Salaries Tax Progressive 2027 vs Standard Calculator HK
The Inland Revenue Department (IRD) charges Hong Kong salaries tax at the LOWER of two methods — progressive (2% to 17% on net chargeable income after allowances) and standard (15% to 16% on net total income with no allowances above HKD 5,000,000). This 2027 calculator runs both and shows which method is cheaper for you, plus the exact saving.
Personal HKD 132K + MPF HKD 18K + spouse + child allowances.
Each adds HKD 130K allowance (2026/27).
How HK Salaries Tax Works in 2027
Hong Kong's IRD calculates salaries tax using two parallel methods and charges the LOWER. Method 1 — Progressive: net chargeable income (income minus all allowances and deductions) is taxed at 2% on the first HKD 50,000; 6% on the next HKD 50,000; 10% on the next HKD 50,000; 14% on the next HKD 50,000; 17% on the remainder. Method 2 — Standard: net total income (income minus deductions only, no personal allowances) is taxed at 15%; from 2025/26 a two-tier standard rate applies — 15% on first HKD 5,000,000 of net income, 16% on the rest. Method 2 always wins for high earners with low allowances. Last updated: 2026-05-18. Source: IRD GovHK.
Worked Example — HKD 800,000 Single Earner
A single Hong Kong taxpayer earning HKD 800,000 with HKD 252,000 in allowances and deductions: Progressive — net chargeable income = HKD 548,000. Tax = HKD 1,000 + HKD 3,000 + HKD 5,000 + HKD 7,000 + HKD 58,820 = HKD 74,820. Standard — net total income = HKD 800,000 − HKD 18,000 (MPF only) = HKD 782,000. Tax = HKD 117,300 at 15%. Progressive wins by HKD 42,480. After the 2027 tax reduction (HKD 1,500 cap), final progressive tax is HKD 73,320. The break-even where standard becomes cheaper is around HKD 1.3M income for a single filer with typical allowances.
When the Standard Rate Wins
The standard rate becomes cheaper when: (1) Income exceeds HKD 1.3M–1.5M with no children. (2) You have minimal allowances (no spouse, no children, no elderly parents). (3) Income includes large bonuses pushing the marginal progressive rate above 17%. (4) Your charitable donations and approved deductions are small. The two-tier standard rate that adds 16% above HKD 5M makes top earners pay slightly more from 2025/26 onwards. Anyone earning HKD 6M+ should run both methods yearly — the saving from electing the right method can exceed HKD 50,000.
Practical Year-End Planning Tips
For 2027 maximise allowances by year-end: (1) Time TVC and QDAP contributions before 31 March 2028 to claim HKD 60,000 deduction. (2) Bundle elderly care payments — HKD 100,000/year deductible per dependent. (3) Track approved charitable donations — up to 35% of assessable income deductible. (4) Married couples should test joint assessment — useful when one spouse earns much less. (5) Don't forget MPF mandatory contributions (HKD 18,000/year) and TVC of up to HKD 60,000. The IRD calculator at gov.hk runs both methods automatically; submit via eTAX before the filing deadline (typically end of June).