Estimate HK salaries tax YA2026/27: allowances, MPF deduction, progressive 2–17% vs two-tiered standard rate. Free, in-browser estimate.
Hong Kong Salaries Tax Calculator
Estimate your Hong Kong salaries tax for the year of assessment 2024/25, 2025/26 or 2026/27: annual income through both the progressive bands and the two-tiered standard rate, with that year's allowances, the MPF deduction and that year's one-off reduction. The tax payable is the lower of the two, rounded down to the dollar as the IRD does. Allowances covered: basic, married person's, single parent and child. Everything runs in your browser.
How to use this calculator
Choose the year of assessment
Pick 2024/25, 2025/26 or 2026/27; each uses that year's allowances and one-off reduction. The IRD's own examples show 2025/26 final tax charged together with 2026/27 provisional tax, so run both years.
Enter annual assessable income and deductions
Type your annual salaries income. The calculator auto-computes MPF mandatory contributions at 5% (capped at HK$18,000 a year) as a deduction; you can override it, and add any other deductions you can claim, such as tax-deductible voluntary MPF contributions or home loan interest.
Choose your situation and number of children
Single people get the basic allowance; a single parent adds the single parent allowance; a married person whose spouse has no income chargeable to salaries tax takes the married person's allowance instead. Child allowance covers the 1st to 9th child.
Read the tax estimate
Results show both the progressive and standard-rate calculations; the tax payable is the lower of the two, rounded down to the dollar as the IRD does, less that year's one-off reduction.
How Hong Kong salaries tax works (YA 2024/25 to 2026/27)
Salaries tax is how Hong Kong taxes income from employment, office and pension. The Inland Revenue Department (IRD) assesses it per year of assessment — 1 April to 31 March. Choose 2024/25, 2025/26 or 2026/27 above; each uses that year's allowances and one-off reduction.
The estimate works on two parallel tracks. First, your income less deductions (MPF mandatory contributions, capped at HK$18,000, and any other deductions you enter) is your net income, and net income less allowances is your net chargeable income, which is taxed through the progressive bands: 2% on the first HK$50,000, then 6%, 10%, 14%, and 17% on the remainder. Second, your net income — before allowances — is taxed at the two-tiered standard rate: 15% on the first HK$5,000,000 and 16% above it.
Your tax is the lower of those two figures, rounded down to the dollar as the IRD does, less that year's one-off reduction. Middle earners are usually lower under the progressive bands, while very high earners, whose allowances are small beside their income, often land on the standard rate.
Allowances for 2026/27: basic HK$145,000; married person's HK$290,000, replacing the basic allowance when your spouse has no taxable income; single parent HK$145,000 on top of the basic allowance; and HK$140,000 for each of the 1st to 9th child. For 2024/25 and 2025/26 the same allowances were HK$132,000, HK$264,000, HK$132,000 and HK$130,000. Allowances reduce net chargeable income only, not the standard-rate base.
Scope: this is a simplified estimate of one person's salaries tax. It omits further allowances (dependent parent, dependent brother or sister, disabled dependant, the additional allowance for a newborn), joint assessment of a married couple, personal assessment, and provisional tax for the following year, so your actual bill may differ. Verify at ird.gov.hk.
You pay the lower of the progressive and the standard rate
Hong Kong salaries tax is charged per "year of assessment", running 1 April to 31 March. This calculator covers 2024/25, 2025/26 and 2026/27, each with that year's allowances and one-off reduction.
Tax payable is the LOWER of the tax computed at progressive rates and the tax computed at the standard rate — the IRD charges whichever is lower.
The progressive rates are five bands, the same in every year this tool covers and unchanged since at least 2020/21: first HK$50,000 at 2%, next HK$50,000 at 6%, next HK$50,000 at 10%, next HK$50,000 at 14%, and the remainder at 17%.
From 2024/25 the standard rate is two-tiered: 15% on the first HK$5,000,000 of net income, and 16% on the portion above HK$5,000,000. Before that it was a flat 15%.
The basic allowance is HK$145,000 for 2026/27 and HK$132,000 for 2024/25 and 2025/26. The married person's allowance, HK$290,000 (HK$264,000 before 2026/27), replaces rather than adds to the basic allowance, and applies when your spouse has no income chargeable to salaries tax.
Child allowance is HK$140,000 per child for 2026/27 (HK$130,000 before), for each of the 1st to 9th child. The additional allowance for a newborn (from 2026/27, for each child in its first two years) is not included. The 2026 Policy Address proposes raising the child allowance to HK$160,000 for a second or later child born on or after 16 September 2026, from 2026/27; it takes effect only once legislated, and this tool does not apply it.
