Assessment tax (cukai taksiran) in Penang: due dates and late charges

The short version

• Who: Penang island is billed by MBPP (Majlis Bandaraya Pulau Pinang). The mainland is billed by MBSP (Majlis Bandaraya Seberang Perai).
• When: both councils bill twice a year, in January and July. Pay the first half by 28 February (29 in a leap year) and the second half by 31 August.
• Late: a notice charge is added on 1 March and 1 September: RM5.00 at MBPP, RM10 at MBSP. If you still do not pay, a warrant of distress of RM50 can follow.
• MBPP no longer posts paper bills (from 1 January 2026). Register for its e-Bill system.
• Discounts: neither council publishes a rebate for homeowners. MBSP says the law gives it no power to give a concession because you live in the house yourself.

Island or mainland?

Penang has two city councils. MBPP covers Penang island. MBSP covers Seberang Perai, the mainland. Your assessment bill comes from the council for the area your property is in.

How the tax is worked out

Both councils use the same formula, set by the Local Government Act 1976:

assessment tax = annual value x rate (%)

• Annual value is the estimated yearly rent the property could fetch. MBSP explains it as the estimated gross monthly rent x 12, based on similar homes nearby. Every home has a rental value, whether you live in it, rent it out or leave it empty.
• The rate is set each year by the council to meet its budget.

MBPP rates from 1 January 2025 (the island):

MBPP splits its area into two rating areas: the City of George Town, and the area outside it.

MBSP's page explains its formula but does not list its current rates.

New buildings are charged from one month after the Certificate of Completion and Compliance (CCC) or the occupation certificate (OC), MBPP says. Empty land is charged too.

Sources: MBPP Penilaian Harta and MBSP Penilaian Dan Kutipan Cukai Kadaran, read 2026-10-14.

Due dates and late charges

MBSP says a warrant lets its officers seize movable property in the building, and auction the building or land. It can also hold back approvals for an owner with arrears, such as a business licence at that address, building plans or an occupation certificate.

2026 only, island: The Star reported that MBPP moved the first-half deadline from 28 February to 31 March 2026, after it switched to digital bills. MBPP said those who did not pay between 1 April and 31 August would be fined RM5, and RM10 after that. MBPP's page does not say whether these fines replace the RM5.00 notice charge or add to it.

Did not get a bill? MBPP asks owners to contact its revenue collection section (Bahagian Kutipan Hasil) if no bill arrives in January or July.

Sources: MBPP Penilaian Harta, MBSP FAQ, Cukai kadaran and The Star, 5 March 2026, read 2026-10-14.

How to pay

MBPP (island) lists five online channels:

1. PEARL, One Touch Penang (the council's app)
2. PBTPay
3. eBayar
4. JomPAY
5. MBPP Smart Kiosk

From 1 January 2026, MBPP stopped sending assessment bills by post. By 22 February 2026, about 66,900 owners had registered for its e-Bill system, The Star reported.

MBSP (mainland) lists, among others:

• the ASPIRE Seberang Perai app (aspire.mbsp.gov.my): DuitNow, cards and FPX;
• JomPAY, biller code 5322 (Ref-1: your tax account number);
• MBSP's own sites (mbsppay.mbsp.gov.my) and the state's eBayar (ebayar.penang.gov.my);
• PBTPay (pbtpay.kpkt.gov.my);
• counters at Menara Bandaraya, Bandar Perda, Bukit Mertajam (04 549 7555); Kompleks Makanan Kg. Jawa, Butterworth (04 310 5571); and Sungai Jawi (04 582 4355);
• post offices, 7-Eleven, and Boost, Touch 'n Go and Shopee e-wallets.

Sources: MBPP Bayaran Cukai Taksiran, The Star, 5 March 2026 and MBSP Saluran Bayaran Cukai Kadaran, read 2026-10-14.

Disagree with your annual value?

• MBPP: an owner can object in writing within one month of the assessment notice (Notis Taksiran). The grounds include that the property is valued above its rateable value.
• MBSP: object by letter or through MBSP's website by the date in the notice. You can appear before its tax appeal committee, or send someone with a signed letter of authority. If you still disagree, you can appeal to the High Court, but MBSP says you must pay the tax as decided first.
• The rate itself cannot be appealed, MBPP says: it is fixed for the year.

MBSP's officers for valuation questions are listed on its page: 04-5497492 and 04-5497494.

Sources: MBPP Penilaian Harta and MBSP Penilaian Dan Kutipan Cukai Kadaran, read 2026-10-14.

Rebates, relief and exemptions

• No owner-occupier discount. MBSP's FAQ says there is no provision in the Local Government Act 1976 for a concession on a home the owner lives in.
• Building destroyed: MBSP says relief can be given if a building is demolished or destroyed by fire, storm or other causes. For a building that is derelict, burnt or unfit to live in, write to MBSP's valuation department to have it removed from the valuation list.
• Exempt uses: under Section 134 of the Act, places of worship, licensed cemeteries or crematoria, public schools and charitable premises can be exempt. Under Section 135, the state can exempt or reduce the tax for non-profit welfare, social or recreational use.
• Lucky draws, not rebates: MBPP runs a yearly lucky draw for owners who paid a full year with no arrears.

Sources: MBSP FAQ, Cukai kadaran, MBPP Penilaian Harta, Buletin Mutiara, 4 June 2025 and MBSP home page, read 2026-10-14.

Buying, selling or inheriting

• Seller and buyer must each tell the council within three months of a sale or transfer, on Borang I.
• Heirs use Borang J; MBPP asks for notice within one year of the owner's death.
• Owners must also tell the council about new buildings, demolitions and extensions.

See Moving in: utilities checklist for the other accounts to change.

Sources: MBPP Penilaian Harta and MBSP FAQ, Cukai kadaran, read 2026-10-14.

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