Hong Kong Tax Calculator (2026)
Income tax rates and take-home pay for Hong Kong
Hong Kong Income Tax Brackets (2025-26)
| Bracket | Income Range | Rate |
|---|---|---|
| First 50,000 | HK$0 - HK$50,000 | 2.0% |
| Next 50,000 | HK$50,000 - HK$100,000 | 6.0% |
| Next 50,000 | HK$100,000 - HK$150,000 | 10.0% |
| Next 50,000 | HK$150,000 - HK$200,000 | 14.0% |
| Remainder | HK$200,000+ | 17.0% |
Personal allowance: HK$132,000
Mandatory Provident Fund (MPF)
| Bracket | Income Range | Rate |
|---|---|---|
| Below threshold | HK$0 - HK$85,200 | 0.0% |
| Standard contribution | HK$85,200+ | 5.0% |
Capped at HK$18,000 per year
Key Facts
Tax Year
2025-26
Currency
HKD
Top Rate
17.0%
Brackets
5 brackets
Allowance
HK$132,000
Social Contributions
1 item
Assumptions
- · Salaries tax is calculated as the lower of: (1) Progressive rates on Net Taxable Income (Gross Income - Deductions - Allowances) or (2) Two-tiered standard rates on Net Assessable Income (Gross Income - Deductions). This data implements the progressive rate system.
- · The two-tiered standard rate mentioned in the source (15% on first 5M, 16% on remainder) acts as a tax cap.
- · Mandatory Provident Fund (MPF) contributions are deductible for salaries tax purposes.
- · Basic Allowance (132,000 HKD) applied for a single person profile.
Frequently asked questions
How much income tax will I pay in Hong Kong?
Hong Kong uses a progressive tax system with five brackets ranging from 2% on your first 50,000 HKD to 17% on income above 200,000 HKD. Your actual tax is calculated on your Net Taxable Income, which is your gross income minus deductions and allowances, with a Basic Allowance of 132,000 HKD available for single taxpayers. However, your total tax is capped at a two-tiered standard rate of 15% on the first 5 million HKD and 16% on any amount above that, whichever is lower.
What is the Mandatory Provident Fund (MPF) and do I have to contribute?
The Mandatory Provident Fund is Hong Kong's mandatory retirement savings scheme requiring both employees and employers to contribute 5% of salary, up to a maximum contribution of 18,000 HKD per year. Your employee contribution only applies to earnings above 85,200 HKD annually, and importantly, it is deductible from your income for salaries tax purposes, reducing your overall tax burden. This makes MPF contributions valuable both as a retirement benefit and a tax-advantaged savings mechanism.
As an expat, will I pay tax on my worldwide income in Hong Kong?
Hong Kong taxes residents on income arising in Hong Kong and foreign income remitted to Hong Kong, but non-residents are only taxed on Hong Kong-sourced income. The tax system is generally favorable for expats, and with the progressive rates starting as low as 2%, combined with the Basic Allowance and MPF deductions, your effective tax rate may be significantly lower than in many other countries. It's worth consulting a tax advisor about your specific residency status and income sources.
What deductions and allowances can I claim to reduce my taxes?
The main allowance available is the Basic Allowance of 132,000 HKD for single individuals, which is subtracted from your gross income before calculating tax. Additionally, your Mandatory Provident Fund contributions (up to 18,000 HKD per year) are fully deductible for tax purposes. Other deductions may be available depending on your personal circumstances, such as spousal or dependent allowances, so it's advisable to review the full list of available reliefs based on your situation.
Is there a flat tax rate I should know about, or does the rate increase with income?
Hong Kong does not have a flat tax; instead, it uses a progressive system where your tax rate increases as your income rises, starting at 2% on the first 50,000 HKD and reaching 17% on income above 200,000 HKD. This means you only pay the higher rates on the portion of income that falls into each bracket, not your entire income. The progressive structure is designed to ensure higher earners contribute more while lower earners benefit from lower rates on their initial income.
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