Hong Kong Housing Allowance Tax Calculator
In Hong Kong, employer-provided accommodation is taxed at 10% of your other taxable income (the Rental Value, or RV), not the actual rent paid. Compare housing allowance vs cash salary and see your tax saving.
| Cash salary | — |
| + Rental Value (taxable) | — |
| Total taxable income (housing path) | — |
| Tax (housing path) | — |
| If cash equivalent instead | |
| Cash + actual rent value | — |
| Tax (cash path) | — |
| Tax saving from housing benefit | — |
Hong Kong's Inland Revenue Ordinance taxes employer-provided accommodation at a deemed Rental Value (RV) — typically 10% of your other taxable income, not the actual rent paid. For expat-style packages where the employer pays HK$30,000+/month rent, this can save HK$30,000+ in annual salaries tax compared to taking the equivalent cash.
How Rental Value Works
RV percentages: 10% for a flat or serviced apartment. 8% for two rooms (or other partial accommodation). 4% for a hotel room or two hotel rooms. RV is computed on net assessable income (salary plus other taxable benefits, minus allowable deductions like MPF mandatory contribution).
Why Housing Benefit Saves Tax
If your employer pays HK$360,000/year rent and your salary is HK$600,000, RV is HK$60,000 (10%), not HK$360,000. You're taxed as if you received HK$60,000 of housing benefit — saving tax on HK$300,000 of value. For senior expat packages this is the single largest tax-saving structure in HK.
Structuring the Contract Correctly
The housing benefit must be a true employer-provided benefit (rent paid by employer, employer holds the lease, employer reimburses rent against receipts) — not a disguised cash allowance. If IRD reclassifies it as cash, full amount is taxable. Get the employment contract and reimbursement policy right; consult a HK tax adviser for expat packages above HK$2M/year.
Last updated May 2026. Sources: IRD — Place of Residence, IRD Salaries Tax Rates.