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Hong Kong Salaries Tax & Net Salary Calculator

Compute Hong Kong salaries tax and monthly take-home pay for Year of Assessment 2025/26 and 2026/27 with all 9 allowances, 10 deductions, dual progressive vs standard rate comparison, MPF mandatory contributions, the HK$3,000 one-off tax reduction, and provisional tax.

HK$

Salary + cash allowances + bonus + commission. Excludes employer MPF and non-cash benefits.

Basics

HK$

Pre-computed figure on your BIR60 if your employer provides housing.

MPF + voluntary contributions

HK$

Auto-derived from your income at 5% (max HK$1,500/month = HK$18,000/year). Override only if your employer reports a different figure.

HK$

Combined annual cap: HK$60,000. Tax-deductible voluntary MPF contributions and qualifying deferred annuity premiums share this cap.

Housing — home loan interest or rent

HK$

HK$

Education

HK$

Health, elderly care, and reproduction

HK$

HK$

Each insured person allows up to HK$8,000 in qualifying premium deduction.

HK$

Charitable donations

HK$

Total of receipts of at least HK$100. Capped at 35% of your assessable income after other deductions.

Monthly take-home pay

HK$27,275/ month

Net annual income: HK$327,300

Annual Salaries Tax

HK$14,700

Progressive rate applied

MPF mandatory (employee)

HK$18,000

HK$1,500 / month

Effective tax rate

4.08%

of assessable income HK$360,000

100% one-off reduction

-HK$3,000

Final tax already reduced

Dual-rate comparison

Picked by IRD

Progressive rates (on NCI)

HK$17,700

Standard rate 15% / 16% (on Net Income)

HK$51,300

Difference vs the other method: HK$33,600

Tax computation breakdown

Assessable Income (gross + housing benefit)HK$360,000
Less: MPF mandatory (employee)- HK$18,000
Less: Other allowable deductions- HK$0
Net Income (after deductions)HK$342,000
Less: Total allowances- HK$132,000
Net Chargeable IncomeHK$210,000
Tax under progressive ratesHK$17,700
Tax under standard rate (15% / 16%)HK$51,300
Salaries Tax (lower of the two)HK$17,700
Less: 100% one-off reduction- HK$3,000
Final Salaries Tax payableHK$14,700

Allowance breakdown
Basic / Married Person's AllowanceHK$132,000
Child Allowance (regular)HK$0
Additional Child Allowance (year of birth)HK$0
Dependent Parent/Grandparent 60+HK$0
Dependent Parent/Grandparent 55–59HK$0
Dependent Brother/Sister AllowanceHK$0
Single Parent AllowanceHK$0
Disabled Dependant AllowanceHK$0
Personal Disability AllowanceHK$0
Total allowancesHK$132,000
Deduction breakdown
MPF mandatory (employee)HK$18,000
TVC + qualifying annuity premiumsHK$0
Home loan interestHK$0
Residential rentHK$0
Self-education expensesHK$0
Elderly residential care expensesHK$0
VHIS qualifying premiumsHK$0
Approved charitable donationsHK$0
Assisted reproduction serviceHK$0
Total deductionsHK$18,000

Each portion of your net chargeable income is taxed at a different rate. The highlighted band is the marginal bracket — the rate that applies to your next dollar earned.

2%
6%
10%
14%
17%
BracketRateAmount in bracketTax contribution
0–50,0002%HK$50,000HK$1,000
50,000–100,0006%HK$50,000HK$3,000
100,000–150,00010%HK$50,000HK$5,000
150,000–200,00014%HK$50,000HK$7,000
200,000+
Your marginal bracket
17%HK$10,000HK$1,700
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Hong Kong Salaries Tax calculator. Take-home pay, MPF and provisional tax.

The Hong Kong Salaries Tax calculator computes your annual tax under both the progressive rates and the two-tier standard rate, then takes whichever is lower. It also shows monthly take-home pay after MPF mandatory contributions, the HK$3,000 one-off final-tax reduction from the 2026-27 Budget, and the provisional Salaries Tax that IRD bills for the following year.

