Hong Kong Salaries Tax 2027 Calculator — IRD Standard & Progressive
Calculate Hong Kong Salaries Tax for the year of assessment 2027/28 (year 2027) — IRD picks the lower of progressive bands or the 15% standard rate on net income.
Standard vs Progressive Rates
Hong Kong's IRD calculates tax both ways: progressive bands of 2%, 6%, 10%, 14%, 17% on net chargeable income — OR a flat 15% standard rate on net total income (no allowances deducted). You pay whichever is lower. High earners hit the standard rate first.
Basic & Dependent Allowances
For 2027 the basic allowance is HK$132,000 (single). Married allowance: HK$264,000. Each dependent parent (60+) adds HK$50,000–100,000 depending on if they live with you. Children: HK$130,000 each first nine, HK$130,000 in year of birth bonus.
MPF Mandatory Contribution Deduction
Mandatory MPF contributions up to HK$18,000/year are tax-deductible. TVC (Tax-Deductible Voluntary Contributions) add another HK$60,000/year cap shared with QDAP (qualifying deferred annuity policies).
Provisional Tax
After your first year, IRD assesses provisional tax for the following year equal to actual tax just assessed. Pay in two installments (Jan + April). Pay-Now-File-Later means many taxpayers fund forward without realising.
Source: ird.gov.hk salaries tax rates 2026/27 indexed forward. Last updated: May 2026.
Frequently Asked Questions
Why does IRD use both methods?
To cap the effective tax at 15%. The progressive bands rise to 17% top rate, but if applying them produces more than 15% of net total income, the standard rate kicks in instead. Mid-income taxpayers use progressive; high earners (over ~HK$2M) typically pay standard.
Can I claim my parents as dependents?
Yes if they are aged 55+, ordinarily resident in Hong Kong, and you contribute at least HK$12,000/year to their support. Allowance: HK$25,000–50,000 for ages 55-59, HK$50,000–100,000 for 60+.
What is the MPF contribution cap?
Mandatory contributions are 5% of relevant income up to HK$30,000/month, so HK$1,500/month max = HK$18,000/year, all deductible against salaries tax.
Is rental income taxed under salaries tax?
No. Rental from HK property is taxed under separate Property Tax at 15% of net assessable value. Combine with salaries via Personal Assessment if beneficial.
Is my data private?
Yes. All calculations run in your browser. Income, contribution and asset data are never sent, stored, or shared.