Hong Kong Profits Tax 8.25% 2026 Calculator
Hong Kong profits tax under the two-tiered rates regime, which applies from the year of assessment 2018/19 onwards (including 2026/27). Corporations: 8.25% on the first HK$2,000,000 of assessable profits and 16.5% on the rest. Unincorporated businesses (mostly partnerships and sole proprietorships): 7.5% on the first HK$2,000,000 and 15% on the rest. Among connected entities, only one nominated entity can use the two-tiered rates.
Two-Tiered Rates
For corporations, the first HK$2,000,000 of assessable profits is taxed at 8.25% (half the normal rate) and the remainder at 16.5%. For unincorporated businesses, the first HK$2,000,000 is taxed at 7.5% (half the standard rate) and the remainder at 15%. Example: a corporation with HK$3,500,000 of assessable profits pays HK$165,000 + HK$247,500 = HK$412,500.
Connected Entities
If an entity has one or more connected entities at the end of its basis period, the two-tiered rates apply only to the one entity nominated to be chargeable at those rates. The others pay 16.5% (corporations) or 15% (unincorporated businesses) on all their assessable profits. The election is made in the tax return and is irrevocable for that year.
What This Calculator Does Not Include
It does not deduct one-off tax reductions. For example, 100% of the 2025/26 profits tax is waived subject to a ceiling of HK$3,000 per case. It also does not work out assessable profits from your accounts — enter the figure after adjustments.
Source and Disclaimer
Rates are the ones the Inland Revenue Department publishes for the year of assessment 2018/19 onwards. Estimates only — not tax advice.
Source: GovHK — Tax Rates of Profits Tax and IRD — Two-tiered Profits Tax Rates Regime FAQ. Last updated: October 2026.