A single parent claims the single parent allowance on top of the basic and child allowances: HK$145,000 for 2026/27 (HK$132,000 before). It is one allowance however many children you have, and only for a year in which you were not married at any time.
MPF mandatory contributions are deductible, capped at HK$18,000 per year; employees typically contribute 5% of relevant income.
Progressive rates apply to "net chargeable income" (net income less allowances); the standard rate applies to "net income" (income less deductions, before allowances), so allowances never lower a standard-rate bill.
The one-off reduction belongs to one year at a time: 100% of the tax capped at HK$1,500 for 2024/25, and 100% capped at HK$3,000 for 2025/26, applied to the final tax only and never to provisional tax. None is legislated for 2026/27 as at 2 October 2026.
Where the standard rate takes over depends on the household: on 2026/27 allowances, GovHK puts it at an income after deductions such as MPF of HK$2,132,500 for a single person and HK$3,365,000 for a married person with one income.
Frequently Asked Questions
- Salaries tax is Hong Kong's tax on income from employment, assessed by the Inland Revenue Department (IRD) per year of assessment. Salaries, commissions, bonuses and similar received by employees, directors and most salaried persons are assessable income.
- Annual income less deductions (MPF mandatory contributions, capped at HK$18,000, plus any other deductions you enter) is your net income; less allowances, it is your net chargeable income, taxed at progressive rates. In parallel, net income is taxed at the standard rate (15% on the first HK$5M, 16% above). The tax payable is the lower of the two, rounded down to the dollar as the IRD does, less that year's one-off reduction.
- The IRD's assessment can include deductions and allowances this tool does not model (dependent parent or sibling, disabled dependant, the additional allowance for a newborn, elderly residential care expenses, and others), and a demand note usually also carries provisional tax for the next year. This is a simplified estimate, so differences are normal.
- Progressive rates are banded (2% to 17%) and apply to net chargeable income (after allowances); the standard rate is flat (two-tiered from 2024/25: 15%/16%) and applies to net income (before allowances). The IRD charges whichever is lower.
- From 2024/25 the standard rate became two-tiered: the first HK$5,000,000 of net income stays at 15%, and the portion above HK$5,000,000 is charged at 16% (previously a flat 15%).
- Choose Married only if your spouse had no income chargeable to salaries tax for the year; the married person's allowance then replaces your basic allowance. If you both earn, run each salary separately as Single (or Single parent), with only one of you claiming the child allowance: joint assessment, which puts both incomes in one calculation, is not modelled. Choose Single parent if you were not married at any time in the year, claim child allowance, and took ongoing responsibility for the child's care and supervision.
- An employee's MPF mandatory contributions are deductible when computing net income, capped at HK$18,000 a year in every year this tool covers. The tool defaults to 5% of income (capped at 18,000) but you can enter your actual amount.
- This tool estimates under the rules for Hong Kong tax residents' individual salaries tax. For complex cases — part-year employment, foreign-income exemption, double-tax relief — seek professional tax advice.
- Yes, for the year you choose. 2024/25: 100% of the tax, capped at HK$1,500. 2025/26: 100%, capped at HK$3,000 (the ordinance was gazetted on 22 May 2026), applied to the final tax only — 2025/26 provisional tax was not reduced. 2026/27: none is legislated as at 2 October 2026. For a married couple under joint assessment, the cap applies to the couple together.
- Because 2025/26 has the HK$3,000 reduction and, as at 2 October 2026, none is legislated for 2026/27. The higher basic allowance for 2026/27 is worth at most HK$2,210 to a single person (HK$13,000 × 17%), less than the HK$3,000 taken off 2025/26. On the IRD's Example 1, a single person on HK$380,000 is charged HK$21,160 in final tax for 2025/26 and HK$21,950 in provisional tax for 2026/27, which the IRD bases on the previous year's income. Choose each year above to compare your own figures.
- No. All calculations run entirely in your browser — your income, marital status and number of children are never transmitted to any server or stored anywhere. Closing this page clears all your inputs instantly.
Important — please read.
Simplified estimate only — not tax, financial, or legal advice, and not a substitute for the IRD's formal assessment. Further allowances, joint assessment, personal assessment and provisional tax are not modelled.
No affiliation. RECATOOLS is not affiliated with, endorsed by, or representing the Inland Revenue Department, the HKSAR Government, or any government agency. Names are used for identification only.
