United Kingdom vs Hong Kong: Tax Comparison

Compare income tax rates and take-home pay between United Kingdom and Hong Kong

You'd keep $12,703 more in Hong Kong

Hong Kong

15.0% tax

United Kingdom

27.7% tax

$1,059/mo difference

Side-by-side breakdown

Hong Kong

2025/26

15%

Income

Gross Salary$100,000
Basic Personal Allowance-$16,870
Mandatory MPF Contributions-$2,300
Mandatory Provident Fund (MPF)-$2,300
Taxable Income$78,530

Taxes & Contributions

0 to HKD 50,000-$128
HKD 50,000 to HKD 100,000-$383
HKD 100,000 to HKD 150,000-$639
HKD 150,000 to HKD 200,000-$895
Over HKD 200,000-$9,005
Mandatory Provident Fund (MPF)-$2,300
Maximum Tax Cap-$1,657
Total Taxes-$15,007
NET ANNUAL PAY$84,993
Per Month$7,083
Effective Rate15.0%

United Kingdom

2025/26

28%

Income

Gross Salary$100,000
Personal allowance-$17,014
Taxable Income$82,986

Taxes & Contributions

Basic rate-$10,206
Higher rate-$12,783
Class 1 National Insurance (employee)-$4,721
Total Taxes-$27,710
NET ANNUAL PAY$72,290
Per Month$6,024
Effective Rate27.7%

Tax rate by income level

Hong Kong
United Kingdom

Understanding the difference

The Stability Trade-off

The UK taxes you progressively but gives you the NHS, state pensions, and a social safety net that cushions downturns. Hong Kong offers lower headline rates and a tax cap that shields high earners, but you're mostly funding your own healthcare and retirement through private schemes and mandatory provident funds.

Where High Earners Win

Hong Kong's 15-16% cap is genuinely powerful for six-figure incomes; the UK has no ceiling and keeps climbing. If you're building wealth fast, Hong Kong's simplicity and rate cap make it the obvious choice, though you'll miss the public services that come standard in the UK.

The Expat Permanence Question

The UK charges you on worldwide income forever once you're a resident; Hong Kong only taxes money actually earned there. For footloose workers or those planning to move again, Hong Kong's territorial system is far less of a trap, while UK residency status can become expensive to escape.

What You're Really Paying For

UK national insurance and income tax collectively fund a universalist system; Hong Kong's lower take-home often means buying private alternatives for healthcare, education, and retirement. Choose the UK if you value a shared safety net; choose Hong Kong if you'd rather keep more cash and build your own.

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