A JB condo or serviced apartment owner pays two separate yearly property taxes. Quit rent (cukai tanah; for strata units it becomes parcel rent, cukai petak) goes to the Johor state land office and is due by 31 May. Assessment tax (cukai taksiran, which MBJB calls property tax) goes to the local council, MBJB for Johor Bahru city or MBIP for Iskandar Puteri, in two halves due by 28 February and 31 August. MBJB charges rateable value times a rate of 0.08% for residential and 0.22% for serviced apartments.
Your keys are in hand, the first maintenance bill has arrived, and then two more letters show up: one from the land office, one from the city council. “Didn’t I already pay these in the VP statement?” “Why is my serviced apartment rate higher than my friend’s condo?” “What happens if I miss it while I’m in Singapore?” These are the questions owners ask most about quit rent and assessment tax in Johor. This guide explains who collects each tax, how it is calculated, when and how to pay online, and the penalties for paying late, with notes for owners at Causewayz Square, The Asteriaz and The Celestz.
Quit rent vs assessment tax in Johor: what is the difference?
Quit rent is a state land tax tied to your title; assessment tax is a local council rate that pays for city services. They are billed by different authorities, on different bases, at different times of the year.
| Item | Quit rent / parcel rent | Assessment tax (property tax) |
|---|---|---|
| Malay term | Cukai tanah / cukai petak | Cukai taksiran / cukai harta (often called cukai pintu) |
| Collected by | Johor state, through the Land and Mines Office (PTG Johor) and district land offices | Local council: MBJB (Johor Bahru city), MBIP (Iskandar Puteri) and others |
| Legal basis | National Land Code and state land rules | Local Government Act 1976 (Act 171) |
| Based on | Land or parcel area, land category and title conditions | Rateable value of the property, times the council’s rate |
| Billed | Once a year | Twice a year |
| Deadline | 31 May | 28 February and 31 August (MBJB) |
| Who pays | Registered owner (or the developer, recovered from buyers, before strata titles are issued) | Owner of the holding |
What this means for you: put two dates in your calendar each year for assessment and one for quit rent. Neither bill is part of your maintenance fee; our JB condo maintenance fee guide lists what the fee does and does not cover.
Who collects in Johor Bahru: PTG Johor, MBJB or MBIP?
The land tax always goes to the state; the assessment goes to whichever council your property sits in.
- PTG Johor and the district land office. The Johor Land and Mines Office (Pejabat Tanah dan Galian Johor) administers quit rent and parcel rent across the state; bills are paid to the land administrator of the district where the land is registered.
- MBJB (Majlis Bandaraya Johor Bahru). Johor Bahru City Council covers the city centre, including the CIQ and Bukit Chagar area, and much of the older city. Causewayz Square in Tanjung Puteri and the Kebun Teh projects have Johor Bahru city addresses; your first bill will confirm the council.
- MBIP (Majlis Bandaraya Iskandar Puteri). Iskandar Puteri City Council covers areas such as Medini, Puteri Harbour and Nusajaya. Owners can check MBIP statements through the government’s MyGov digital service.
How is assessment tax calculated in JB? MBJB’s rates
MBJB calculates property tax as rateable value multiplied by the tax rate. According to MBJB, rateable value is based on the property’s market value (land plus building) at a valuation level approved by the state government, and the current valuation uses market values as of 2020.
| MBJB holding category | Tax rate (of rateable value) |
|---|---|
| Residential and others | 0.08% |
| Serviced apartments | 0.22% |
| Commercial | 0.23% |
| Industrial | 0.24% |
| Public housing | 0.05% |
| Development land | 0.04% |
Worked illustration
Suppose MBJB’s valuation list puts a unit’s rateable value at RM500,000 (a hypothetical figure; the council sets the actual value).
- As a serviced apartment: RM500,000 × 0.22% = RM1,100 a year, or RM550 per half-year bill.
- As a residential condo: RM500,000 × 0.08% = RM400 a year, or RM200 per half-year bill.
What this means for you: because most city-centre homes near the CIQ are serviced apartments on commercial-category title, budget for the serviced apartment rate. Spread over a year, the illustration works out to under RM100 a month, a predictable cost that is easy to plan for. For the full story on why serviced apartments are treated differently, see our guide to whether a serviced apartment is residential or commercial.
Revaluations and objections
Councils revalue properties periodically, and the new values are published for objection first. When MBJB’s revaluation notices went out in 2023, some older areas that had not been valued for about 15 years saw increases of up to 100%, and the council extended the objection window and allowed instalments, The Star reported. Under section 142 of Act 171, an owner who disagrees with a valuation can object in writing within the stated period and may be asked to bring a private valuation report to the hearing.
How is quit rent or parcel rent calculated?
Quit rent is set by the state under its land rules and depends on the land area, the land category (such as building or commercial use) and the conditions on the title. For a strata unit, the land tax is charged as parcel rent on your parcel once strata titles are issued. Amounts for a single condo unit are generally modest compared with assessment tax, but commercial-category titles pay a commercial rate, so check the figure on your own bill rather than relying on a neighbour’s.
Before and after your strata title is issued
- Before strata titles: quit rent is charged on the developer’s master title. Developers usually recover each buyer’s share, which is why a prorated quit rent item often appears in the vacant possession statement.
- After strata titles: parcel rent is billed on your own strata title and you pay it directly each year.
Our explainer on strata title, CCC and VP shows when this switch typically happens.
When to pay: the yearly calendar
Three deadlines cover both taxes for a JB city property. Missing any of them starts the penalty process automatically, even if the bill never reached you.
| Tax | Billing period | Pay by |
|---|---|---|
| MBJB assessment, first half | January to June | 28 February |
| Quit rent / parcel rent | Calendar year | 31 May |
| MBJB assessment, second half | July to December | 31 August |
MBJB notes that not receiving a bill does not exempt you from penalties, so if you live overseas, register for online bills rather than relying on post.
