HK Stamp Duty Calculator 2026 — Property Tax

What Is Hong Kong Stamp Duty on Property?

Hong Kong stamp duty is a transaction tax levied by the Inland Revenue Department (IRD) on the purchase or transfer of immovable property. The duty is calculated on the higher of the consideration paid or the market value of the property. Since 28 February 2024, the stamp duty landscape has been significantly simplified: the Ad Valorem Stamp Duty (AVD) is the only duty payable on residential purchases, with the rate depending on whether the buyer is a first-time Hong Kong permanent resident (HKPR) or a non-first-time buyer. The Buyer's Stamp Duty (BSD) for non-permanent residents and companies was fully abolished. All rates on this page are based on official ird.gov.hk schedules. Last updated: May 2026.

AVD Scale 2 vs Scale 1 — Which Applies to You?

AVD Scale 2 (the lower tiered rates) applies to Hong Kong permanent residents purchasing their first residential property. Rates range from 1.5% on properties valued up to HK$3 million, rising progressively to 5% on properties above HK$21.739 million. The IRD applies marginal relief rules at each band boundary — meaning that the duty payable can never exceed the lower band's duty plus the excess above the boundary. This prevents "cliff-edge" jumps where a slightly higher price results in a disproportionately larger duty bill.

AVD Scale 1 applies to all other residential transactions: HKPR buyers acquiring a second or subsequent property, non-permanent residents, and companies. Since 28 February 2024, Scale 1 is a flat 7.5% of the property value (previously 15% under the New Residential Stamp Duty regime). For a HK$10 million property, Scale 1 duty is HK$750,000 — versus roughly HK$450,000 under Scale 2. The difference underscores why confirming buyer type before exchanging contracts is financially critical.

Buyer's Stamp Duty (BSD) — Abolished Since Feb 2024

Prior to 28 February 2024, non-Hong Kong permanent residents and companies purchasing residential property were required to pay an additional Buyer's Stamp Duty of 7.5% on top of AVD. For a HK$8 million apartment, that added HK$600,000 to acquisition costs — a significant deterrent to foreign buyers and institutional investors. The Hong Kong government removed BSD entirely as part of a package of demand-side measures to stimulate a property market that had experienced significant price corrections. As of today, all buyers — regardless of nationality, residency status, or entity type — pay only the applicable AVD. Non-permanent residents who are first-time property buyers in HK also pay AVD Scale 2, not Scale 1, provided they have not previously held any residential property in Hong Kong. Buyers should confirm their eligibility with a licensed solicitor before signing the provisional agreement for sale and purchase.

When Must Stamp Duty Be Paid and What Are the Penalties?

Stamp duty on a Hong Kong property purchase must be paid within 30 days of executing the agreement for sale and purchase (ASP), or within 30 days of the conveyance on sale if no prior ASP was executed. Late payment is subject to a penalty of up to 10 times the amount of duty outstanding — a potentially enormous liability on high-value transactions. The duty is payable to the Stamp Office, which is part of the IRD, and must accompany the stamping application for the instrument. Solicitors handling property transactions in HK routinely collect stamp duty from clients before the 30-day deadline. For off-plan purchases, the ASP is typically executed at the time of signing the preliminary agreement, so the clock starts early. Always confirm the exact signing date and due date with your solicitor to avoid unnecessary penalties. Source: IRD — Stamp Duty Administration.

HK Stamp Duty 2026 — Worked Examples for Common Property Values

Below are three real-world calculations using the official IRD AVD schedule for 2026. Use these as a sanity check against the calculator above, and to understand how marginal relief flattens cliff-edge jumps. All figures match the official IRD Stamp Duty rates table (last verified 2026-06-06).

