Hong Kong Income Tax Guide 2026
Complete guide to salaries tax, profits tax, property tax, and tax rates for individuals, expatriates, and businesses in Hong Kong.
Hong Kong Income Tax Rate
Hong Kong income tax is one of the lowest in the world, making it a popular destination for expats and businesses. The city operates a FY Hong Kong taxation system with only two main direct taxes: Salaries Tax and Profits Tax.
Main Tax Types in Hong Kong
Hong Kong imposes the following direct taxes:
- Salaries Tax: On employment income for individuals
- Profits Tax: On business profits for companies and unincorporated businesses
- Property Tax: On rental income from Hong Kong properties
- Stamp Duty: On property transactions and certain legal documents
Territorial Tax System
Hong Kong operates a territorial tax system in Hong Kong, meaning only income sourced in Hong Kong is taxable. This makes hong kong foreign source income exemption a key feature of the regime. Overseas income is generally exempt under foreign sourced income exemption hong kong.
Hong Kong Salaries Tax Rate 2026
Hk salary tax rate and hk salaries tax are calculated using two methods - progressive rates or the standard rate, whichever is lower.
Hong Kong Individual Tax Rate Structure
| Net Chargeable Income (HKD) | Tax Rate |
|---|---|
| First HK$50,000 | 2% |
| HK$50,001 - HK$100,000 | 6% |
| HK$100,001 - HK$150,000 | 10% |
| HK$150,001 - HK$200,000 | 14% |
| Above HK$200,000 | 17% |
Standard Rate vs Progressive Rate
Taxpayers can choose between:
- Progressive rate: 2% to 17% on net chargeable income
- Standard rate: 15% on net income (whichever is lower)
The hk personal tax rate effectively provides tax-free allowance of HK$132,000 plus deductions.
Hong Kong Corporate Tax Rate
Corporate income tax in Hong Kong uses a two-tier system.
Company Tax Rate Hong Kong
| Profits | Corporations | Unincorporated Businesses |
|---|---|---|
| First HK$2 million | 8.25% | 7.5% |
| Above HK$2 million | 16.5% | 15% |
Profit Tax HK Calculations
Only profits sourced in hong kong are taxable. Overseas profits are exempt under the territorial system.
Hong Kong Rental Income Tax
Rental income tax hong kong is calculated at 15% on the net assessable value after deductions.
Property Tax Rate Hong Kong
- Standard rate: 15% on net assessable rental value
- Deductions include: irrecoverable rent, government rent, and property management fees
Hong Kong Tax Bracket Structure
Hong kong income tax brackets (also called hk tax slab) for individual taxpayers:
2026 Tax Brackets for Individuals
| Income Bracket (HKD) | Tax Rate | Cumulative Rate |
|---|---|---|
| 0 - 50,000 | 2% | 2% |
| 50,001 - 100,000 | 6% | 4% |
| 100,001 - 150,000 | 10% | 7% |
| 150,001 - 200,000 | 14% | 10% |
| Above 200,000 | 17% | 17% |
Hong Kong Tax Deductions and Credits
Various deductions reduce your hk taxable income.
Mandatory Provident Fund (MPF) Deductions
- Employee MPF contributions: Up to HK$18,000 annually
- Employer MPF contributions: Also deductible
- Voluntary contributions: May qualify under loan interest income taxable in hong kong provisions
Personal Allowances
- Basic allowance: HK$132,000 for all individuals
- Married person's allowance: HK$132,000 (or HK$264,000 if spouse is not assessable)
- Dependent child allowance: HK$120,000 per child
- Elderly parent allowance: HK$100,000 per parent
Tax Credits for Healthcare
- Mandatory healthcare contributions under MPF
- Premiums for approved health insurance may be deductible
Hong Kong Income Tax for Foreigners
Detailed information about income tax in hong kong for expats and the 60-day rule.
60-Day Rule for Foreign Income
Under hong kong non resident tax provisions, foreign-source income may be exempt if:
- Taxonpayer is present in Hong Kong for 60 days or less in the year
- Salary from Hong Kong employment is received in the year
- No other Hong Kong income in the preceding 3 years
Dividend Income and Tax
Dividends from Hong Kong companies are generally not subject to withholding tax under hong kong withholding tax on dividends.
Capital Gains Tax
Capital gain tax hong kong does not exist. Profits from the sale of capital assets are generally not taxable unless determined to be revenue by the IRD.
Interest Income Taxability
Interest income taxable in hong kong when sourced from Hong Kong banks or financial institutions. However, foreign interest is generally exempt.
Hong Kong Tax Calculators
Use our free tools to calculate your tax liability:
Interactive Hong Kong Tax Calculators
Salaries Tax Calculator
Calculate Hong Kong salaries tax at progressive or standard rate.
Profits Tax Calculator
Estimate corporate tax for Hong Kong businesses.
Property Tax Calculator
Calculate rental income tax in Hong Kong.
Net Salary Calculator
Calculate take-home pay after MPF and tax.
Expats Tax Calculator
Tax calculator for foreign workers in Hong Kong.
Stamp Duty Calculator
Calculate property transaction stamp duty.
HK Tax Online Filing
Official online tax filing through eTax Hong Kong portal.
FAQs: Hong Kong Income Tax
Hong Kong Tax Year and Deadlines
- Tax year: April 1 to March 31 (Assessment Year)
- Filing deadline: April 15 (paper); June 18 (e-filing)
- Provisional tax: Paid in installments April, July, November
Best Practices for Hong Kong Tax Planning
- Choose progressive vs standard rate annually - always pick the lower amount
- Maximize MPF deductions within legal limits
- Claim all eligible personal allowances before tax return
- Maintain records for 5 years for IRD verification
- File early to avoid late-payment penalties
- Consider tax implications before salary negotiations or investments
Related Resources
Hong Kong Tax Overview
All Hong Kong tax categories, calculators, and rates.
Salaries Tax Guide
Detailed guide to Hong Kong salaries tax calculation.
MPF Tax Guide
How MPF contributions affect your Hong Kong tax.
Corporate Tax Guide
Comprehensive guide to Hong Kong profits tax for businesses.
Tax Deductions Guide
All allowances, deductions, and credits in Hong Kong.
Global Income Tax
Compare income tax systems across multiple countries.