What is Hong Kong Salaries Tax? A primer for expats and HR users

Salaries Tax is the income tax levied by the Hong Kong Inland Revenue Department (IRD) on income from employment, office and pension under Section 8 of the Inland Revenue Ordinance. Any income arising in or derived from Hong Kong — base salary, bonus, commission, contract gratuity and the rental value of employer-provided quarters — is chargeable. Hong Kong uses a territorial basis of taxation: only Hong Kong-sourced employment income is taxed and overseas income is not, which is one of the main reasons multinationals pay employees out of Hong Kong. A short-stay exemption applies to visitors physically present for no more than 60 days during the year of assessment.
Two features of Hong Kong Salaries Tax are unusual by international standards. First, the IRD computes tax under two parallel methods — progressive rates on net chargeable income (5 brackets at marginal rates of 2%, 6%, 10%, 14% and 17%) and the two-tier standard rate on net income (15% on the first HK$5 million, 16% on the remainder) — and automatically charges the lower of the two. No election is required. Second, Hong Kong has no PAYE / monthly withholding. Employers do not deduct tax from the monthly payslip; instead, the employee receives a BIR60 individual tax return in May, files by 3 June (paper) or 3 July (eTax), and then pays the final tax plus the next year's provisional tax in one or two instalments.
For Year of Assessment 2025/26 (1 April 2025 to 31 March 2026) the basic allowance is HK$132,000, the married person's allowance is HK$264,000, and each qualifying child is HK$130,000. The 2026-27 Budget announced on 25 February 2026 proposes raising the basic allowance to HK$145,000, the married person's allowance to HK$290,000, the child allowance to HK$140,000 and the elderly residential care deduction ceiling from HK$100,000 to HK$110,000 from YOA 2026/27 onwards (pending Inland Revenue (Amendment) Ordinance enactment). The same Budget also grants a one-off 100% reduction of YOA 2025/26 final Salaries Tax, capped at HK$3,000 per case, benefitting about 2.12 million taxpayers.

How Hong Kong Salaries Tax is calculated: a 6-step BIR60 walkthrough

The IRD computation mirrors the BIR60 return structure and breaks down into six steps:
1. Compute Assessable Income. Add up annual salary, cash allowances, bonus, commission, contract gratuity and the rental value of any employer-provided quarters (deemed 10% / 8% / 4% of post-deduction income, depending on the type of accommodation).
2. Subtract MPF mandatory employee contributions and other allowable deductions. MPF mandatory employee contribution is 5% of monthly relevant income capped at HK$1,500/month (HK$18,000/year, effective since 1 June 2014 per MPFA). TVC and qualifying deferred annuity premiums share a combined HK$60,000/year cap. Home loan interest is capped at HK$100,000 (HK$120,000 if residing with a child born on or after 25 Oct 2023). Residential rent has the same cap but cannot be claimed in the same year as home loan interest. Self-education is HK$100,000, elderly residential care HK$100,000 (rising to HK$110,000 in YOA 2026/27), VHIS HK$8,000 per insured, assisted reproduction services HK$100,000, and approved charitable donations up to 35% of net income (minimum HK$100 per receipt).
3. Arrive at Net Income (NI) = Assessable Income − MPF − other deductions. This figure is the basis for the standard-rate calculation.
4. Subtract the 9 personal allowances to arrive at Net Chargeable Income (NCI). The 9 allowances are: basic HK$132,000, married HK$264,000, each child HK$130,000 (additional HK$130,000 in the year of birth, doubling it for that child), dependent parent / grandparent 60+ HK$50,000 (additional HK$50,000 if living with you continuously), dependent parent 55-59 HK$25,000 (additional HK$25,000 if co-resident), dependent brother/sister HK$37,500, single parent HK$132,000, disabled dependant HK$75,000 and personal disability HK$75,000.
5. Apply both rate scales and take the lower. Progressive: first HK50,000 × 2% + next HK50,000 × 6% + next HK50,000 × 10% + next HK50,000 × 14% + remainder × 17%, applied to NCI. Standard: first HK$5,000,000 × 15% + remainder × 16%, applied to NI. The IRD charges whichever is lower without any election by the taxpayer.
6. Apply the one-off 100% final-tax reduction (HK$3,000 cap, YOA 2025/26 only) and add the next year's provisional Salaries Tax. The total payable to IRD = final tax (after reduction) + provisional tax for the following year of assessment.

