Hong Kong Personal Assessment Calculator 2026/27

Compare HK Personal Assessment (combining salaries tax, property tax, and profits tax in one progressive computation) vs separate assessments. Personal Assessment often reduces tax for taxpayers with mortgage interest, rental losses, or low business profits because allowances and progressive rates apply once. Per IRD Inland Revenue Ordinance §41-43.

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When Personal Assessment Helps

Personal Assessment aggregates Salaries Tax + Property Tax + Profits Tax into one progressive computation taxed at lower of (a) progressive rates after allowances, or (b) standard rate 15%. Helps when: (1) mortgage interest paid on rental property — deductible under PA but not under separate property tax; (2) rental loss can offset salary; (3) business start-up loss; (4) you have unused personal allowances. Elect via Tax Return BIR60 box 6.1.

Allowances 2026/27

Basic allowance: HK$132,000. Married couple: HK$264,000. Child (each): HK$130,000 (1st-9th); +HK$130,000 in year of birth. Dependent parent / grandparent: HK$50,000-$100,000 each depending on age + cohabitation. Single parent: HK$132,000. Disabled dependant: HK$75,000. These full allowances available only under salaries tax / Personal Assessment (not under separate property tax).

Progressive vs Standard Rate

Progressive (after allowances): 2% first $50K, 6% next $50K, 10% next $50K, 14% next $50K, 17% on remainder. Standard rate: 15% on net income (no allowances). 2026/27 Budget added a 16% rate band for net income over HK$5M (top earners only). IRD computes both and applies the lower. Most middle-income taxpayers benefit from progressive.

Election Procedure

Tick box 6.1 on Tax Return - Individuals (BIR60). Available to: HK residents and any individual ordinarily resident in HK who is at least 18, or if married, whose spouse is permanently or ordinarily resident. Election binds for the year of assessment. May elect or revoke up to 6 years after the assessment year. IRD will compute the lower of PA or separate assessments and refund any overpayment.

Sources: HK Inland Revenue Ordinance Cap. 112 §41-43, IRD Departmental Interpretation Practice Note 2/2024, IRD Tax Return Guide 2026/27. Last updated: May 2026.