How to pay quit rent and assessment tax online
Both taxes can be paid online, which matters for owners who live in Singapore or elsewhere.
MBJB assessment tax
- JomPAY (Biller Code 4317, property tax only), through most Malaysian internet banking apps.
- MBJB’s e-khidmat portal, PBTPay and JOHORPay.
- Online banking at Maybank, CIMB Clicks, HSBC, Bank Rakyat, BSN, AmBank and Pos Online.
- Counters and kiosks at MBJB offices accept cash and cards; personal and company cheques have not been accepted since 25 October 2020.
If your bill has not arrived, MBJB lets owners register for MyBill on its portal to view and print it.
Quit rent and parcel rent
- The state’s online channels, including JohorPay, which the Johore Bar Committee lists as PTG Johor’s online quit rent payment system.
- The Johor iTanah portal for land administration, which PTG Johor began implementing from 3 February 2026; check it for current online services.
- District land office counters, where payment is made to the land administrator of that district.
What happens if you pay late?
Late payment is not dramatic at first, but costs and consequences grow step by step, so it is worth setting reminders.
Assessment tax (MBJB)
- A reminder letter, with a RM6 charge, to be settled within 15 days.
- A Form E notice, with an RM11 charge, to be settled within 15 days.
- A Form G warrant to seize movable property in the building (RM33). For holdings without movable assets, the council can seek a High Court auction under section 151 of Act 171.
Quit rent
Quit rent unpaid after 31 May is in arrears and attracts a late-payment charge shown on the bill. Under the National Land Code, continued non-payment can lead to a formal demand notice (Form 6A) and, if still unpaid, forfeiture of the land to the state. For a strata owner this is rare and easily avoided, but it is the reason banks and buyers’ lawyers check that quit rent is up to date before any sale or refinance.
Just bought or inherited? Update the owner’s name
New owners must register the change with the council, and leaving it late can cost more than the tax itself. MBJB uses Form I for transfers by sale or inheritance and Form J for transfers on death, submitted through its online transfer system at johor.ekhidmat.my, with a fee of RM50 per transaction. Late registration can attract a fine of up to RM2,000, imprisonment of up to six months or both under section 160 of the Local Government Act 1976, and outstanding tax should be settled before the transfer.
For the land office, your lawyer normally updates the register as part of the title transfer. Keep copies of both receipts in your property file; buyers ask for them when you sell. For the whole post-purchase sequence, see how buying a new launch condo in JB works.
Budgeting as an owner-occupier or landlord
In JB rentals the owner normally pays quit rent and assessment, not the tenant, so include both in your yearly holding costs alongside maintenance, sinking fund, insurance and repairs.
- Own-stay: set aside the yearly total in two pots, one for February, one for August, plus the May quit rent.
- Investors: subtract both taxes when you calculate net yield; our JB rental yield guide shows the method, and the JB property calculator helps you test the numbers.
- Overseas owners: register for e-bills, keep a Malaysian account with JomPAY, or authorise your property manager to pay and send receipts.
Four questions owners ask most
I paid quit rent and assessment in my VP statement. Why pay again?
The VP statement usually covers only a prorated share up to a cut-off date, to reimburse what the developer paid on your behalf. After that date, bills are issued in your name and you pay them yourself. Ask management or the developer for the cut-off date so there is no gap or double payment.
Do I still pay if the unit is empty?
Yes. Quit rent follows the title and assessment follows the holding, whether the unit is occupied, being renovated or waiting for a tenant. Start your cash-flow plan from vacant possession, not from the first tenancy.
Can the tenant pay instead?
You can agree a cost split in the tenancy agreement, but the legal liability stays with the registered owner, so penalties still fall on you if the tenant does not pay. In JB the usual practice is for the owner to pay and price it into the rent.
Do foreign owners pay a higher rate?
No. MBJB’s rates are set by property category, not by the owner’s nationality. Foreign buyers face one-off purchase costs such as state consent, stamp duty and the state levy, but yearly quit rent and assessment are calculated the same way as for Malaysian owners.
Notes for Causewayz Square, The Asteriaz and The Celestz
All three EXSIM projects are serviced apartments on commercial-category title, so plan using the serviced apartment rate rather than the residential one. None of these taxes is payable by buyers until vacant possession: Causewayz Square targets completion around 2030, and The Asteriaz and The Celestz are expected around 2029 to 2030. Until then, the developer handles land tax on the master title, and your share is settled through the VP statement.
Causewayz Square is freehold, about 600 m from the JB CIQ and about 800 m from the Bukit Chagar RTS station, which is targeted to open in February 2027; a pedestrian link to the CIQ and RTS has been proposed by the developer. For the full picture of what you will own and pay, see the Causewayz Square project page. WhatsApp us for the latest SPA price list and an estimate of yearly holding costs for your chosen layout.
Sources
- MBJB: Meaning of property tax and tax rates
- MBJB: Tax assessment, payment periods, channels, penalties and ownership transfer
- The Star (Oct 2023): Not meant to burden the people (Johor revaluations)
- Johore Bar Committee: Implementation of the Johor iTanah portal (from 3 Feb 2026)
- Johore Bar Committee: PTG Johor systems including JohorPay online quit rent payment
- PropertyGuru: Quit rent (cukai tanah) in each Malaysian state
- MyGov: MBIP property tax bill inquiry
This guide is general information, not financial advice. Rates and procedures can change; confirm current figures with PTG Johor and your local council.