Hong Kong Salaries Tax 2027 Calculator — IRD Standard & Progressive

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.