🧩 Hong Kong Tax Calculator 2025 🧩
Fast & Accurate Tax Estimates for Hong Kong Residents
Understanding the Hong Kong Tax System for 2025
The hk tax calculator provided here helps individuals estimate their salaries tax liability for the Year of Assessment 2025/26 (covering income from April 1, 2025 to March 31, 2026). Hong Kong’s tax system is known for being simple and low-rate, making it one of the most competitive tax jurisdictions globally.
Key Features of Hong Kong’s Tax System
- Progressive tax rates ranging from 2% to 17%
- Two-tiered standard rate: 15% on first HK$5 million, 16% thereafter
- Tax charged at the lower of progressive rates or standard rate
- Territorial basis – only Hong Kong sourced income is taxable
- No tax on dividends, capital gains, or foreign-sourced income
Why Use Our HK Tax Calculator?
- Updated with latest 2025/26 tax rates and allowances
- Accurate calculation of progressive vs. standard rate tax
- Comprehensive deductions and allowances
- Visual breakdown of your tax liability
- Easy to use and mobile-friendly interface
🧮 Hong Kong Tax Calculator 2025
Use our accurate hk tax calculator to estimate your tax liability for the 2025/26 assessment year. Input your details below to get started.
Understanding Hong Kong’s Tax System in 2025
The Hong Kong tax system is one of the simplest and most competitive in the world. Our hk tax calculator is designed to help you navigate the tax regulations for the 2025/26 assessment year. Here’s what you need to know about how taxes work in Hong Kong:
Progressive Tax Rates vs. Standard Rate
In Hong Kong, salaries tax is calculated in two ways, and you pay the lower amount:
Progressive Tax Rates
Applied to your net chargeable income (after deductions and allowances)
| Net Chargeable Income | Rate |
|---|---|
| First HK$ 50,000 | 2% |
| Next HK$ 50,000 | 6% |
| Next HK$ 50,000 | 10% |
| Next HK$ 50,000 | 14% |
| Remainder | 17% |
Two-tiered Standard Rate
Applied to your net income (after deductions but before allowances)
| Net Income | Rate |
|---|---|
| First HK$ 5,000,000 | 15% |
| Remainder | 16% |
Assessment Year and Payment Schedule
The Hong Kong tax year, known as the Year of Assessment, runs from April 1 to March 31. For the 2025/26 assessment year, this covers income earned from April 1, 2025, to March 31, 2026.
Tax payments in Hong Kong typically follow this schedule:
- Provisional tax is usually paid in two installments
- The first installment is due around December/January
- The second installment is due around April/May of the following year
- Final tax assessment happens after you file your tax return
- Any difference between provisional tax paid and final assessment will be adjusted
Territorial Principle of Taxation
Hong Kong follows a territorial principle of taxation. This means only income sourced from Hong Kong is subject to tax. Foreign-sourced income is generally not taxable in Hong Kong, even if it’s remitted to Hong Kong. This makes the hk tax calculator particularly useful for those who need to determine their Hong Kong tax liabilities on local income.
Important Considerations
- If you worked both in and outside Hong Kong, only the portion of income attributable to services rendered in Hong Kong is taxable
- Special rules apply for certain occupations like aircrew and sea crew
- Certain types of income like dividends and capital gains are not taxable in Hong Kong
- Tax treaties with other countries may affect your tax obligations
Maximizing Your Tax Deductions in Hong Kong
Understanding available deductions is crucial to minimizing your tax liability. Our hk tax calculator incorporates all these deductions to give you the most accurate estimate. Here’s a comprehensive guide to tax deductions in Hong Kong for 2025/26:
Allowances for 2025/26
| Type of Allowance | Amount (HK$) |
|---|---|
| Basic Allowance | 132,000 |
| Married Person’s Allowance | 264,000 |
| Child Allowance (each child) | 130,000 |
| Additional Child Allowance (year of birth) | 130,000 |
| Dependent Parent/Grandparent (aged 60+) | 50,000 |
| Dependent Parent/Grandparent (aged 55-59) | 25,000 |
| Additional Dependent Parent/Grandparent (living with taxpayer, aged 60+) | 50,000 |
| Additional Dependent Parent/Grandparent (living with taxpayer, aged 55-59) | 25,000 |
| Dependent Brother/Sister | 37,500 |
| Single Parent | 132,000 |
| Personal Disability | 75,000 |
| Disabled Dependant | 75,000 |
Deductions (Maximum Limits)
| Type of Deduction | Maximum Amount (HK$) |
|---|---|
| Self-Education Expenses | 100,000 |
| Elderly Residential Care Expenses | 100,000 (per dependant) |
| Home Loan Interest (Basic) | 100,000 |
| Home Loan Interest (Additional) | 20,000 |
| Mandatory Contributions to MPF | 18,000 |
| Qualifying VHIS Premiums | 8,000 (per insured person) |
| Annuity Premiums & Tax Deductible MPF Voluntary Contributions | 60,000 |
| Domestic Rent (Basic) | 100,000 |
| Domestic Rent (Additional) | 20,000 |
| Approved Charitable Donations | 35% of assessable income |
| Expenses on Assisted Reproductive Services | 100,000 |
Understanding Key Deductions
Mandatory MPF Contributions
Employees contribute 5% of their monthly income (capped at HK$1,500 per month or HK$18,000 per year) to the Mandatory Provident Fund (MPF). This amount is fully deductible for tax purposes.
