What is the Hong Kong Salaries Tax?
Hong Kong charges salaries tax at whichever is lower: progressive rates of 2% to 17% on net chargeable income after allowances, or a standard rate of 15% on net income before allowances.
This means most people pay the progressive rate, while very high earners pay the standard rate. There is no capital gains tax, no dividend tax, and no sales tax.
Formula & worked example
Standard: 15% on income before allowances (16% above HK$5m)
Tax = lower of the two
Worked example: HK$800,000 income with HK$145,000 of allowances and HK$18,000 MPF. Net chargeable income is HK$637,000, giving progressive tax of about HK$90,290 versus standard rate tax of HK$117,300. The progressive method applies.
How to use this hong kong salaries tax calculator
- Enter your annual employment income.
- Add allowances — the basic personal allowance is HK$145,000 from 2026/27, with more for dependants.
- MPF contributions are deductible up to HK$18,000 a year.
- The calculator applies whichever method gives the lower tax.
Smart tips
- Hong Kong has no capital gains tax, no dividend tax and no VAT — the overall burden is among the lowest globally.
- Claim all available allowances: married person, child, dependent parent and disabled dependant allowances add up quickly.
- Approved charitable donations are deductible up to 35% of assessable income.
- Voluntary MPF contributions under the TVC scheme give an additional HK$60,000 of deduction.
- Tax is assessed annually with provisional payments; budget for the two-instalment cycle.
Frequently asked questions
What are Hong Kong salaries tax rates?
Progressive rates of 2%, 6%, 10%, 14% and 17% on net chargeable income, or a standard rate of 15% — whichever produces less tax.
What is the standard rate?
15% applied to net income before personal allowances (16% above HK$5 million), used when it produces a lower bill than progressive rates.
Is there capital gains tax in Hong Kong?
No. Hong Kong does not tax capital gains, dividends or most investment income.
What is MPF?
The Mandatory Provident Fund, Hong Kong's retirement scheme. Employees and employers each contribute 5% up to a cap, and employee contributions are deductible.
Want the theory behind the numbers? Browse the Money Blog for worked guides.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: Inland Revenue Department Hong Kong — PAM 61(e): allowances and progressive rates, 2026/27 onwards (Aug 2026). How we check these numbers.