Hong Kong Salaries Tax 2027/28 Marginal Rate Calculator
Hong Kong Salaries Tax 2027/28 uses the lower of two methods: progressive marginal rates (2%-17%) or standard rate (15% / 16%). This calculator runs both and shows the cheaper option (source: ird.gov.hk).
| Annual income | — |
| Net assessable income | — |
| Total allowances | — |
| Net chargeable income | — |
| Progressive method tax | — |
| Standard rate method tax | — |
| Final tax payable | — |
| Cheaper method | — |
How HK Salaries Tax Works
Hong Kong uses a two-tier comparison for Salaries Tax. The progressive method applies 2%/6%/10%/14%/17% on HK$50,000 income bands after personal allowances. The standard rate method applies 15% on the first HK$5,000,000 of net assessable income (no allowances) and 16% above. The IRD computes both and charges the LOWER amount — automatically, no taxpayer election needed (source: ird.gov.hk/eng/tax/ind_sat).
Allowances and Deductions 2027/28
Basic allowance: HK$132,000 single, HK$264,000 married. Child allowance: HK$130,000 per child in the year of birth and HK$130,000 each subsequent year (up to age 18, or 25 if studying). Dependent parent allowance: HK$50,000 per parent under 60, HK$100,000 if 60 or older. Home loan interest: deduct up to HK$100,000/year for the principal residence (15-year maximum).
MPF Contribution Deduction
Mandatory MPF contributions (5% of relevant income, capped at HK$1,500/month or HK$18,000/year) are fully deductible. Tax-deductible voluntary contributions (TVC) on top deduct up to HK$60,000/year (combined with QDAP). TVC counts on top of mandatory — total MPF deduction up to HK$78,000 per year.
Provisional Tax and Payment Schedule
IRD issues Salaries Tax assessments around November of the year following the tax year. Payment in two installments: 75% by January, 25% by April. Provisional tax for the next year is computed on the prior year's bill. Last updated: May 2026.
Source: ird.gov.hk/eng/tax/ind_sat.htm — Allowances, Deductions and Tax Rate Table