How to use Hong Kong Salaries Tax Calculator
This Hong Kong Salaries Tax calculator estimates the tax an individual owes based on assessable income and the year of assessment you select (2023/24, 2024/25, 2025/26 or 2026/27). Hong Kong charges the lower of two amounts: progressive rates of 2% to 17% on net chargeable income (income after the HK$132,000 basic allowance), or a standard rate on net total income before allowances. For typical earners the progressive method is lower, so this calculator uses it, applies the basic allowance for you, and shows your effective rate, marginal rate, a band-by-band breakdown and estimated take-home. Enter your assessable income for the most accurate result.
- Select your year of assessment (2023/24, 2024/25, 2025/26, or 2026/27) from the dropdown.
- Enter your annual assessable income in Hong Kong dollars (before the basic allowance).
- Keep the filing status as Individual — the HK$132,000 basic allowance is applied for you.
- Click Calculate to see your Salaries Tax, effective rate and marginal rate.
- Review the band-by-band breakdown, remembering that MPF contributions are separate and not deducted here.
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How Hong Kong Salaries Tax works
Hong Kong charges Salaries Tax on the lower of two amounts. The progressive method applies rates of 2%, 6%, 10%, 14% and 17% to successive HK$50,000 slices of your net chargeable income — your income after the HK$132,000 basic allowance. For example, HK$400,000 of assessable income gives net chargeable income of HK$268,000, taxed as: 2% on the first HK$50,000 (HK$1,000), 6% on the next HK$50,000 (HK$3,000), 10% on the next HK$50,000 (HK$5,000), 14% on the next HK$50,000 (HK$7,000) and 17% on the final HK$68,000 (HK$11,560) — a total of HK$27,560, an effective rate of about 6.9% versus a 17% marginal rate.
| Net Chargeable Income (HK$) | Tax Rate |
|---|---|
| 0 – 50,000 | 2% |
| 50,001 – 100,000 | 6% |
| 100,001 – 150,000 | 10% |
| 150,001 – 200,000 | 14% |
| 200,001+ | 17% |
Progressive rates vs the standard rate
Salaries Tax is always the lower of the progressive computation and the standard-rate computation. The progressive rates apply to net chargeable income (after allowances), while the standard rate applies to net total income (before allowances). For 2023/24 the standard rate was a flat 15%; from 2024/25 it is two-tiered — 15% on the first HK$5,000,000 of net total income and 16% above. Because allowances reduce the progressive base but not the standard-rate base, the standard rate only produces a lower bill for high earners. This calculator shows the progressive result, which governs for typical incomes.
The basic allowance and other allowances
The basic allowance is HK$132,000 for a single individual and is applied automatically here. Hong Kong also grants married person’s, child, dependent parent/grandparent, single parent and disabled dependant allowances, plus deductions such as approved charitable donations, self-education expenses, home loan interest, elderly residential care expenses and mandatory MPF contributions (up to HK$18,000). These are highly individual, so this tool models only the basic allowance — enter your assessable income for an accurate band calculation.
MPF and how it differs from Salaries Tax
The Mandatory Provident Fund (MPF) is a compulsory retirement-savings scheme. Employees and employers each contribute 5% of relevant income, subject to minimum and maximum income levels. MPF lowers your take-home pay but is separate from Salaries Tax — it is not part of the bracket math here. Employee MPF contributions can, however, be deducted from assessable income up to HK$18,000 a year, which would slightly reduce the tax shown.
Effective versus marginal tax rate
Your effective tax rate is your total tax divided by total income — your true average. Your marginal rate is the rate on your next dollar, set by the highest band you reach. On HK$300,000 of assessable income (HK$168,000 net chargeable) your marginal rate is 14%, but because the first HK$132,000 is tax-free and the early bands are low, your effective rate is only about 3.8%. Understanding the difference helps with decisions about bonuses and second jobs.
Worked examples
Individual, HK$400,000 assessable income, 2025/26
Inputs: HK$400,000 assessable income
Result: HK$27,560 tax · ~6.9% effective · 17% marginal
Individual, HK$300,000 assessable income, 2025/26
Inputs: HK$300,000 assessable income
Result: HK$11,520 tax · ~3.8% effective · 14% marginal
Individual, HK$200,000 assessable income, 2025/26
Inputs: HK$200,000 assessable income
Result: HK$2,080 tax · ~1.0% effective · 6% marginal
Glossary
- Assessable income
- Your total income from employment, office or pension before deductions and allowances; what you enter into this calculator.
- Net chargeable income
- Assessable income after deductions and personal allowances; the amount the progressive 2%–17% rates are applied to.
- Net total income
- Assessable income after deductions but before personal allowances; the base for the standard-rate computation.
- Basic allowance
- A fixed allowance (HK$132,000 for a single individual) subtracted from income before the progressive bands apply.
- Standard rate
- A flat-rate cap on Salaries Tax — 15% for 2023/24, and two-tiered 15%/16% (above HK$5 million) from 2024/25 — applied to net total income; you pay the lower of this and the progressive amount.
- Year of assessment
- Hong Kong’s tax year, running 1 April to 31 March (e.g. 2025/26 covers 1 April 2025 to 31 March 2026).
- MPF (Mandatory Provident Fund)
- A compulsory retirement-savings scheme funded by employee and employer contributions; separate from Salaries Tax.
- IRD
- The Inland Revenue Department — Hong Kong’s tax administration.
- Effective tax rate
- Total tax owed divided by total income — your true average tax rate.
- Marginal tax rate
- The tax rate applied to your next dollar of income, set by the highest band you reach.
Related reading
Frequently Asked Questions
Why use Hong Kong Salaries Tax Calculator?
- Uses the official IRD progressive rates (2%, 6%, 10%, 14%, 17% on HK$50,000 bands)
- Applies the HK$132,000 basic allowance automatically before the bands
- Compare the 2023/24, 2024/25, 2025/26 and 2026/27 years of assessment with the year selector
- See your effective rate (tax as a share of income) and marginal rate (the rate on your next Hong Kong dollar)
- Transparent band-by-band breakdown of how each slice of income is taxed
Common use cases
- Estimate your Hong Kong Salaries Tax before filing your IRD return
- See how the HK$132,000 basic allowance lowers your effective rate
- Understand whether the progressive or standard rate applies to you
- Compare your marginal band rate with your effective average rate
- Check an estimate for a prior year of assessment
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