Estimate HK salaries tax YA2024/25: 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 2025/26: annual income through both the progressive bands and the two-tiered standard rate, with allowances and the MPF deduction. The tax payable is the lower of the two. Everything runs in your browser.
How Hong Kong salaries tax works (YA 2025/26)
Enter annual assessable income (HK$)
Type your annual salaries income. The calculator auto-computes MPF mandatory contributions at 5% (capped at HK$18,000/year) as a deduction; you can override the actual amount.
Choose your marital status
Single individuals get the basic allowance of HK$132,000; married persons use the married person's allowance of HK$264,000 (which replaces the basic allowance).
Enter number of children
Child allowance is HK$130,000 per child, reducing your net chargeable income directly.
Read the tax estimate
Results show both the progressive and standard-rate calculations; the tax payable is the lower of the two. The standard rate is the two-tiered scheme from 2024/25.
How Hong Kong salaries tax works (YA 2025/26)
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 — and this calculator uses the 2025/26 year of assessment figures.
The estimate works on two parallel tracks. First, your income less deductions (mainly MPF mandatory contributions, capped at HK$18,000) less allowances gives 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 income less deductions — before allowances — is taxed at the two-tiered standard rate: 15% on the first HK$5,000,000 and 16% above it.
Your tax payable is the lower of those two figures. The IRD applies whichever is more favourable to you: middle earners are usually lower under the progressive bands, while very high earners — whose allowances are diluted — often land on the standard rate.
Allowances for 2025/26: a basic allowance of HK$132,000 for a single person, or a married person's allowance of HK$264,000 (which replaces the basic allowance), plus HK$130,000 child allowance per child. These reduce net chargeable income only, not the standard-rate base.
Scope: this is a simplified estimate of individual salaries tax. It omits many real-world items — other deductions (approved charitable donations, self-education, elderly residential care), further allowances (dependent parent, disabled), provisional tax, personal assessment, and the one-off Budget rebates — so your actual tax may differ. Verify at ird.gov.hk.
11 Facts About Hong Kong Salaries Tax
Hong Kong salaries tax is charged per "year of assessment", running 1 April to 31 March; this calculator uses the 2025/26 year of assessment allowances and rates.
Tax payable is the LOWER of the tax computed at progressive rates and the tax computed at the standard rate — the IRD automatically charges whichever is more favourable.
For 2025/26 the progressive rates are five bands: 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 became two-tiered: 15% on the first HK$5,000,000 of net total income, and 16% on the portion above HK$5,000,000.
The basic allowance is HK$132,000; the married person's allowance is HK$264,000, which replaces (not adds to) the basic allowance.
Child allowance is HK$130,000 per child for 2025/26 (excluding the extra allowance in the year of birth).
MPF mandatory contributions are deductible, capped at HK$18,000 per year; employees typically contribute 5% of income.
Progressive rates apply to "net chargeable income" (income less deductions less allowances); the standard rate applies to "net total income" (income less deductions, before allowances).
High earners, whose allowances are diluted, are often taxed at the standard rate; low-to-middle earners are usually lower under progressive rates.
This calculator covers individual salaries tax only — not profits tax, property tax or personal assessment, and it omits other deductions (approved charitable donations, self-education, elderly residential care, etc.), so your actual tax may be lower.
From the 2026/27 year of assessment the allowances rise (already enacted): basic allowance to HK$145,000, married person's allowance to HK$290,000, and child allowance to HK$140,000 per child; the newborn additional child allowance also becomes claimable for two years instead of one.
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 (mainly MPF mandatory contributions, capped at HK$18,000) and allowances gives net chargeable income, taxed at progressive rates; in parallel, "income less deductions" is taxed at the standard rate (15% on the first HK$5M, 16% above). The tax payable is the lower of the two.
- The IRD's formal assessment factors in more deductions and allowances (approved charitable donations, elderly residential care, self-education, dependent parent/sibling, disabled allowances, etc.), plus provisional tax and one-off rebates. 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 total income (before allowances). The system charges whichever is lower.
- From 2024/25 the standard rate became two-tiered: the first HK$5,000,000 of net total income stays at 15%, and the portion above HK$5,000,000 is charged at 16% (previously a flat 15%).
- A married person can claim the married person's allowance of HK$264,000, which replaces the single basic allowance of HK$132,000. This tool treats a single return; for joint assessment of a couple, see the IRD's guidance.
- An employee's MPF mandatory contributions are deductible when computing chargeable income, capped at HK$18,000 for 2025/26. 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.
- No. For 2025/26 the one-off reduction is 100% of the tax, capped at HK$3,000 (the enabling ordinance passed in May 2026). This tool computes no rebate, so your actual tax payable may be up to HK$3,000 lower than shown.
- 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. Other deductions, further allowances, provisional tax, personal assessment, and one-off Budget rebates 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 as at YA 2025/26. Allowances, the progressive bands, and the two-tiered standard rate are those for the 2025/26 year of assessment. 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.
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