How does Hong Kong salaries tax work?

You pay the LOWER of: (1) progressive rates on net chargeable income (2/6/10/14/17% in bands), or (2) standard rate of 15% on net income (after deductions but before allowances). The two-rate comparison ensures you never pay more than 15% effective.

What allowances reduce HK salaries tax?

Basic Allowance: HK$132,000 (2024-25). Married Person Allowance: HK$264,000. Child Allowance: HK$130,000 per child (first to 9th). Dependent Parent/Grandparent: HK$50,000 (co-residing), HK$25,000 (not co-residing). These are used in the progressive calculation.

What deductions are available?

Self-education expenses (max $100,000), elderly residential care expenses, home loan interest (max $100,000, 20-year limit), approved charitable donations (up to 35% of income). MPF contributions also deductible (max $18,000).

Is there a salaries tax on overseas income?

Hong Kong uses a territorial tax system: only Hong Kong-sourced income is taxable. Income arising from services rendered outside Hong Kong is not subject to salaries tax, even for Hong Kong residents.

How is salaries tax assessed?

Annual assessment based on tax return (April 15 deadline for individuals). Tax paid in two installments: 75% in January, 25% in April. Provisional tax estimated for the following year is collected simultaneously.

Hong Kong Salaries Tax: Standard Rate vs Progressive Calculator

Calculate Hong Kong salaries tax. Taxpayer pays lower of: standard rate 15% on net income, or progressive rates (2% to 17%) minus allowances. Progressive bands: 2% to $50,000, 6% to $100,000, 10% to $150,000, 14% to $200,000, 17% above.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate Hong Kong salaries tax. Taxpayer pays lower of: standard rate 15% on net income, or progressive rates (2% to 17%) minus allowances. Progressive bands: 2% to $50,000, 6% to $100,000, 10% to $150,000, 14% to $200,000, 17% above. Use the hong kong salaries tax result to inform your calculation.

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Frequently Asked Questions

How does Hong Kong salaries tax work?

What allowances reduce HK salaries tax?

What deductions are available?

Is there a salaries tax on overseas income?

How is salaries tax assessed?