Home Loan Interest
Interest paid on home loans for a property in Hong Kong used as your primary residence is deductible, up to HK$100,000 per year (basic) plus an additional HK$20,000 if applicable. The deduction is available for a maximum of 20 years.
Self-Education Expenses
Costs for courses that enhance skills related to your current employment are deductible up to HK$100,000. This includes tuition fees for approved courses and examination fees.
Voluntary Health Insurance Scheme (VHIS)
Premiums paid for qualifying VHIS policies are eligible for tax deduction, up to HK$8,000 per insured person per year. This applies to policies for yourself, spouse, and specific relatives.
Qualifying Annuity Premiums & MPF Voluntary Contributions
You can claim tax deductions for qualifying annuity premiums and tax deductible MPF voluntary contributions, up to a combined maximum of HK$60,000 per year.
Charitable Donations
Donations to approved charitable organizations are deductible up to 35% of your assessable income after expenses. Make sure the organization has tax-exempt status under section 88 of the Inland Revenue Ordinance.
Domestic Rent Deduction
New for 2024/25 onwards, you can claim a deduction for rent paid for a dwelling used as your principal place of residence in Hong Kong, up to HK$100,000 (basic) plus an additional HK$20,000 if applicable.
Tax Planning Tips
- Keep all receipts and documentation for deductions you plan to claim
- Consider making charitable donations before the end of the tax year
- If you’re married, compare filing individually versus joint assessment
- Maximize your MPF voluntary contributions for additional tax savings
- Use our hk tax calculator to compare different scenarios
Frequently Asked Questions
Get answers to common questions about Hong Kong’s tax system and using our hk tax calculator.
Who needs to pay salaries tax in Hong Kong?
Anyone earning income from an office, employment, or pension in Hong Kong may be liable for salaries tax. However, if all your services are rendered outside Hong Kong, you may be exempt from salaries tax.
How is the tax calculated if I’m married?
Married couples can choose to be assessed separately (each on their own income) or jointly (combining both incomes). Our hk tax calculator can help you determine which option results in lower overall tax.
What is personal assessment?
Personal assessment allows you to combine different sources of income (employment, business profits, property income) and be taxed at progressive rates with all personal allowances. This can sometimes result in a lower tax bill if you have multiple income streams.
Are foreigners taxed differently in Hong Kong?
No, the same tax rules apply to residents and non-residents. However, for non-residents, only income derived from Hong Kong is taxable. The hk tax calculator works the same way for everyone earning income in Hong Kong.
When do I need to file my tax return?
Tax returns are typically issued in early May each year and should be filed within one month. If you file electronically, you may get a two-week extension.
Can I claim deductions for working from home?
Generally, expenses related to working from home are not deductible unless they are wholly, exclusively, and necessarily incurred in the production of your assessable income and not reimbursed by your employer.
What is the 60-day rule for tax in Hong Kong?
If you stay in Hong Kong for not more than 60 days in a year of assessment, income derived from services rendered during that period may be exempt from salaries tax.
How accurate is your hk tax calculator?
Our calculator uses the latest 2025/26 tax rates, allowances, and deductions to provide a highly accurate estimate of your tax liability. However, it’s always advisable to consult with a professional tax advisor for personalized advice.
Need More Help with Your Taxes?
Our hk tax calculator provides a good estimate, but everyone’s tax situation is unique. Consider exploring these additional resources:
Official IRD Tax Calculator
Use the Hong Kong government’s official tax computation service for verification.
Tax Rates & Tables
Check the latest tax rates, allowances, and deductions from the Inland Revenue Department.
Deductions Guide
Learn more about eligible deductions to maximize your tax savings.
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