Salaries Tax formula

T=min⁡ ⁣(∑i=15ri⋅bi(NCI),  s⋅NI)−RT = \min\!\Big(\sum_{i=1}^{5} r_i \cdot b_i(\text{NCI}),\; s \cdot \text{NI}\Big) - R
  • TT = Final Salaries Tax payable after the one-off reduction
  • NI\text{NI} = Net Income = Assessable Income − MPF − other deductions
  • NCI\text{NCI} = Net Chargeable Income = Net Income − total allowances
  • rir_i = Progressive marginal rates (2%, 6%, 10%, 14%, 17%)
  • bib_i = Amount falling in bracket i (HK$50,000 each, last bracket is the remainder)
  • ss = Two-tier standard rate (15% on first HK$5,000,000, 16% on remainder)
  • RR = One-off 100% reduction (HK$3,000 cap for YOA 2025/26 final tax; none for YOA 2026/27)
The key idea is the "whichever is lower" rule. Take a single Hong Kong employee with HK$600,000 annual income, no dependants, no extra deductions:
MPF deduction = min(5% × 600,000, 18,000) = HK$18,000 Net Income NI = 600,000 − 18,000 = HK$582,000 Net Chargeable Income NCI = 582,000 − 132,000 (basic allowance) = HK$450,000
Progressive rates: First 50,000 × 2% = $1,000 Next 50,000 × 6% = $3,000 Next 50,000 × 10% = $5,000 Next 50,000 × 14% = $7,000 Remainder 250,000 × 17% = $42,500 Progressive total = $58,500
Standard rate: 582,000 × 15% = $87,300
Lower of the two: $58,500. Apply the HK$3,000 one-off reduction → final Salaries Tax = HK$55,500.
Monthly take-home pay = (600,000 − 18,000 − 55,500) ÷ 12 ≈ HK$43,875. The effective tax rate (tax ÷ assessable income) is about 9.25%, which is why Hong Kong is widely viewed as a low-tax jurisdiction. Most mid-career professionals pay an effective rate of 5% to 12%, far below the headline 15% standard rate would suggest.

Worked examples: 3 typical Hong Kong filers (YOA 2025/26)

Single professional, HK$50,000/month, no dependants

Mr Chan earns HK$50,000 a month (HK$600,000 annually) and rents a flat in Mong Kok for HK$15,000/month (HK$180,000/year). MPF mandatory employee contribution is HK$18,000 (capped). Residential rent deduction is capped at HK$100,000. No other deductions.
Net Income = 600,000 − 18,000 − 100,000 = HK$482,000. Basic allowance HK$132,000 → Net Chargeable Income = HK$350,000.
Progressive: 50k × 2% + 50k × 6% + 50k × 10% + 50k × 14% + 150k × 17% = 1,000 + 3,000 + 5,000 + 7,000 + 25,500 = HK$41,500. Standard: 482,000 × 15% = HK$72,300.
Progressive wins. Apply HK3,000 reduction → final Salaries Tax = HK38,500. Monthly take-home pay ≈ (600,000 − 18,000 − 38,500) ÷ 12 = HK$45,292. Skipping the residential rent claim would push final tax to HK$55,500 — a HK$17,000 difference per year. This is exactly why IRD reminds tenants to keep receipts.

