GEORGE TOWN: Penang will increase quit rent in the state by between 29% and 200% for various land categories from 2026.
There will be a 32.5% discount in 2026 and a 20% discount in 2027 and 2028 to cushion the hike.
Chief Minister Chow Kon Yeow said this move will affect 370,000 landowners in the state.
He said this follows the reclassification of town and village boundaries in the state.
"The rate increase after revision follows the new gazetting effective from January 2026.
"The residential tax rate will be increased from 54 sen to 70 sen per square metre with a minimum payment of RM70 per lot for all land in the city category.
"For rural areas, the tax rate for residential properties will be increased from 22 sen to 50 sen per square metre with a minimum payment of RM50 per lot.
"This means that all owners of residential land with an area of less than 100 square metre or 1076 sq ft will pay a minimum tax rate of RM70 per year in city areas or RM50 per year in rural areas.
"This minimum rate includes low-cost houses, low-medium cost houses and some of the affordable housing or Rumah Mutiaraku schemes in Penang with an area of less than 100 square metres," he said during a press conference held at his office in Komtar on Friday (Sept 19).
Chow said tax for land under the industrial category has been increased from RM1.29 to RM3.25 per square metre throughout Penang regardless of it being under city or rural areas.
"The rate for businesses has been increased to RM3.25 per square metre in urban areas and RM2.80 per square metre in rural areas with a minimum payment of between RM280 and RM325 for land areas of less than 100 square metre.
"For the agricultural category, the tax rates will be between RM15 and RM120 per hectare depending on the type of crops one grows.
"Durian plantations, however, will be imposed taxes of RM800 per hectare," he added.
Chow said for livestock farming, the new increase is between RM250 and RM750 per hectare.
"Several new categories have been introduced under the special rate, including golf courses at RM2,500 per hectare, RM3.25 per square metre for quarries, RM0.54 per square metre for all Federal Government land under the Federal Land Commissioner's holding and a nominal rate of RM50 per lot for mosques, non-Islamic places of worship and cemetery lands.
"We have introduced a new rates for village houses of RM50 per lot as well," he said.
Chow said the move to increase the rates was overdue, as the last adjustment occurred 31 years ago.
"This follows a state government's move to redraw 10 town boundaries and gazette 25 densely built areas as townships instead of villages or rural areas," he said.
The 10 expanded townships are Bayan Lepas, Balik Pulau, Batu Ferringhi, Tanjung Bungah, George Town, Bukit Mertajam, Sungai Bakap, Nibong Tebal, Kepala Batas and Butterworth.
The 25 newly created townships are Bayan Baru, Batu Maung, Sungai Ara, Pulau Silikon, Bukit Jambul, Puncak Penara, Perdana Mutiara, Pinang Emas, Bayu Emas, Lembah Perai, Alma, Bukit Minyak, Bukit Tengah, Bandar Perda, Seberang Jaya, Jawi, Bandar Cassia, Simpang Ampat, Bandar Tasek Mutiara, Sungai Dua, Teluk Air Tawar, Bertam, Tasek Gelugor, Pokok Sena and Ara Kuda.
