“Penang increases the 2026 quit rent rebate to 50% and introduces appeal mechanisms to ease the impact of revised land rates.”
Kuala Lumpur, 24th December 2025, 06.14pm – The Penang state government has approved a higher quit rent rebate of 50% for 2026, up from the previously announced 32.5%, in a move aimed at easing the financial impact of revised land rates on property owners.
Chief Minister Chow Kon Yeow said the rebate is subject to the minimum quit rent rate prescribed under the National Land Code, and the newly revised quit rent rates will remain in force for at least 10 years, as stipulated by law.
He explained that where the quit rent payable after applying the rebate is lower than the amount paid in the preceding year, the existing quit rent amount will continue to apply.
“This method is designed to strike a balance between reducing the burden on landowners and safeguarding the state’s revenue needs,” Chow said at a press conference on Tuesday.
In addition to the higher rebate, the state executive council has agreed to allow appeals on quit rent reductions, outstanding arrears and late payment penalties through land office appeal mechanisms on a case-by-case basis.
Chow said the appeal process would also cover First Grade landowners affected by revised rates based on current land use, as well as those involved in the reclassification of land from rural to urban status.
All appeals will be assessed in accordance with established conditions, with the mechanism intended to assist landowners who are significantly affected by the implementation of the new quit rent structure, he added.
Quit rent bills will be issued to landowners in mid-January, while online checking and payment services will be available from Jan 2.
Previously, the state government had announced a 100% waiver on late payment penalties for outstanding quit rent and parcel rent from Jan 1 to Dec 31, 2026, involving penalty arrears estimated at RM25 million.
On Sept 19, Penang implemented a comprehensive review of quit rent rates alongside the reclassification of rural land to urban land across the state, in line with Section 101 of the National Land Code. The changes will take effect from Jan 1 next year.
The quit rent revision affects nearly 370,000 land titles statewide, covering residential, commercial, industrial, agricultural and other special land use categories.