Rates for YA 2024/25 – 2026/27. Allowances, the progressive bands, the two-tiered standard rate and the one-off reduction are those of the year of assessment you choose, as legislated at 2 October 2026. Figures are revised at the annual Budget — verify at ird.gov.hk before acting.
Scope limits: individual salaries tax only. Not for profits tax, property tax, personal assessment, joint-assessment couples, or non-resident special cases.
No warranty; limitation of liability. Provided "as is" without warranty of any kind. To the maximum extent permitted by law, RECATOOLS accepts no liability for any loss arising from use of this calculator.
Privacy. All calculations run locally in your browser; no income or personal data is transmitted or stored.
Method & sources
How it computes
HK IRD salaries tax, YA 2024/25, 2025/26 or 2026/27. Allowances 2026/27: basic HK$145,000, married HK$290,000, single parent HK$145,000, child HK$140,000 (1st-9th); earlier years 132,000/264,000/132,000/130,000. Tax is the lower of 2/6/10/14/17% bands on net chargeable income and 15% on the first HK$5M of net income, 16% above; rounded down; less that year's one-off reduction (cap 1,500 for 2024/25, 3,000 for 2025/26, none for 2026/27).
What this tool implements
- Progressive rates of 2%, 6%, 10% and 14% on successive HK$50,000 slices of net chargeable income (net income less allowances) and 17% on the remainder, unchanged since at least 2020/21 (GovHK salaries tax rates table; IRD PAM 61(e), August 2026).
- Two-tiered standard rate from YA 2024/25: 15% on the first HK$5,000,000 of net income (income less deductions, before allowances) and 16% on the remainder (2024-25 Budget, paragraph 234; gazetted 31 May 2024). Before 2024/25 a flat 15%. Tax payable is the lower of the progressive and the standard-rate figure.
- Allowances per year of assessment: 2026/27 basic 145,000, married person's 290,000 (the spouse has no income chargeable to salaries tax), single parent 145,000, child 140,000 for each of the 1st to 9th child; 2024/25 and 2025/26 132,000 / 264,000 / 132,000 / 130,000 (IRD 2026-27 Budget tax measures; PAM 61(e)). 2026/27 figures as legislated at 2 October 2026: the 2026 Policy Address proposal to raise the child allowance to 160,000 for second and later children born on or after 16 September 2026 is not applied until enacted.
- One-off reduction of 100% of the tax: capped at HK$1,500 for 2024/25 and HK$3,000 for 2025/26, applied to final tax only and not to provisional tax; none legislated for 2026/27 as at 2 October 2026 (IRD budget pages for 2025 and 2026).
- Rounding as the IRD salaries tax computation program does it: the standard-rate tax is rounded down, the standard rate applies only when its rounded figure is strictly lower than the progressive one, and the tax is rounded down to the dollar before the reduction.
Sources
- GovHK. Tax Rates of Salaries Tax & Personal Assessment, including the standard-rate zone table (last revised May 2026). https://www.gov.hk/en/residents/taxes/taxfiling/taxrates/salaries…
- Inland Revenue Department. PAM 61(e), Allowances, Deductions and Tax Rate Table (August 2026). https://www.ird.gov.hk/eng/pdf/pam61e.pdf
- Inland Revenue Department. 2026-27 Budget – Tax Measures: allowances from 2026/27, the 2025/26 reduction (final tax only), passed 13 May and gazetted 22 May 2026. https://www.ird.gov.hk/eng/tax/budget.htm
- Inland Revenue Department. Examples for the 2026-27 Budget proposals (Examples 1, 2 and 4). https://www.ird.gov.hk/eng/pdf/2026/example2627.pdf
- Inland Revenue Department. Salaries tax computation program, year of assessment 2026/27. https://www.ird.gov.hk/eng/ese/st_comp_2026_27/stc.htm
- Inland Revenue Department. 2025-26 Budget – Tax Measures: the 2024/25 reduction capped at $1,500, gazetted 9 May 2025. https://www.ird.gov.hk/eng/tax/budget2025.htm
- HKSAR Government. The 2024-25 Budget, paragraph 234: two-tiered standard rates from the year of assessment 2024/25. https://www.budget.gov.hk/2024/eng/budget44.html
- HKSAR Government. The 2026-27 Budget, paragraphs 279-280: the 2025/26 reduction and the allowance increases. https://www.budget.gov.hk/2026/eng/budget55.html
Abridged — the full review record for this tool runs longer than the list above.
Pick up where you left off
Stored only in this browser — never sent to our servers.