Hong Kong
Asia
Hong Kong operates a territorial tax system with low tax rates, making it one of the most attractive jurisdictions for international business and investment. Only profits arising from or derived from Hong Kong are subject to tax. The city has no capital gains tax, no VAT, and no sales tax. The two main direct taxes are Salaries Tax (on employment income) and Profits Tax (on business profits).
How Taxation Works in Hong Kong
Understand the basics of Hong Kong's tax system, who pays tax, and how rates apply to individuals and businesses.
Tax System
Hong Kong uses a territorial tax system where only income sourced in Hong Kong is taxable. Salaries tax is assessed on net assessable income after deducting MPF contributions, personal allowances, and deductions. The IRD assesses tax annually and taxpayers file returns by the deadline. Provisional tax is estimated based on the previous year's assessment and paid in installments.
Residents
Any individual earning income from employment in Hong Kong is liable for salaries tax. Companies and partnerships earning profits in Hong Kong are liable for profits tax. Non-residents earning Hong Kong-sourced income may also be taxable under certain conditions.
Non-Residents
Hong Kong does not have a formal residency test for tax purposes. Instead, the source of income determines taxability. Employment income sourced in Hong Kong is taxable regardless of residency. Overseas income is generally not taxable. The 60-day rule provides an exemption for short-term visitors.
Individuals
Salaries tax is the primary personal tax, calculated on employment income after deductions for MPF contributions, personal allowances, and deductions. Progressive rates from 2% to 17% apply, or the standard rate of 15%, whichever is lower.
Businesses
Profits tax applies to businesses carrying on trade or business in Hong Kong. Two-tiered rates: 8.25% on the first HK$2 million for corporations, 16.5% on the remainder. Unincorporated businesses pay 7.5% on the first HK$2 million and 15% on the remainder.
Territorial Tax System
Hong Kong taxes only income sourced in Hong Kong. Overseas income is generally not taxable, making it one of the most attractive jurisdictions for international business.
Progressive vs Standard Rate
Salaries tax is charged at progressive rates (2%–17%) or the standard rate (15%), whichever is lower. This ensures lower-income earners pay less tax.
Two-Tiered Profits Tax
Profits tax uses two-tiered rates: 8.25% on the first HK$2 million for corporations, and 16.5% on the remainder. This benefits small businesses.
MPF Contributions
Mandatory Provident Fund contributions by both employer and employee reduce assessable income, lowering the salaries tax liability.
Current Tax Information
April 1 – March 31 (Assessment Year) tax slabs, rates, thresholds, and key deductions for Hong Kong.
| Rate | Threshold | Notes |
|---|---|---|
| 2% | First HK$50,000 | Progressive rate |
| 6% | HK$50,001 – HK$100,000 | Progressive rate |
| 10% | HK$100,001 – HK$150,000 | Progressive rate |
| 14% | HK$150,001 – HK$200,000 | Progressive rate |
| 17% | Above HK$200,000 | Progressive rate |
| 15% | Standard rate on net income | Flat rate — whichever is lower applies |
Standard Deduction
Basic allowance of HK$132,000 for all taxpayers. Additional deductions available for MPF contributions, married person's allowance, dependent child allowance, and single parent allowance.
Major Deductions
- MPF Contributions
Mandatory Provident Fund contributions are deductible up to HK$18,000 per year (employee portion).
- Married Person's Allowance
HK$132,000 if spouse is not assessable to tax. Additional HK$132,000 if spouse is assessable.
- Dependent Child Allowance
HK$120,000 per dependent child under 18. Additional HK$120,000 for disabled dependents.
- Basic Allowance
HK$132,000 for all taxpayers.
- Single Parent Allowance
Additional HK$132,000 for single parents.
Tax Credits
- Child Tax Deduction
HK$120,000 per dependent child under 18.
- Disabled Dependent Deduction
Additional HK$120,000 per disabled dependent.
- Elderly Dependent Deduction
HK$100,000 per parent or grandparent aged 60 or above.
Important Dates
Key deadlines for Hong Kong tax filing, payments, and important milestones.
