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.
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.
Frequently Asked Questions
What is HK Personal Assessment?
Optional tax computation that aggregates salaries + property + profits in one progressive calculation with full personal allowances. Often saves tax for those with mortgage interest, rental losses, or low business profits. Elect via box 6.1 on BIR60.
When does Personal Assessment NOT help?
When you have only salary income (PA = salaries tax). When standard rate (15%) already applies because income is very high. When you have no allowances to offset (single, no dependents) AND business profits are taxed at 8.25% half-rate (lower than salaries tax progressive top rate of 17%).
Can mortgage interest on rental property be deducted under PA?
Yes — interest paid to finance rental property is deductible under Personal Assessment (not under separate property tax). Limited to actual interest paid in the assessment year. Capped at rental income for that property unless excess is allowed under PA aggregation.
Who can elect PA?
HK resident or ordinarily resident individuals (18+) and married couples where at least one spouse is HK resident. Non-residents can elect PA only on HK-source income. Election binds for the year — may revoke or apply up to 6 years after the assessment year.
What is the basic allowance for 2026/27?
HK$132,000 single; HK$264,000 married couple. Child allowance: HK$130,000 each (1st-9th child), with extra HK$130,000 in year of birth. Dependent parent allowance: HK$50,000-$100,000 depending on age and whether parent resides with taxpayer.