Your Hong Kong salaries tax is the lower of progressive rates on income after allowances or a flat standard rate, and this calculator works out both and shows the amount you pay.
Rates verified: July 2026
Advertisement
| Net Chargeable Income Band | Rate | Tax on Band |
|---|
Advertisement
Hong Kong charges salaries tax as the lower of two calculations, which keeps the burden modest for almost everyone. The first method applies progressive rates to your net chargeable income, meaning income after deductions and personal allowances. The second applies a flat standard rate to your net income before allowances. You pay whichever comes out cheaper, and for most people that is the progressive method.
Net chargeable income is your total income minus allowable deductions such as MPF contributions, then minus your personal allowances. Allowances include the basic allowance of HKD 132,000, or HKD 264,000 for a married couple electing joint assessment, plus HKD 130,000 for each child. The progressive rates then apply to whatever remains.
The standard rate acts as a ceiling for high earners. It charges 15% on the first HKD 5,000,000 of net income and 16% above that, ignoring allowances. Once your income is high enough, the flat standard rate becomes lower than the progressive rates, so it caps the total percentage of income you pay in tax. For middle incomes the progressive method wins.
Both Hong Kong and Singapore are famous for low, simple taxes. Hong Kong caps salaries tax at 15%, while Singapore's top marginal rate reaches 24%. Neither charges tax on capital gains or dividends. For a full side by side view of take-home pay in each city, see our Hong Kong tax guide and Asia salary comparison linked below.
Hong Kong salaries tax is the lower of two amounts. The first is progressive tax on your net chargeable income, which is income after deductions and personal allowances, taxed in bands from 2% up to 17%. The second is a flat standard rate on your net income before allowances. You pay whichever result is lower.
The basic personal allowance is HKD 132,000. A married person's allowance is HKD 264,000 where one spouse elects joint assessment. Each child gives a HKD 130,000 allowance. Allowances reduce your net chargeable income, which lowers the progressive tax you pay.
The standard rate applies to high earners as a cap. For 2025-26 it is 15% on the first HKD 5,000,000 of net income and 16% on any amount above that. If the standard rate produces a lower tax than the progressive rates, you pay the standard rate amount instead.
Yes. Mandatory MPF contributions are deductible from your income for salaries tax, up to HKD 18,000 per year. This calculator applies the 5% mandatory contribution capped at HKD 18,000 by default, and you can adjust it if your situation differs.
Both are low tax hubs with progressive systems and generous allowances. Hong Kong caps salaries tax at a 15% standard rate, while Singapore's top marginal rate is higher at 24%. For middle incomes the effective rates are broadly similar, and both are far lower than most Western countries.
⚠️ Financial Disclaimer: Calculations on this site are for informational purposes only and do not constitute financial advice. Results are estimates based on published rates and may not reflect your individual circumstances. Always verify with official sources and consult a qualified professional before making financial decisions.