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Hong Kong Tax Guide Hub 2026: Income Tax, Rates & Calculator

KEY INSIGHT
On HK$600,000 annual salary: basic allowance HK$132,000 + MPF deduction HK$18,000 → taxable HK$450,000. Salaries tax: HK$58,500 (9.75% effective). MPF: HK$18,000 (5%, capped at HK$1,500/month). Total deductions: HK$76,500 (12.75%). Net take-home: ~HK$523,500. Progressive rates (2-17%) are always lower than the standard rate cap (15%/16%) at this income level. Only Hong Kong-sourced income taxed—foreign income 100% exempt. No capital gains tax, no VAT.
At a glance

Key Facts

Tax Rate Range
2-17%
Tax Type
Progressive - rate increases with income
MPF Contribution
5% employee (max HK$18,000/year); tax-deductible
Introduction

Hong Kong offers a choice: progressive rates 2-17% or a standard rate (15% on first HK$5M net income, 16% above)—IRD calculates both and charges you the lower amount. At typical salary levels the progressive rates are always lower. Only Hong Kong-sourced income is taxed (territorial system)—foreign income is completely tax-free. MPF (Mandatory Provident Fund) adds 5% employee contribution (capped at HK$1,500/month = HK$18,000/year, tax-deductible). A HK$600,000 earner (~$77,000 USD) pays roughly HK$58,500 salaries tax (9.75% effective) plus HK$18,000 MPF. No capital gains tax, no VAT, no inheritance tax. Hong Kong's tax year runs April 1–March 31. Filing deadline is typically June. Use our calculator to estimate your Hong Kong tax liability.

This hub links to every Hong Kong tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.

Section 01

Hong Kong Tax Guides

Detailed Hong Kong tax guides on CountryTaxCalc:

Section 02

Hong Kong Income Tax Calculator

Hong Kong's income tax uses Progressive rates from 2% to 17% or flat 15%. Use the calculator to estimate your take-home pay after income tax:

IncomeRate
HK$0 - HK$50,0002%
HK$50,000 - HK$100,0006%
HK$100,000 - HK$150,00010%
HK$150,000 - HK$200,00014%
Over HK$200,00017%
Section 03

Related Hubs

Hong Kong tax connects with these hubs on CountryTaxCalc:

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FAQ

Frequently Asked Questions

How does Hong Kong's dual tax system work?

Hong Kong calculates your tax both ways: progressive rates (2-17% across 5 bands of HK$50,000 each) and a two-tiered standard rate (15% on first HK$5M of net income, 16% on the remainder). IRD automatically charges you whichever is lower. For most employees earning under HK$2M, the progressive system is cheaper. Very high earners (above roughly HK$1.5-2M) benefit from the standard rate cap. This dual system is unique globally. The standard rate changed from flat 15% to two-tiered 15%/16% effective from 2025/26.

What is Hong Kong's territorial taxation?

Hong Kong only taxes income earned in or derived from Hong Kong. Foreign-source income—dividends from overseas investments, rental income from property abroad, remote work for non-HK employers—is completely tax-free even if remitted to Hong Kong. This makes it attractive for international investors and remote workers.

What is MPF and how much do I contribute?

MPF (Mandatory Provident Fund) is Hong Kong's retirement savings scheme. Employees contribute 5% of salary, matched by 5% employer contribution. Both are capped at HK$1,500/month each (on salary up to HK$30,000/month). MPF contributions are tax-deductible. Funds locked until age 65 or permanent departure from HK.

What taxes does Hong Kong NOT have?

Hong Kong has no capital gains tax, no VAT/GST/sales tax, no inheritance/estate tax, no withholding tax on dividends, and no tax on interest income for individuals. Property transactions face stamp duty (up to 15% for non-permanent residents), and property owners pay rates (government rent). This simple system attracts wealth.
Disclaimer:This hub provides general information about Hong Kong taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official Hong Kong tax authority or a qualified local tax adviser. This is not tax or legal advice.
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