Hong Kong Home Loan Interest Deduction Calculator 2026/27

Calculate your Home Loan Interest deduction against Hong Kong Salaries Tax for the year of assessment 2026/27. Handles the HKD 100,000 standard cap, the additional HKD 20,000 child concession (introduced from 2024/25), the 20-year lifetime limit, joint-owner proration, and tax saved at progressive vs standard rate. Free, private, runs entirely in your browser.

Property & Loan
Total interest you paid in the year of assessment 2026/27 on the home loan.
Must be your principal place of residence in Hong Kong. Investment / rental property uses Property Tax rules instead.
For joint owners, the HKD 100,000 cap is shared in proportion to ownership.
Lifetime cap is 20 years of assessment. Years prior to 2026/27 you have already claimed.
Child Concession (2024/25 onwards)
Budget 2024/25 introduced an extra HKD 20,000 cap when an unmarried child under 18 (or under 25 in full-time education) resides in the dwelling.
Tax Rate
Used to estimate tax saved at progressive rate. We also show standard rate (15% / 16%) comparison.
IRD applies whichever method gives lower tax. Standard rate splits at HKD 5M from 2024/25.
Deductible interest (2026/27)
HK$0
Cap applied (HKD)
HK$0
Tax saved at chosen rate
HK$0
Years of assessment remaining
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Calculation Breakdown
Step Amount (HKD)
2026/27 HK Home Loan Interest Deduction rules: The standard maximum deduction is HKD 100,000 per year of assessment under section 26E of the Inland Revenue Ordinance (Cap. 112). The additional HKD 20,000 child-related concession was introduced from 2024/25 (see Budget 2024-25 paragraph 31) when an unmarried child under 18 (or under 25 in full-time education) resides in the dwelling. The dwelling must be your principal place of residence in Hong Kong and you must be the sole or joint owner. Lifetime entitlement is 20 years of assessment, not necessarily consecutive.

Source: Inland Revenue Department (ird.gov.hk) — Home Loan Interest Deduction + Salaries Tax 2026/27. Verify the final 2026/27 figures (cap and child concession) with the IRD website and the Budget 2026-27 announcement before filing. Last updated: May 3, 2026.
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What Is the Hong Kong Home Loan Interest Deduction?

The Home Loan Interest (HLI) deduction is a Hong Kong Salaries Tax / Personal Assessment relief under section 26E of the Inland Revenue Ordinance (Cap. 112). It allows owner-occupiers to deduct mortgage interest paid on a home loan secured against a dwelling that is their principal place of residence in Hong Kong. For the year of assessment 2026/27, the standard maximum deduction is HKD 100,000, with an additional HKD 20,000 concession when an eligible child resides in the property (introduced in Budget 2024-25). The deduction directly reduces your net assessable income before tax is computed. Source: IRD Home Loan Interest Deduction.

Eligibility requirements: (1) you must be the sole or joint legal owner of the dwelling; (2) the dwelling must be in Hong Kong and used as your principal place of residence during the year of assessment; (3) the loan must be secured by a mortgage or charge over that dwelling, and used for acquiring it; (4) the lender must be a recognised institution (bank, finance company, the Government, or your employer). Loans from family or friends generally do not qualify.

The 20-Year Lifetime Cap and Years Already Claimed

HLI deduction has a lifetime entitlement of 20 years of assessment. The 20 years do not have to be consecutive — you can skip years if the property is rented out, you move overseas, or you deliberately defer. But once 20 years of HLI have been claimed against any dwelling (even different properties), the entitlement is exhausted permanently. Most homeowners use this against their first mortgage in the early high-interest years; couples often coordinate so the lower-rate spouse claims first and the higher-rate spouse uses the remaining years.

Strategic implication: in years where your interest paid is low (e.g. small remaining balance, low rate), it may be worth electing not to claim HLI to preserve a year for a future high-interest period. The election is made annually in the Tax Return — Individuals (BIR60), and the IRD does not auto-claim it for you.

Joint Ownership and How the Cap Is Shared

For jointly-owned property, the HKD 100,000 cap (and the HKD 20,000 child concession) is shared between owners in proportion to ownership shares. A 50/50 husband-and-wife ownership splits as HKD 50,000 each. Each owner separately claims their share against their own salaries tax — and each separately uses one year of their 20-year lifetime entitlement. That means a couple jointly owning a property exhausts 40 owner-years total over 20 years of joint occupation.

If you own jointly and only one spouse has Hong Kong salaries (the other works overseas, is retired, or has no taxable income), the working spouse can claim only their own proportional share — the unused share of the non-working spouse cannot be reallocated. In that case, structuring ownership as 100% in the working spouse's name (rather than 50/50) preserves the full HKD 100,000 deduction. Discuss with a tax advisor before any conveyancing — Stamp Duty implications apply.

Child Concession and the Standard-Rate Trade-Off

From the year of assessment 2024/25 onwards, an additional HKD 20,000 deduction applies when an unmarried dependent child under 18 (or under 25 receiving full-time education at a recognised institution) resides in the dwelling. This is on top of the HKD 100,000 standard cap, raising the maximum to HKD 120,000 per year of assessment for qualifying families. This calculator applies the bonus when you select "yes" in the child concession dropdown above. Verify final 2026/27 thresholds against the Budget 2026-27 announcement.

Note: HLI deduction only benefits taxpayers under the progressive rate (2%–17%). Under the 15%/16% standard rate, only specific deductions (charitable donations, MPF/RORS contributions, elderly residential care expenses, qualifying premiums) apply — HLI does NOT reduce standard-rate tax. The IRD computes both methods and applies whichever yields lower tax, so HLI matters most for top-bracket progressive-rate taxpayers below the HKD 5M income threshold. This tool is for planning only — verify with the IRD or a Hong Kong CTA before filing your BIR60. Last updated: May 3, 2026.