Land tax rates had not been updated since 1994.
Many First Grade landowners had been paying very low, outdated tax rates even as the market value of their land increased substantially over the years.
(First Grade land is a land title without a clearly defined category, allowing flexible use for various purposes subject to planning approval)
Taxes are now adjusted based on actual land use.
NEW RATES (BASED ON CURRENT LAND USE):
Industrial land: RM3.25 per square metre statewide.
Residential buildings:
– RM0.70 per square metre in urban areas.
– RM0.50 per square metre in rural areas.
Commercial properties:
– RM3.25 per square metre in urban areas.
– RM2.80 per square metre in rural areas.
SUPPORT FOR LANDOWNERS:
- Penang has 370,000 registered land titles, 230,000 are First Grade titles.
- Up to 50% rebate provided this year to ease the transition.
- Government will allow time for landowners to appeal.
- District land (Pejabat Daerah & Tanah) administrators can approve tax reduction appeals up to RM20,000.
- Appeals above RM20,000 can be submitted to the Penang Land and Mines Director (Pengarah Pejabat Tanah & Galian) and the State Executive Council (Exco).
WHO MAY QUALIFY FOR REBATES?
- Land used for public purposes.
- Owners facing financial hardship or disability.
- Land without proper road access.
- Incomplete or abandoned development projects.
Source : https://www.thestar.com.my/news/nation/2026/02/15/penang-landowners-given-avenue-to-appeal-new-land-tax-rates