HK Elderly Residential Care Expense Deduction 2026/27

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.

Documentation

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.