MPF TVC Tax Deduction Calculator HK
Calculate how much tax you can save with MPF Tax-Deductible Voluntary Contributions (TVC) in Hong Kong for the 2026/27 assessment year. Enter your annual income, filing status, and planned TVC amount to see your tax before and after TVC, the exact savings, and the optimal contribution for maximum benefit. Based on official mpfa.org.hk and ird.gov.hk 2026/27 rates.
Tax Comparison Breakdown
| Annual Income | HK$0 |
| Mandatory MPF Deduction | - HK$0 |
| Personal Allowance | - HK$0 |
| Other Deductions | - HK$0 |
| Net Chargeable Income (without TVC) | HK$0 |
| TVC Deduction | - HK$0 |
| Net Chargeable Income (with TVC) | HK$0 |
| Tax Saved | HK$0 |
Progressive Tax Brackets — Before vs After TVC
| Band | Rate | Tax Without TVC | Tax With TVC |
|---|
How MPF TVC Tax Deductions Work
A Tax-Deductible Voluntary Contribution (TVC) is a voluntary contribution you make to your MPF account on top of the mandatory 5% contribution. The Hong Kong government introduced TVC in April 2019 to encourage retirement savings. For the 2026/27 assessment year, you can deduct up to HK$60,000 per year in TVC from your taxable income, directly reducing your salaries tax or personal assessment liability. The deduction applies regardless of whether you use progressive rates or the standard 15% rate, though the actual savings depend on your marginal tax bracket. TVC must be made to a TVC account with an MPFA-registered trustee — contributions to occupational retirement schemes do not qualify. Source: mpfa.org.hk.
Maximizing Your TVC Tax Savings in 2026/27
Your TVC tax savings depend on your marginal tax rate — the rate applied to the last dollar of your net chargeable income. Hong Kong's progressive salaries tax bands for 2026/27 are 2%, 6%, 10%, 14%, and 17% on successive HK$50,000 bands of net chargeable income. If your net chargeable income falls in the 17% band, every HK$1 of TVC saves you HK$0.17 in tax — meaning the maximum HK$60,000 TVC yields HK$10,200 in annual tax savings. For taxpayers in the 10% band, the same HK$60,000 TVC saves HK$6,000. The key strategy is to contribute enough TVC to push your income down to the next lower tax bracket, then assess whether additional contributions still justify the locked-in retirement savings. This calculator shows you the optimal TVC amount where your marginal bracket changes. Source: ird.gov.hk.
TVC vs Other Tax-Deductible Investments in Hong Kong
Hong Kong offers several tax-deductible investment options beyond MPF TVC. Qualifying Deferred Annuity Premiums (QDAP) share the same HK$60,000 combined cap with TVC — so you can split the deduction between TVC and QDAP, but the total cannot exceed HK$60,000. Voluntary Health Insurance Scheme (VHIS) premiums are deductible up to HK$8,000 per insured person per year, separately from the TVC/QDAP cap. Charitable donations are deductible up to 35% of your assessable income. The advantage of TVC over QDAP is flexibility: TVC has no minimum contribution period and you can transfer your TVC account between trustees. However, TVC funds are locked until age 65 (with limited exceptions), while QDAP provides annuity income from the chosen start date. For most taxpayers earning above HK$400,000, maximizing the HK$60,000 TVC deduction is one of the most straightforward ways to reduce salaries tax. Last updated: April 2026.