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Income tax in Hong Kong 2026
Salaries tax is computed twice — progressive rates (2% to 17%) on income after generous allowances, and the standard rate (15%, 16% above HKD 5 million) on income before them — and you pay the lower.
Only Hong Kong-source employment is caught: work performed entirely outside the territory escapes, and visits of 60 days or less keep foreign-employed staff exempt.
At a glance
- top rate
- 17% progressive, capped at 15%/16% standard
- entry band
- 2% on the first HKD 50,000 of net chargeable income
- tax year basis
- 1 April – 31 March
- filing deadline
- 1 month from the May return; provisional tax in two instalments (75%/25%)
- residency basis
- Territorial — source of income decides, not residence
- regime flag
- Personal assessment can pool salaries, profits and property income under the 15% cap
Rates
Progressive salaries tax (unchanged since 2018/19)
| Net chargeable income (HKD) | Rate on this band | Note |
|---|---|---|
| 0 – 50,000 | 2% | |
| 50,001 – 100,000 | 6% | |
| 100,001 – 150,000 | 10% | |
| 150,001 – 200,000 | 14% | |
| Over 200,000 | 17% |
Marginal rates apply within each band.
Standard-rate cap (2026/27)
| Rate | Base | Applies to |
|---|---|---|
| 15% | Net total income (before allowances) up to HKD 5 million | The alternative computation — you pay the lower of the two |
| 16% | Net total income above HKD 5 million | Second tier, affecting only top earners |
| 7.5% / 15% | Net business profits | Sole proprietors under profits tax — 7.5% on the first HKD 2 million of profits, 15% above |
| 15% | 80% of rental value | Property tax on landlords (20% repairs allowance built in) |
Thresholds & allowances
- Basic / married allowanceHKD 145,000 / 290,000 (2026/27)
Raised from 132,000/264,000 by the February 2026 Budget (subject to enactment)
- Child allowanceHKD 140,000 per child (max 9)
Doubled in the year of birth; raised from 130,000 for 2026/27
- Dependent parents and grandparentsHKD 25,000 – 100,000 each
By age (55–59 or 60+) and whether they live with you (pre-budget levels)
- Home-loan interest / rentHKD 100,000 (120,000 with a child)
Each capped per year — 20 years of assessment for loan interest
- Self-education and elderly careHKD 100,000 each
Plus assisted-reproduction expenses to HKD 100,000 (from 2024/25)
- Retirement and insuranceHKD 18,000 + 60,000 + 8,000
Mandatory Provident Fund contributions; deferred annuities/voluntary contributions; health-scheme premiums per insured person
Residency
Residency trigger
Source, not residence, drives liability: Hong Kong employment is fully taxable (with days-based relief for services abroad), while a non-Hong Kong employment is taxed only on days worked in the territory — and not at all when visits stay within 60 days.
Non-resident treatment
Non-residents follow the same rules and rates on Hong Kong-source income; residence matters only for personal assessment, some allowances and treaty claims.
Notes
- Charitable donations are deductible up to 35% of income.
- Married couples may elect joint assessment when it lowers the bill; separate personal assessment has been possible since 2018/19.
- Provisional salaries tax is paid 75% up front and 25% about 3 months later, credited against the final bill.
- Service-company arrangements to disguise employment are recharacterized as salary.
- One-off reductions are a budget tradition — 100% capped at HKD 3,000 for 2025/26.
- Salaries-tax losses carry forward indefinitely; capital losses don't exist because gains aren't taxed.
FAQ
How much salary tax will I pay in Hong Kong?
The lower of two computations: 2–17% progressive rates after allowances (HKD 145,000 basic for 2026/27), or a flat 15% (16% above HKD 5 million) on income before allowances — effectively a 15% ceiling for most.
Is foreign income taxed in Hong Kong?
No — the territorial system leaves non-Hong Kong income at 0% for individuals even when remitted; services rendered wholly outside Hong Kong escape salaries tax entirely.
What is the 60-day rule?
Employees of non-Hong Kong employers who visit 60 days or less in a year of assessment pay no salaries tax; beyond 60 days, only Hong Kong workdays are taxed.
Figures: tax year 2026/27 (April–March), compiled from public sources. Not tax advice.