land) | Estimated annual rental value of the property |
| Typical amount, JB condo | About RM50–200 a year | Often RM500–2,000+ a year |
| When due (Johor) | Once a year, by 31 May | Twice a year: by 28 February and 31 August (MBJB) |
Due whether or not you have a tenant
Both bills come every year, whether the unit is rented out, lived in or empty. For overseas investors running the numbers from abroad, it is easy to forget them until the reminders pile up.
Miss the deadline and it gets expensive
- Assessment tax: late payment brings notice charges and penalties, and the council can eventually take enforcement action, including seizure.
- Quit rent: unpaid quit rent leads to a formal demand notice, and under the National Land Code the state can ultimately forfeit the land. Rare, but not something to let slide.
How to stay on top of it from overseas
- Put both into your annual holding costs from day one.
- Pay online: both the Johor land office and MBJB accept online payment.
- Set calendar reminders for February, May and August.
- Keep the receipts: if you rent the unit out, both are deductible against rental income. See rental tax for non-resident landlords.
The other ongoing costs of owning are covered in 6 hidden costs nobody tells you about.
Want the full yearly cost of a unit you are looking at? Send it to me and I will list every recurring charge for you.
Sources: MBJB FAQ: assessment tax payment periods; Property tax in Johor Bahru. General information; confirm current amounts and deadlines with your land office and local council. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6).