What the law says
The Hong Kong tax year runs from 1 April to 31 March, and the figures below are the 2026/27 year as the calculator models it. Hong Kong taxes income that arises in or is derived from Hong Kong, not worldwide income, so salary for work done in Hong Kong is generally taxable whatever your passport or visa. Visitors who work in Hong Kong for no more than 60 days in a tax year can be exempt, and there are other conditions. Residency tests do not change the rates.
Progressive rates and the standard rate
Salaries tax is worked out twice and you pay the lower figure. The first uses progressive rates on net chargeable income, which is pay less MPF and allowances. The second is the standard rate on net income before allowances: 15% on the first HK$5 million and 16% above. For most people the progressive method is lower, and the standard rate only wins at high incomes.
| Net chargeable income (progressive) | Rate |
|---|
| First HK$50,000 | 2% |
|---|
| Next HK$50,000 | 6% |
|---|
| Next HK$50,000 | 10% |
|---|
| Next HK$50,000 | 14% |
|---|
| Remainder | 17% |
|---|
Allowances
Allowances are subtracted before the progressive rates apply. The calculator uses HK$145,000 for a single person, HK$290,000 for a married person and HK$140,000 for each child. They apply under the progressive method only, not the standard rate. Other allowances, such as for dependent parents, are not modelled.
MPF contributions
The Mandatory Provident Fund (MPF) is the compulsory retirement scheme for most employees. You pay 5% of relevant income, but only on monthly income up to HK$30,000, so your share is capped at HK$1,500 a month, or HK$18,000 a year. The calculator also skips MPF for monthly income below HK$7,100, and your employer pays the same share on top. Mandatory contributions are deductible from income up to HK$18,000 a year.
How to pay less tax, legally
These are mainstream, legal ways to reduce Hong Kong tax. Which ones apply depends on your family and income.
Tax-deductible voluntary MPF contributions
Suits: employees on the progressive method with a spare cash flow. Contributions to a Tax Deductible Voluntary Contribution account, or qualifying deferred annuity premiums, are deductible up to an annual cap on top of the mandatory MPF deduction. Check the current cap with the IRD.
Caveat: the money is locked until retirement age, and the deduction does not help once the standard rate is the lower method.
Claim dependant and other allowances
Suits: anyone supporting children, a spouse or dependent parents or siblings. Each allowance removes income from the top tax band.
Caveat: each one has qualifying rules and needs documents. The calculator only models the basic, married and child allowances.
Deductions for home loan interest, donations and self-education
Suits: homeowners who live in their property, regular donors to approved charities, and employees paying for work-related courses. These are standard deductions in a salaries tax return.
Caveat: each has its own cap and conditions, and the calculator does not include them. Keep the receipts.
Joint assessment or personal assessment for married couples
Suits: married couples where one spouse has low income or losses. A couple can elect personal assessment or joint assessment, and the tax office applies whichever gives the lower combined tax.
Caveat: the election is made in the return and the calculator models a single person's tax only.
Frequently asked questions
How much salaries tax do I pay on HK$600,000 in Hong Kong?
A single person pays about HK$56,290 after MPF and the basic allowance, and keeps about HK$525,710. A married person with two children on HK$900,000 pays about HK$35,040. Try your own figure in the Global Income Tax Calculator.
What is the difference between progressive and standard rate in Hong Kong?
The IRD works out your salaries tax in two ways and charges the lower figure. Progressive rates run from 2% to 17% on income after allowances. The standard rate is 15% on the first HK$5 million of net income before allowances (16% above that). The progressive method usually wins because allowances and low bands reduce it. On HK$3 million it is the other way round, so the standard rate of HK$447,300 applies.
The calculator runs both and shows which one it used in the line name.
What is provisional tax in Hong Kong and why do I pay two bills at once?
Hong Kong does not withhold salaries tax from pay. After the tax year ends on 31 March, you file a return and receive an assessment. The assessment includes final tax for the year just ended and also provisional tax for the next year, which the IRD estimates from the same income. You then pay it in two instalments, with the larger share first. That is why the first year's bill can look like paying for two years.
The provisional amount is adjusted when the next year's actual income is known. The calculator shows only the tax for one full year and not this cash-flow effect.
Why is my MPF contribution capped at HK$1,500 a month?
The MPF contribution rate is 5% of relevant income, but relevant income above HK$30,000 a month is ignored. So the most an employee pays is HK$1,500 a month, or HK$18,000 a year, and your employer pays the same. A high earner on HK$250,000 a month still pays only HK$1,500, so MPF takes a smaller share of pay as salary rises.
Does Hong Kong tax income I earn overseas?
Hong Kong taxes income that arises in or is derived from Hong Kong, not worldwide income. Work done in Hong Kong is generally taxable, and short visits of up to 60 days in a tax year can be exempt in some cases. Foreign income rules and your own situation vary, so confirm with the IRD before relying on an exemption.
When does the tax year start and when do I file?
The tax year runs from 1 April to 31 March. The IRD usually sends tax returns to employees in early May and expects them back within a month. Your employer also reports your pay to the IRD, so the figures should match.