Rental Tax Deduction 2027 Calculator Hong Kong
Hong Kong's domestic rent deduction lets salaries tax payers reduce taxable income by up to HKD 100,000/year of rent paid for their primary residence (with proper stamped tenancy agreement). This 2027 calculator works out your eligible deduction, the tax saving at your marginal band, and the impact of having a child in the household (extra HKD 20,000 starting 2024/25).
HKD 15,000/mo × 12.
50% if shared with spouse on same agreement.
Adds HKD 20K/child (max 1 child boost) per 2024/25 rule.
Personal allowance, MPF etc.
How the HK Domestic Rent Deduction Works in 2027
The domestic rent deduction was introduced in 2022/23 to help tenants. From 2024/25 onwards, the base cap was raised to HKD 100,000/year, with an additional HKD 20,000 for taxpayers having at least one qualifying child living in the rented premises (single boost, not per child). To claim: (1) the property must be your primary residence; (2) the tenancy agreement must be stamped at IRD; (3) you must not own any residential property in Hong Kong; (4) the property cannot be granted under a Public Rental Housing scheme; (5) the lease must be in your name (or your spouse's name with joint election). Last updated: 2026-05-18. Source: IRD Domestic Rent Deduction e-Tax Guide.
Worked Example — HKD 15,000/Month Rent on HKD 600,000 Salary
A salaried taxpayer earning HKD 600,000/year pays HKD 15,000/month rent (HKD 180,000 annually) on her sole-name tenancy with no children. Eligible deduction: HKD 100,000 (capped). With HKD 150,000 of personal allowances and the new HKD 100,000 rent deduction: NCI = HKD 350,000. Progressive tax = HKD 1,000 + HKD 3,000 + HKD 5,000 + HKD 7,000 + HKD 25,500 = HKD 41,500. Without rent deduction: NCI = HKD 450,000. Tax = HKD 16,000 + HKD 17,000 = HKD 32,500 marginal + HKD 24,500 = HKD 58,500. Saving: HKD 17,000 cash. At her 17% marginal rate the deduction value is HKD 100,000 × 17% = HKD 17,000.
Who Cannot Claim — Five Disqualifying Situations
Watch out for these: (1) Owner of any residential property in HK (even a co-owned share) — disqualified entirely. (2) Tenant on Public Rental Housing — separately subsidised, no double dip. (3) Subletting (lessee leasing to you in turn) — only the head tenant claims; sub-tenants get nothing. (4) Tenancy not stamped at IRD — deduction denied entirely. (5) Provided rent reimbursement by employer — if your employer reimburses you, the reimbursement is taxable but the gross rent is then not deductible to avoid double-counting. Genuine arms-length tenancies with proper stamps and a clean ownership record are required.
2027 Strategy — Combining Rent with Other Deductions
To maximise 2027 deductions: (1) Stack the rent deduction with MPF Mandatory + TVC (HKD 18,000 + 60,000) and QDAP (within HKD 60,000 shared cap). (2) Personal allowance HKD 132,000 + spouse allowance HKD 132,000 + dependent children HKD 130,000 each. (3) Approved donations up to 35% of assessable income. A typical Hong Kong tenant earning HKD 600K with HKD 100K rent deduction, MPF HKD 18K, TVC HKD 60K, dependent child HKD 130K, and HKD 132K personal allowance ends up with NCI of just HKD 160K and tax of approximately HKD 8,000 — an effective rate of 1.3%.