Aside from the stamp duty exemption, the government also offers a personal income tax relief on housing loan benefits for first-time homebuyers, an incentive often overlooked compared to stamp duty exemptions, but can save several thousand ringgit in taxes each year during the relief period.
How Much Relief Can Be Claimed?
- Properties priced at RM500,000 and below — relief up to RM7,000 per year on housing loan benefits paid
- Properties priced from RM500,001 to RM750,000 — relief up to RM5,000 per year
This relief is valid for Tax Years 2025 to 2027, meaning buyers who sign the Sale and Purchase Agreement within this period can claim the relief repeatedly each year during the eligibility period, not just once.
Who Is Eligible?
Just like the stamp duty incentive, this relief is targeted at first-time residential homebuyers who have an active housing loan (from a bank or licensed financial institution). The claimed interest must be the actual interest paid in the relevant tax year, as stated in your annual housing loan statement.
How to Claim
This relief is claimed when filling out the e-BE/e-B annual form on the LHDN MyTax portal, under the housing-related relief category. Keep your annual loan interest statement from your bank as supporting documents in case of an audit by LHDN.
Plan Your Financing Wisely
Before applying for a loan, estimate your monthly instalments and the total interest that will be paid over the loan period using our Term Loan Calculator, this helps you estimate the annual tax relief amount you will receive. If you are a gig worker or self-employed without a payslip, check your eligibility for financing first through our Madani SJKP Calculator before moving on to the tax stage.
Combine this incentive with the first home stamp duty exemption to maximise your first home ownership cost savings.
