HK Elderly Residential Care Expense Deduction 2026/27
Calculate the Hong Kong Elderly Residential Care Expense Deduction (Section 26D Inland Revenue Ordinance) for 2026/27. Up to HK$100,000 per dependent elderly parent/grandparent paid to residential care home. Stronger benefit than dependent parent/grandparent allowance for those choosing residential care. IRD Tax Return BIR60 Section 8.
Section 26D Elderly Residential Care
Deduction up to HK$100,000 per dependent in 2026/27 for residential care home fees paid for a parent or grandparent (yours or your spouse's) aged 60+ OR disabled (any age). Care home must be: (a) licensed under Residential Care Homes (Elderly Persons) Ordinance, or (b) located in mainland China and approved for HK residents. Mainland approval list maintained by Social Welfare Department.
Eligibility Criteria
Dependent must: (1) be parent/grandparent of taxpayer or spouse; (2) be aged 60+ at any time during the year, OR disabled (eligible for government disability allowance); (3) be normally resident in Hong Kong (mainland care homes recognized under approval list); (4) actually receiving care at the home; (5) fees actually paid by taxpayer (not refunded). Can claim for multiple elderly dependents — separate HK$100,000 cap each.
Interaction with Other Allowances
If you claim the elderly residential care deduction for a parent/grandparent, you CANNOT also claim the dependent parent / grandparent allowance for the same person in that year. Make a choice: residential care deduction (cap HK$100,000 actual fees deductible) vs allowance (HK$50,000-100,000 fixed). For high care fees, the deduction is more valuable. For lower fees (e.g. Keep: (1) Care home receipt with dependent's name, fees paid, and care home license. (2) Dependent's HK ID copy showing age. (3) Proof of relationship (birth certificate / marriage certificate). IRD may request documents during audit. False claims subject to penalty up to triple the underpaid tax + criminal prosecution. Maintain records for 6 years post-filing. Sources: IRD Inland Revenue Ordinance §26D, IRD Practice Note 19/2024, Social Welfare Department Residential Care Home List. Last updated: May 2026.Documentation
Frequently Asked Questions
What is the elderly residential care deduction?
§26D Inland Revenue Ordinance: deduction up to HK$100,000 per dependent elderly parent/grandparent for actual residential care home fees paid in the year. More beneficial than dependent parent allowance for those choosing residential care.
Who qualifies as 'dependent elder' for §26D?
Parent or grandparent of taxpayer or spouse, normally resident in HK (mainland care homes approved), aged 60+ during the year OR disabled (eligible for disability allowance), actually receiving care at the home, with fees paid by taxpayer.
Can I claim both this AND dependent parent allowance?
No — for the SAME elderly person, you must choose ONE per year. Allowance is HK$50,000-100,000 fixed; residential-care deduction is up to HK$100,000 of actual fees. For high fees > HK$50,000: deduction wins. For lower fees: allowance wins.
Are mainland China care homes eligible?
Yes — if on the Social Welfare Department's approved list. Maintained list of recognized mainland care homes. HK residents can claim §26D for parents/grandparents receiving care in approved mainland facilities. List updated annually by SWD.
What records do I need?
Care home receipt with dependent name, fees paid, and care home license. Dependent's HK ID copy showing age. Proof of relationship (birth certificate / marriage certificate). Maintain 6 years post-filing. IRD may audit and request documents.