HK Salaries Tax Calculator 2026/27
Calculate your Hong Kong salaries tax for the 2026/27 assessment year (income earned 1 April 2026 – 31 March 2027). Enter your annual income, filing status, children, and MPF contributions to see your progressive tax, standard rate tax, and the final liability — automatically choosing whichever is lower. Based on official ird.gov.hk 2026/27 rates.
Allowances & Deductions
| Annual Income | HK$0 |
| MPF Deduction | − HK$0 |
| Personal Allowance | − HK$0 |
| Net Chargeable Income | HK$0 |
Progressive Tax Bracket Breakdown
| Band | Rate | Taxable in Band | Tax |
|---|
How Hong Kong Salaries Tax Works in 2026/27
Hong Kong salaries tax is one of the lowest in the Asia-Pacific region, designed to attract international talent. For the 2026/27 assessment year (covering income earned between 1 April 2026 and 31 March 2027), the Inland Revenue Department (IRD) calculates your liability using two parallel methods and charges you whichever is lower.
The progressive method applies rates of 2%, 6%, 10%, 14%, and 17% to bands of net chargeable income — that is, your income after the Mandatory Provident Fund (MPF) deduction and all personal allowances. The standard rate method charges a flat 15% on your net income (income minus MPF only, with no allowances deducted). For most mid-range earners, the progressive method results in a lower bill; for very high earners, the standard rate cap at 15% becomes advantageous. This calculator handles both computations automatically. Source: ird.gov.hk — Salaries Tax.
Personal Allowances and Deductions for 2026/27
Understanding your allowances is key to reducing your salaries tax bill. The basic allowance for a single taxpayer is HK$132,000. If you are married and opting for joint assessment, you can claim the married person's allowance of HK$264,000 instead. For each dependent child (from the 1st through the 9th), you can claim HK$130,000 per child. In the year a child is born, an additional HK$130,000 is available as a newborn allowance on top of the standard child allowance for that child — making the first-year benefit HK$260,000 per newborn.
The Mandatory Provident Fund (MPF) deduction covers your mandatory contributions, calculated at 5% of relevant income up to a maximum deductible amount of HK$18,000 per year (based on a monthly income ceiling of HK$30,000, i.e., HK$360,000/year). Voluntary contributions above mandatory amounts are not deductible for salaries tax purposes.
Progressive Tax Bands vs Standard Rate — Which Applies?
The five progressive tax bands for 2026/27 are:
- First HK$50,000 of net chargeable income: 2%
- Next HK$50,000: 6%
- Next HK$50,000: 10%
- Next HK$50,000: 14%
- Remainder above HK$200,000: 17%
For comparison, the standard rate of 15% is applied to net income (income minus MPF), with no personal allowances deducted. A high-income earner with minimal allowances will often find the standard rate lower than the progressive rate on the upper portion of their income. The IRD charges whichever method produces the smaller tax bill — you do not need to choose or file separately for each method.
Tips to Reduce Your Hong Kong Salaries Tax
Several legitimate strategies can reduce your salaries tax liability. Making voluntary MPF contributions beyond the mandatory 5% will not provide additional salaries tax deductions, but approved charitable donations are deductible (subject to limits). Maximising approved self-education expenses (up to HK$100,000 per year for approved courses) is another valuable deduction not captured in this calculator — if eligible, add them to your net income figure before estimating here. Married couples should compare the tax outcomes of joint assessment versus separate assessments, as the optimal choice depends on each spouse's income level. Last updated: April 2026.
Frequently Asked Questions
What are Hong Kong's salaries tax rates for 2026/27?
Hong Kong uses progressive tax rates on net chargeable income: 2% on the first HK$50,000, 6% on the next HK$50,000, 10% on the next HK$50,000, 14% on the next HK$50,000, and 17% on the remainder. The standard rate of 15% applies to net income without personal allowances. You pay whichever is lower.
What is the basic allowance in Hong Kong for 2026/27?
The basic personal allowance for 2026/27 is HK$132,000. Married persons get an allowance of HK$264,000. Each child (1st through 9th) qualifies for HK$130,000 child allowance, with an additional HK$130,000 in the year of birth.
How does the MPF deduction work for salaries tax?
Mandatory Provident Fund (MPF) contributions are deductible for salaries tax purposes. The mandatory contribution rate is 5% of relevant income, subject to a maximum deductible contribution of HK$18,000 per year (based on the maximum relevant income cap of HK$360,000/year).
What is the standard rate vs progressive rate in HK tax?
Progressive tax applies rates of 2%–17% to net chargeable income (income minus MPF minus allowances). The standard rate of 15% applies to net income (income minus MPF, no allowances). The IRD automatically charges the lower of the two — usually the standard rate kicks in for higher earners.
Is salaries tax the same as income tax in Hong Kong?
Salaries tax is Hong Kong's tax on employment income, including salaries, wages, commission, bonuses, and the value of housing benefits. It is distinct from profits tax (for businesses) and property tax (for rental income). There is no general personal income tax — these three separate taxes cover different income types.
Who is exempt from Hong Kong salaries tax?
You are not liable for salaries tax if your net chargeable income after all allowances is zero or negative, meaning your total allowances exceed your assessable income. Also, visitors who work in Hong Kong for 60 days or fewer in a year are generally exempt from salaries tax on those earnings.