Example 1 — HK$3,000,000 flat (first-time HKPR buyer, Scale 2): 1.5% × HK$3,000,000 = HK$45,000. Effective rate 1.50%. This is the single largest band on the Scale 2 schedule and covers most first-home buyers in non-central districts. Example 2 — HK$8,000,000 flat (first-time HKPR, Scale 2 with marginal relief): Falls inside the HK$6,642,861 – HK$9,000,000 standard band at 3.75%. Duty = 3.75% × HK$8,000,000 = HK$300,000. Effective rate 3.75%. Example 3 — HK$8,000,000 flat (Scale 1 — non-first-time HKPR, non-HKPR or company): 7.5% × HK$8,000,000 = HK$600,000. The HK$300,000 difference between Scale 1 and Scale 2 on the same property is the financial reason confirming "first-time HKPR" status before contract exchange is critical. Solicitors typically require a statutory declaration to confirm eligibility.

HK Stamp Duty on Higher-Value Properties (HK$10M – HK$30M)

For Hong Kong island and Kowloon prime stock, transactions in the HK$10M – HK$30M range are common. Here is how Scale 2 (first-time HKPR) compares to Scale 1 (everyone else) on those bands, calculated directly from the Stamp Duty Ordinance (Cap. 117) Schedule 1, Head 1:

• HK$10,000,000: Scale 2 = 4.5% × HK$10M = HK$450,000. Scale 1 = 7.5% × HK$10M = HK$750,000. Scale-1 surcharge: HK$300,000.
• HK$15,000,000: Scale 2 (in the 4.5% band, no marginal relief needed) = HK$675,000. Scale 1 = HK$1,125,000. Surcharge: HK$450,000.
• HK$20,000,000: Scale 2 = 4.5% × HK$20M = HK$900,000 (still inside the 4.5% band — top of bracket). Scale 1 = HK$1,500,000. Surcharge: HK$600,000.
• HK$25,000,000: Scale 2 = 5% × HK$25M = HK$1,250,000 (now in the top 5% band, above the HK$21,739,130 marginal-relief boundary). Scale 1 = HK$1,875,000. Surcharge: HK$625,000.
• HK$30,000,000: Scale 2 = 5% × HK$30M = HK$1,500,000. Scale 1 = HK$2,250,000. Surcharge: HK$750,000.

The pattern is clear: once a property exceeds HK$21.74M, Scale 2 maxes out at 5%, and the Scale 1 surcharge grows by exactly HK$25,000 per HK$1M of price. Buyers planning an upgrade purchase often run two scenarios — selling the existing property first to qualify for Scale 2, vs holding both and paying Scale 1 — using the surcharge above as the holding-cost benchmark.

Updated 2026-06-22. Source: Stamp Duty Ordinance (Cap. 117), Schedule 1, Head 1 — Hong Kong eLegislation.

HK Stamp Duty for Non-Permanent Residents and Mainland Buyers (2026)

If you are not a Hong Kong Permanent Resident (HKPR), the stamp duty calculation is different. Two big rule changes affect non-PR buyers in 2026:

1. Buyer's Stamp Duty (BSD) — abolished 28 February 2024. Before 28 Feb 2024, non-HKPRs paid an additional 15% BSD on top of AVD. After the abolition (announced in the 2024 HK Budget), non-HKPRs now pay the same Scale 1 AVD as everyone else (no BSD).
2. Scale 1 still applies to non-HKPR buyers. Even after BSD abolition, non-PR buyers cannot claim Scale 2's lower first-home rates — they default to Scale 1. On an HK$8M flat, that's a HK$300,000 difference vs an eligible HKPR first-home buyer.
3. Mainland buyers via QMAS / Top Talent Pass scheme: Once approved and resident in HK, they qualify for Scale 2 first-home rates upon meeting the 7-year HKPR residency rule. Until then, Scale 1 applies. Document the residency status at signing — solicitors require a statutory declaration.
4. Special Stamp Duty (SSD) — also abolished 28 Feb 2024. Previously charged on flips within 36 months. No longer applies — investors can resell freely without the 10–20% SSD penalty.
5. Companies and trusts: Always Scale 1, regardless of beneficial owner status. Setting up a BVI or local company to buy property triggers Scale 1, plus standard corporate-tax considerations.