About the Hong Kong Salaries Tax Calculator 2025/26
This calculator follows the Inland Revenue Department (IRD) rules for the 2025/26 year of assessment. It deducts your MPF mandatory contributions (up to $18,000) and other deductions from total income to get net income, subtracts your allowances (basic, married person's, child, dependent parent and so on), applies the progressive rates of 2%, 6%, 10%, 14% and 17%, and compares the result with the two-tier standard rates (15% / 16%) – you pay whichever is lower.
The 2026-27 Budget gave a one-off 100% reduction of 2025/26 salaries tax, capped at $3,000; the law was gazetted on 22 May 2026. Allowances also go up from 2026/27 – the basic allowance rises from $132,000 to $145,000. Because Hong Kong's tax bill combines the 2025/26 final tax with the 2026/27 provisional tax, both are shown side by side.
How to use
- Enter your monthly salary and any bonus, double pay or other income for the year.
- Choose how to handle MPF – most employees can let the calculator work it out – and add other deductions such as VHIS premiums, TVC or domestic rent.
- Pick your marital status and enter children and dependent parents. Add the 2025/26 provisional tax you already paid if you know it.
- Read your 2025/26 tax, the 2026/27 provisional estimate and the total tax bill. The table shows every deduction and allowance used.
Tax rates and allowances
| Net chargeable income | Progressive rate |
|---|---|
| First $50,000 | 2% |
| Next $50,000 | 6% |
| Next $50,000 | 10% |
| Next $50,000 | 14% |
| Remainder | 17% |
Standard rates: 15% on the first $5,000,000 of net income (before allowances) and 16% on the rest. You are charged the lower of the two amounts.
| Allowance | 2025/26 | From 2026/27 |
|---|---|---|
| Basic / single parent | $132,000 | $145,000 |
| Married person's | $264,000 | $290,000 |
| Child (each, 1st–9th) | $130,000 | $140,000 |
| Additional child (newborn) | $130,000 | $140,000 (for children under two) |
| Dependent parent / grandparent 60+ | $50,000 | $55,000 |
| Dependent parent / grandparent 55–59 | $25,000 | $27,500 |
If the dependant lived with you for the whole year, you get an additional allowance of the same amount.
Worked example: single, $380,000 a year
From the IRD's own examples: income $380,000 − basic allowance $132,000 = net chargeable income $248,000. Tax = $1,000 + $3,000 + $5,000 + $7,000 + $48,000 × 17% = $24,160; after the $3,000 reduction you pay $21,160. The 2026/27 provisional tax, using the new $145,000 basic allowance, is $21,950. With $10,000 provisional tax already paid, the tax bill comes to $11,160 + $21,950 = $33,110. (The example ignores MPF; an employee can usually deduct up to $18,000 more.)
Sources
- IRD – 2026-27 Budget tax measures: 100% reduction of 2025/26 tax capped at $3,000 and higher allowances from 2026/27, gazetted 22 May 2026 (ird.gov.hk)
- IRD – illustrative examples for the Budget measures (example2627.pdf), including progressive and two-tier standard rate computations
- GovHK – tax rates of salaries tax and personal assessment; allowances
- MPFA – employees' mandatory contributions (minimum and maximum relevant income $7,100 / $30,000 a month)
- IRD – 2026 Policy Address tax measures (proposed $160,000 child allowance for second and later children; not yet law)
Checked on 2 October 2026. Not covered: personal assessment, property tax, disability allowances and the individual caps on each deduction. Estimate only.
FAQ
How much is the 2025/26 tax reduction?
Salaries tax, tax under personal assessment and profits tax for 2025/26 are reduced by 100%, up to $3,000 per case. A married couple under joint assessment gets one $3,000 cap between them. It applies only to the 2025/26 final tax, not to 2026/27 provisional tax, and the IRD applies it automatically on your assessment.
Why does my tax bill look like two years of tax?
Hong Kong collects tax in advance. This year's bill has the 2025/26 final tax (less the provisional tax you paid last year) plus 2026/27 provisional tax, which is estimated from your 2025/26 income using the new 2026/27 allowances but without any reduction. If you expect your 2026/27 income to fall sharply, you can apply to hold over provisional tax.
How much MPF can I deduct?
Mandatory contributions are deductible up to $18,000 a year ($1,500 a month). Employees earning under $7,100 a month don't contribute, and contributions are capped at $1,500 a month from $30,000. Tax-deductible voluntary contributions (TVC) and qualifying deferred annuity premiums share a separate $60,000 cap – enter them under other deductions.
Should a married couple choose joint assessment?
If your spouse has no income chargeable to salaries tax, you can claim the married person's allowance directly. When both of you earn, joint assessment helps mainly when one income is much lower. Calculate each of you as “single”, then enter your combined income as “married” and compare. If joint assessment would mean more tax, the IRD assesses you separately.
When do the standard rates apply?
You pay at the standard rates when that gives less tax than the progressive rates. Since 2024/25 it is 15% on the first $5 million of net income and 16% on the rest. For a single person without other allowances, that happens at roughly $2 million of net income.