Tax Year Start
Hong Kong tax year runs from April 1 to March 31.
Salaries Tax Filing Deadline
Deadline for filing salaries tax returns (paper filing).
Provisional Tax Deadline
First installment of provisional salaries tax due.
Second Provisional Tax Installment
Second installment of provisional salaries tax due.
Third Provisional Tax Installment
Third installment of provisional salaries tax due.
Government Resources
For the most accurate and up-to-date information, visit the official government tax authority. Below are the most useful official portals, forms, and support resources for Hong Kong taxpayers.
Inland Revenue Department (IRD)
Official Hong Kong tax authority — tax forms, rates, allowances, and e-filing services.
https://www.ird.gov.hk
IRD Tax Guides
Comprehensive guides on salaries tax, property tax, and profits tax.
https://www.ird.gov.hk/en/residents/personal-tax/index.html
MPF Schemes
Mandatory Provident Fund — employer and employee contribution requirements.
https://www.mpf.gov.hk
eTax Portal
Online platform for filing salaries tax, property tax, and provisional tax.
https://www.ird.gov.hk/en/e-tax/index.html
Popular Hong Kong Calculators
Estimate your tax liability with our free Hong Kong calculators. All calculations run locally in your browser — no data is collected.
Salaries Tax Calculator
Estimate your Hong Kong salaries tax calculator with current rates and rules.
Try calculator →Profits TaxProfits Tax Calculator
Estimate your Hong Kong profits tax calculator with current rates and rules.
Try calculator →Stamp DutyHK Property Stamp Duty Calculator
Estimate your Hong Kong hk property stamp duty calculator with current rates and rules.
Try calculator →Property TaxProperty Tax Calculator
Estimate your Hong Kong property tax calculator with current rates and rules.
Try calculator →Salaries TaxSalaries Tax Calculator
Open calculator →Salaries TaxHK Net Salary Calculator
Open calculator →Salaries TaxHong Kong Tax Calculator for Expats
Open calculator →Profits TaxProfits Tax Calculator
Open calculator →Profits TaxHK Corporate Tax Calculator
Open calculator →Frequently Asked Questions
Quick answers to common questions about Hong Kong taxation, filing requirements, and using our calculators.
What is the salaries tax rate in Hong Kong?
Salaries tax is charged at progressive rates from 2% to 17% on net chargeable income, or at the standard rate of 15% on net income, whichever is lower.
How is Hong Kong tax calculated?
Hong Kong uses a territorial tax system. Salaries tax is calculated on assessable income after allowable deductions and personal allowances. The progressive rates range from 2% to 17%.
Do I need to pay Hong Kong tax as a foreigner?
If you are employed in Hong Kong, your employment income sourced in Hong Kong is subject to salaries tax. The 60-day rule may exempt short-term visitors.
What is the 60-day rule?
Under the 60-day rule, employment income sourced in Hong Kong is exempt from salaries tax if the individual is present in Hong Kong for not more than 60 days in the year and is not a resident.
Is Hong Kong tax free for expats?
Hong Kong is not entirely tax-free for expats. Employment income sourced in Hong Kong is subject to salaries tax. Overseas income is generally not taxable under the territorial system.
Trust & Transparency
Last Updated
2025-06-15
Educational Disclaimer
The tax information and calculators on this page are for educational and informational purposes only. They do not constitute professional tax advice. Tax laws are subject to change. Always consult a qualified tax professional for advice specific to your situation.
Calculation Methodology
Tax calculations follow the Hong Kong Inland Revenue Ordinance and IRD guidelines. Progressive rates and standard rate are applied as per the current assessment year. MPF contribution deductions are based on the MPF Schemes Ordinance. Allowances and deductions are applied as per the Salaries Tax Ordinance.
Data Sources
- Inland Revenue Department (IRD) Hong Kong
- Hong Kong Budget 2026
- IRD Tax Circulars and Guidelines
Privacy-First
All calculations are performed locally in your browser. No personal data is collected, stored, or transmitted to any server. Your financial information never leaves your device.