Married dual-earner couple: joint vs separate assessment

Mr Chan earns HK$800,000 a year, Mrs Chan earns HK$300,000, they have one child (past the year of birth) living with both parents.
Separate assessment (each spouse files alone): Mr Chan — MPF 18,000 (capped); NI = 800,000 − 18,000 = 782,000; allowances: basic 132,000 + child 130,000 = 262,000; NCI = 520,000. Progressive: 1,000 + 3,000 + 5,000 + 7,000 + 320,000 × 17% = HK70,400. Standard: 782,000 × 15% = HK117,300. Progressive wins. Less HK3,000 reduction = HK67,400. Mrs Chan — MPF 5% × 300,000 = 15,000; NI = 285,000; allowance: basic 132,000; NCI = 153,000. Progressive: 1,000 + 3,000 + 5,000 + 3,000 × 14% = HK$9,420. Standard: HK$42,750. Progressive wins. Less HK3,000 reduction = HK6,420.
Note: under separate assessment, the HK$3,000 one-off reduction applies per case, so each spouse claims HK$3,000 — HK6,000 between them. Separate total = 67,400 + 6,420 = HK73,820.
Joint assessment (one case): Combined NI = 782,000 + 285,000 = 1,067,000. Allowances: married 264,000 + child 130,000 = 394,000. NCI = 673,000. Progressive: 1,000 + 3,000 + 5,000 + 7,000 + 473,000 × 17% = HK$96,410. Standard: HK$160,050. Progressive wins. Less HK$3,000 reduction (one case, single HK$3,000 cap) = HK$93,410.
Separate assessment saves about HK$19,590 here. Two reasons: joint assessment pushes Mrs Chan's lower income up onto Mr Chan's higher marginal brackets, and the HK$3,000 reduction is halved (one case instead of two). General rule: joint assessment helps only when one spouse has income below their own basic allowance; when both earn moderate-to-high income, separate assessment wins almost every time.

Senior manager, HK$2,000,000 a year — does the standard rate catch up?

Ms Lee earns HK$2,000,000 a year, is single, supports a 62-year-old mother who lives with her, pays HK$95,000 in home loan interest and contributes HK60,000 to TVC. Deductions: MPF 18,000 + TVC 60,000 + home loan interest 95,000 = HK173,000.
Net Income = 2,000,000 − 173,000 = HK1,827,000. Allowances: basic 132,000 + parent 60+ 50,000 + parent 60+ co-residence 50,000 = HK232,000. Net Chargeable Income = HK$1,595,000.
Progressive: 1,000 + 3,000 + 5,000 + 7,000 + 1,395,000 × 17% = HK$253,150. Standard: 1,827,000 × 15% = HK$274,050.
Progressive is still lower. Apply HK3,000 reduction → final Salaries Tax = HK250,150. Effective tax rate about 12.5%. Monthly take-home pay ≈ (2,000,000 − 18,000 − 250,150) ÷ 12 = HK$144,321.
This illustrates that even at HK$2 million a year, most senior managers remain inside the progressive-rate range. For a single filer with only the basic allowance and MPF, the crossover point where the standard rate finally becomes the lower number sits at roughly HK$2,040,000 of gross annual income. Add residential rent or home loan interest deductions and the crossover shifts to about HK$2,150,000. Three children plus dependent parents and the crossover moves above HK$10 million — meaning the headline "15% standard rate" is in practice a ceiling, not a floor.

