Hong Kong Tax Rates 2026-27
Current Hong Kong salaries tax, profits tax, property tax, allowances, MPF contributions, capital gains treatment and filing rules, with links to official Hong Kong tax guidance.
Updated: 2 September 2026Hong Kong Salaries Tax Rates
Salaries tax is generally computed at progressive rates on net chargeable income, subject to a ceiling based on the applicable standard rates on net income. The progressive bands currently remain:
| Net chargeable income band | Rate | Tax on band |
|---|---|---|
| First HK$50,000 | 2% | HK$1,000 |
| Next HK$50,000 | 6% | HK$3,000 |
| Next HK$50,000 | 10% | HK$5,000 |
| Next HK$50,000 | 14% | HK$7,000 |
| Remainder | 17% | - |
From the year of assessment 2024/25, the standard-rate calculation for salaries tax and personal assessment is two-tiered: 15% on the first HK$5,000,000 of net income and 16% on the remainder.
Personal Allowances for 2026/27
| Allowance | 2025/26 | 2026/27 onwards |
|---|---|---|
| Basic allowance | HK$132,000 | HK$145,000 |
| Married person's allowance | HK$264,000 | HK$290,000 |
| Single parent allowance | HK$132,000 | HK$145,000 |
| Child allowance, each of first to ninth child | HK$130,000 | HK$140,000 |
| Additional child allowance, where applicable | HK$130,000 | HK$140,000 |
| Dependent parent/grandparent aged 60+ or qualifying for Disability Allowance | HK$50,000 | HK$55,000 |
| Dependent parent/grandparent aged 55 to 59 | HK$25,000 | HK$27,500 |
From 2026/27, the ceiling for the elderly residential care expenses deduction is HK$110,000. Eligibility conditions apply to allowances and deductions.
Hong Kong Profits Tax Rates
Hong Kong applies a two-tiered profits tax regime. For eligible entities, the lower rate applies to the first HK$2 million of assessable profits. Where an entity has connected entities, the rules generally allow only one nominated connected entity to benefit from the two-tiered rates.
| Taxpayer | First HK$2 million | Above HK$2 million |
|---|---|---|
| Corporations | 8.25% | 16.5% |
| Unincorporated businesses | 7.5% | 15% |
For 2025/26, final profits tax is reduced by 100%, subject to a maximum reduction of HK$3,000 per case.
Hong Kong Property Tax
Property tax for 2025/26 and provisional property tax for 2026/27 are charged at 15% of the net assessable value of Hong Kong property. In computing net assessable value, qualifying rates paid by the owner are deducted and a statutory 20% allowance is then provided for repairs and outgoings.
Capital Gains Tax in Hong Kong
Hong Kong does not impose a separate capital gains tax. A disposal gain that is genuinely capital in nature is generally outside profits tax. However, a gain that is revenue or trading in nature can be taxable, and special statutory regimes may apply to specified foreign-sourced income and particular transactions. The tax treatment therefore depends on the facts and the Inland Revenue Ordinance.
Withholding Tax and Payments to Non-Residents
Hong Kong does not operate a general withholding-tax system for ordinary dividends and interest. Special rules can impose profits tax collection obligations for certain Hong Kong-sourced royalties or payments to non-residents, and applicable tax treaties may alter the effective rate. The payer should check the current Inland Revenue Ordinance rules and any applicable double taxation agreement before making a cross-border payment.
Mandatory Provident Fund (MPF) Contributions
For regular monthly-paid employees covered by the MPF system, employer and employee mandatory contributions are generally 5% of relevant income, subject to the statutory income limits.
| Monthly relevant income | Employer | Employee |
|---|---|---|
| Below HK$7,100 | 5% of relevant income | No mandatory contribution |
| HK$7,100 to HK$30,000 | 5% | 5% |
| Above HK$30,000 | HK$1,500 | HK$1,500 |
Self-employed persons are generally required to contribute 5% of relevant income, subject to annual or monthly minimum and maximum relevant income thresholds.
Common Hong Kong Tax Deductions
Potential deductions include qualifying home loan interest, domestic rent, mandatory retirement-scheme contributions, qualifying voluntary health insurance premiums, qualifying annuity premiums and tax-deductible MPF voluntary contributions, approved charitable donations, and other deductions provided by the Inland Revenue Ordinance. Conditions and ceilings differ by deduction.
Approved charitable donations of money are generally deductible where the aggregate is at least HK$100, subject to a ceiling of 35% of the relevant assessable income or profits.
Business losses may generally be carried forward for set-off against future profits of the trade, subject to the applicable provisions of the Inland Revenue Ordinance.
Territorial Basis of Taxation
Hong Kong principally follows the territorial source principle. Profits tax generally applies to profits arising in or derived from Hong Kong from a trade, profession or business carried on in Hong Kong. Source is determined from the actual profit-producing operations and surrounding facts. The foreign-sourced income exemption regime can also affect specified foreign-sourced income received in Hong Kong by entities within its scope.
Hong Kong Tax Year and Filing of Individual Returns
The Hong Kong year of assessment runs from 1 April to 31 March. Individuals who receive a Tax Return - Individuals (BIR60) must file it within the prescribed deadline. For the 2025/26 return, IRD issued individual returns on 4 May 2026; the standard paper filing deadline was 4 June 2026, while sole proprietors of unincorporated businesses had until 4 August 2026. Electronic filing received an automatic one-month extension.
Taxpayers should follow the deadline printed on their own return or the current IRD filing notice, as deadlines and extensions can vary.