Hong Kong Tax Rates
2025/26 Year of Assessment — common tax rates and allowances
Salaries Tax — Progressive Rates
| First HK$50,000 | 2% |
| Next HK$50,000 | 6% |
| Next HK$50,000 | 10% |
| Next HK$50,000 | 14% |
| Remaining amount | 17% |
Net chargeable income = Total income − Allowances − Deductions. Tax is the lower of progressive rates and the standard rate (15%).
Personal Allowances (2025/26)
| Basic Allowance | HK$132,000 |
| Married Person's Allowance | HK$264,000 |
| Child Allowance (per child) | HK$130,000 |
| Dependent Parent Allowance (aged 60+) | HK$50,000 |
| Single Parent Allowance | HK$132,000 |
| Disabled Dependent Allowance | HK$75,000 |
Profits Tax
| Limited Company — First HK$2,000,000 | 8.25% |
| Limited Company — Above HK$2,000,000 | 16.5% |
| Sole Proprietorship / Partnership — First HK$2,000,000 | 7.5% |
| Sole Proprietorship / Partnership — Above HK$2,000,000 | 15% |
The two-tiered profits tax rate applies to businesses with no other connected entities.
Stamp Duty — Property
| HK$3,000,000 or below | HK$100 |
| HK$3,000,001 – HK$4,000,000 | 1.5% |
| HK$4,000,001 – HK$6,000,000 | 2.25% |
| HK$6,000,001 – HK$20,000,000 | 3.0% |
| HK$20,000,001 or above | 4.25% |
Non-permanent residents are also subject to Buyer's Stamp Duty (BSD) at 15%. Special Stamp Duty (SSD) applies to resales within 36 months of acquisition.
Stamp Duty — Stock Trading
| Buyer and seller each pay | 0.1% |
| Minimum charge | HK$1 |
Calculated on transaction value or market value, whichever is higher.
Property Tax
| Tax rate | 15% |
| Calculation basis | Net assessable value = Rental income − Rates − 20% repair allowance |
Owner-occupied properties are exempt from property tax. Companies holding properties may elect to be exempt from property tax and assessed under profits tax instead.
Personal Assessment
| Combined assessment | Salaries Tax + Property Tax + Profits Tax income assessed together |
| When beneficial | For taxpayers with business losses, mortgage interest deductions, or VHIS deductions |
| How to apply | Select "Personal Assessment" in your tax return; the IRD will automatically compare which yields lower tax |
| Tax rate | Calculated using Salaries Tax progressive rates based on net chargeable income |
Taxpayers can elect Personal Assessment each year. Married couples may elect joint assessment, which often reduces tax further.
⚠️ The above information is for reference only. Actual tax liability is subject to IRD assessment. If in doubt, consult a professional tax adviser.