5 tax-saving plays for Hong Kong filers

  • Use the full HK$60,000 TVC + qualifying annuity cap before 31 March. For a marginal-17% taxpayer, contributing HK$60,000 to a Tax-Deductible Voluntary Contribution account cuts tax by HK$10,200 — a guaranteed 17% return that beats almost any low-risk investment. TVC and qualifying deferred annuity premiums share the same cap, not two separate HK$60,000 limits.
  • Pick home loan interest OR residential rent — but pick the right one. You cannot claim both in the same year of assessment. If you live with a child born on or after 25 Oct 2023, both ceilings rise from HK$100,000 to HK$120,000 — particularly useful for first-time buyers with a newborn. Home loan interest is claimable for a lifetime maximum of 20 years of assessment, so plan which years to claim around your highest marginal-rate years.
  • Re-run the joint-vs-separate-assessment numbers every year. The general rule: joint helps only if one spouse earns less than their own basic allowance (HK$132,000 in YOA 2025/26 — roughly HK$11,000/month). For two dual-career earners, separate assessment almost always wins — and separate assessment lets each spouse claim a separate HK$3,000 one-off reduction (HK$6,000 between them instead of HK$3,000 for a joint case). The simplest workflow: both spouses complete BIR60 fully and elect 'auto' or simply file separately, letting IRD apply whichever is lower if joint was elected.
  • Donations under HK$100 don't count. Approved charitable donations are capped at 35% of net income, and the minimum acceptable individual receipt is HK$100. Concentrate giving to IRD-recognised charities holding section 88 status (Oxfam, World Vision, Po Leung Kuk, etc.); keep bank records and receipts for 7 years for potential audit. Donations must be made by 31 March to count for that year of assessment.
  • Missed a deduction or allowance? You have 6 years to claim. If you forgot the dependent parent allowance, the elderly residential care expense, TVC or the new assisted reproduction services deduction (introduced in YOA 2024/25, HK$100,000 cap), you can write to IRD under IRO s.64(2) within 6 years of the end of the year of assessment to amend the assessment. The most commonly missed items are the co-residence additional parent allowance (HK$50,000) and TVC claims processed by the MPF trustee but never reported on BIR60.

Hong Kong Salaries Tax — frequently asked questions

At what income level do I start paying Salaries Tax in Hong Kong?

For YOA 2025/26, a single filer with the basic allowance HK$132,000 and full MPF deduction HK$18,000 starts owing Salaries Tax once annual income exceeds about HK$150,000 — roughly HK$12,500 a month. A married filer using the HK$264,000 married person's allowance starts owing tax above about HK$282,000 a year (HK$23,500 a month). Each qualifying child adds HK$130,000 to the threshold; each dependent parent aged 60+ adds HK$50,000 (HK$100,000 if co-resident). Exact thresholds depend on your specific allowance and deduction mix.

Why does the calculator compute both progressive and standard rates?

Because the IRD does too. Under section 13 of the Inland Revenue Ordinance, Salaries Tax is the lower of (a) progressive rates 2%-17% applied to Net Chargeable Income (after allowances), or (b) the two-tier standard rate 15% / 16% applied to Net Income (before allowances). The taxpayer does not elect — IRD applies whichever is lower automatically. The calculator shows both so you can see your effective rate and how close you are to the crossover point. For most filers with dependants, progressive wins; for high earners with few allowances, standard begins to bite around HK$2 million of gross income.

How does MPF mandatory contribution affect my taxes?

An employee's MPF mandatory contribution — 5% of monthly relevant income, capped at HK$1,500/month (HK$18,000/year) — is fully deductible from assessable income. The cap has been HK$1,500/month since 1 June 2014 (MPFA). If your monthly income is below HK$7,100 you are exempt from mandatory contribution (your employer still contributes 5%); above HK$30,000 the employee mandatory contribution is fixed at HK$1,500 and any income above that does not trigger additional mandatory contributions. On top of mandatory, you can contribute up to HK$60,000/year to a Tax-Deductible Voluntary Contribution (TVC) account combined with qualifying deferred annuity premiums.

Should a married couple file joint or separate assessment?

Separate assessment is the IRD default — each spouse files their own BIR60 and gets their own assessment notice. Joint assessment helps only when one spouse earns less than their own basic allowance (HK$132,000 in YOA 2025/26), because the unused allowance can be transferred to the higher-earning spouse. For two earners both above their basic allowance, joint assessment almost always increases total tax: the lower-earning spouse's income gets pushed onto the higher-earning spouse's marginal brackets, and the HK$3,000 one-off reduction shrinks from two cases to one. To elect joint, both spouses complete BIR60 fully, tick joint assessment in Part 4.4 and both sign Part 13. The election is made annually.

