Hong Kong Profits Tax 8.25% 2026 Calculator
Hong Kong profits tax 2026: two-tier system. Corporations: 8.25% on first HK$2M assessable profits, 16.5% above. Unincorporated business (partnership): 7.5% first HK$2M, 15% above. Trade group exemption: max one company per group benefits from tier 1.
Two-Tier Rate System
Effective from 2018/19. Tier 1 (50% concession) on first HK$2M of profits. Tier 2 (normal rate) above. Designed to support SMEs.
Corporation vs Unincorporated
Corporation: 8.25% / 16.5%. Unincorporated (sole prop, partnership): 7.5% / 15% — 1 percentage point lower.
Group Election
If multiple connected entities (50%+ common control), only ONE may elect Tier 1 rate. Others taxed at full Tier 2.
Source and Disclaimer
ird.gov.hk Profits Tax. Two-tier rates confirmed for 2025/26 and 2026/27 — verify after each budget.
Source: ird.gov.hk Profits Tax. Last updated: May 2026.