How does the HK$3,000 one-off tax reduction work?

The 2026-27 Budget grants a 100% reduction of YOA 2025/26 final Salaries Tax (and tax under personal assessment), capped at HK$3,000 per case. If your final tax is below HK$3,000 it is fully eliminated; if above, the reduction is fixed at HK$3,000. Married couples electing joint assessment count as one case (one HK$3,000 cap, not HK$3,000 per spouse), which is one of the reasons separate assessment usually pays better. The reduction applies only to final tax — your provisional Salaries Tax for YOA 2026/27 is not reduced. About 2.12 million taxpayers benefit; the measure costs about HK$5.8 billion in foregone revenue.

What is provisional Salaries Tax and why am I paying next year's tax now?

Provisional Salaries Tax is an estimated prepayment for the following year of assessment, normally based on the current year's net chargeable income. If your YOA 2025/26 final tax is HK$55,500, the YOA 2026/27 provisional tax is also set at HK$55,500 by default, payable in two instalments: 75% due around January 2027 and 25% around April 2027. When YOA 2026/27 actual income is assessed, the provisional tax already paid is credited against the final tax. If you expect next year's net chargeable income to be at least 10% lower than this year's (job change, retirement, extended unpaid leave, etc.), you can apply for a holdover under IRO s.63E in writing no later than 28 days before the due date.

When is the BIR60 deadline for the 2025/26 return?

The IRD issued YOA 2025/26 BIR60 individual tax returns on 4 May 2026. Paper returns are due back by 3 June 2026 (one month from issue). Filing electronically via eTAX automatically extends the deadline by one month to 3 July 2026. Sole proprietors of unincorporated businesses get an extended deadline of 3 August 2026. Late filing carries a starting penalty of HK$1,200, plus interest and a possible compound penalty. The recommended workflow is to run the calculator in mid-May, gather supporting documents (rent receipts, mortgage interest statements, TVC contribution slips, donation receipts) and file via eTAX before mid-June.

Is Salaries Tax different from Personal Assessment? Which should I pick?

Salaries Tax covers employment income only. Personal Assessment (PA) is an optional consolidated regime that combines all your taxable Hong Kong income — salary, rental income from let property, sole-proprietor business profits — and applies the progressive 2%-17% rates to the aggregate. For a salary-only earner there is no difference, so PA is unnecessary. But if you also have rental income (otherwise taxed under Property Tax at a flat 15%) or self-employment profits (Profits Tax 15%), electing PA lets those incomes enjoy the lower 2% and 6% brackets and lets you claim mortgage interest against rental. This calculator covers Salaries Tax only; if you have meaningful rental or business income, also run IRD's official PA tool.

Is this calculator free? How accurate is it for an expat or HR user?

The calculator is free with no signup. All formulas, brackets, allowances and the HK$3,000 reduction cap follow IRD and the 25 February 2026 Budget exactly. For a standard salaried employee with cash income and ordinary allowances, results match IRD's own computation tool. What it does NOT do: automatically compute the 10% / 8% / 4% deemed rental value of employer-provided quarters (enter the figure your employer already shows on IR56B), time-apportion income for non-Hong-Kong-sourced employment, handle back-pay relating to earlier years, or compute Personal Assessment with rental and business income. For non-standard cases — newly arrived expats with employment income partly outside Hong Kong, dual-employment arrangements, or generous fringe benefits — get the IRD assessment notice or a registered tax adviser to confirm the figure.

What allowances are changing in YOA 2026/27?

The 2026-27 Budget announced on 25 February 2026 proposes, from YOA 2026/27 onwards: basic allowance HK132,000 → HK145,000; married person's allowance HK264,000 → HK290,000; child allowance HK130,000 → HK140,000 (additional year-of-birth allowance also rises, and the additional newborn allowance extends from 1 year to 2 years post-birth, meaning up to HK$280,000 over two years per newborn); dependent parent 60+ HK$50,000 → HK$55,000; dependent parent 55-59 HK$25,000 → HK$27,500; single parent allowance HK$132,000 → HK$145,000; elderly residential care deduction ceiling HK$100,000 → HK$110,000. These amounts remain subject to enactment of the Inland Revenue (Amendment) Ordinance, expected to be gazetted by June 2026. The calculator offers a YOA 2026/27 preview option clearly flagged as pending legislation.

Hong Kong Salaries Tax glossary

Net Chargeable Income (NCI)

Assessable income minus MPF, allowable deductions, AND the 9 personal allowances. NCI is the basis for the progressive rates (2%-17%). If NCI is zero or negative, no Salaries Tax is payable under the progressive method.

Net Income (NI)

Assessable income minus MPF and allowable deductions, but BEFORE personal allowances. NI is the basis for the two-tier standard rate (15% on first HK$5,000,000, 16% on the remainder).

Progressive rates

5-bracket marginal scale: 2% on the first HK$50,000 of NCI, 6% on the next HK$50,000, 10% on the next HK$50,000, 14% on the next HK$50,000, and 17% on the remainder. The 5-bracket scale (split from the previous 4-bracket version) has applied since YOA 2024/25.

Standard rate

Two-tier flat rate applied to Net Income from YOA 2024/25 onwards: 15% on the first HK$5,000,000 and 16% on the remainder. The IRD calculates both progressive and standard rates and charges the lower of the two — no election required.

MPF mandatory employee contribution

Hong Kong's Mandatory Provident Fund mandatory employee contribution is 5% of monthly relevant income, capped at HK$1,500/month (HK$18,000/year) since 1 June 2014 (MPFA). Fully tax-deductible against assessable income. Employees with monthly relevant income below HK$7,100 are exempt from the employee mandatory contribution (the employer still pays 5%).

TVC (Tax-Deductible Voluntary Contributions)

Introduced in YOA 2019/20. MPF members can make additional voluntary contributions to a designated TVC account; combined with qualifying deferred annuity premiums these enjoy a tax-deductible cap of HK$60,000 per year of assessment, per individual (not per couple). Withdrawals normally locked until age 65.

Joint / Separate Assessment

Two filing methods for married couples. Separate is the IRD default and almost always optimal for two earners both above their own basic allowance. Joint helps when one spouse earns below their own basic allowance because unused allowance transfers to the higher earner. Joint counts as a single case for the HK$3,000 one-off reduction.

Personal Assessment (PA)

An optional consolidated regime — not a separate tax — that aggregates Salaries Tax, Property Tax and Profits Tax incomes onto a single set of progressive 2%-17% brackets. PA is usually beneficial only for filers with substantial rental or self-employed income; for pure employees, PA gives the same result as Salaries Tax alone.

Provisional Salaries Tax

An advance payment for the following year of assessment, estimated from the current year's net chargeable income. Payable in two instalments (75% and 25%). If next year's NCI is expected to fall at least 10% below the current year's, the taxpayer can apply for a holdover under IRO s.63E in writing.

One-off tax reduction

Announced in the 2026-27 Budget on 25 February 2026: a 100% reduction of YOA 2025/26 final Salaries Tax and tax under personal assessment, capped at HK$3,000 per case. Joint-assessment couples count as one case, so HK$3,000 — not HK$3,000 per spouse. Does not reduce provisional tax.

Rental value of quarters

When an employer provides accommodation free or below market, the IRD adds a statutory percentage of post-deduction income to assessable income — 10% for a flat or house, 8% for a 2-room hotel-type accommodation, and 4% for a 1-room hotel-type accommodation. The employer normally pre-computes the figure on the IR56B; the employee enters it directly without recomputing.

Content verified by the Smart Calculators Team