2026/27 year of assessment
Estimate the year’s tax and a monthly set-aside
Enter your annual income, MPF contributions and allowances to estimate the salaries tax payable and how much to set aside each month.
2026/27 basic allowance$145,000
For budgeting only; not tax advice or a formal assessment.
Results
Hong Kong salaries tax rates
Salaries tax is first calculated on net chargeable income in bands: 2% on the first $50,000, then 6%, 10% and 14%, and 17% on the remainder.
The result is then compared with tax at the standard rate on net income. The tool shows both, so you can see which route the final estimate comes from.
2026/27 allowances
Provisional tax and setting money aside
A Hong Kong tax bill usually includes the final tax for the year and provisional tax for the following year. The tool’s monthly set-aside simply divides one year’s estimated tax by 12 to help with cash flow; it does not predict the first or second instalment on your tax bill.
If your income falls sharply, you stop working or another statutory ground applies, you can apply to the Inland Revenue Department, within the time limit, to hold over provisional tax.
2026/27 worked examples
Annual income is $360,000. After deducting $18,000 of MPF contributions and the basic allowance, net chargeable income is $197,000. The estimated tax is $15,580, about $1,298 to set aside a month, an effective rate of 4.3%.
Annual income rises to $390,000 and the tax becomes $20,590, $5,010 more. Most of the extra $30,000 falls in the 17% band, so each $100 of bonus adds about $17 of tax rather than tax at the average rate.
Choosing “married person’s allowance” in the tool gives allowances of $290,000 and estimated tax of $31,640; the same income as a single person gives $56,290. Whether you qualify for the married person’s allowance, and whether to elect joint assessment, depends on the Inland Revenue Department’s rules; the tool does not compare separate and joint assessment for couples.
Total allowances are $570,000 (married $290,000 + $140,000 per child), estimated tax is $35,040 and the monthly set-aside about $2,920. The Inland Revenue Department’s FAQs state that from the year of assessment 2026/27 the additional child allowance for newborns extends to the first two years after birth, and that for second and subsequent children born on or after 16 September 2026 the child allowance rises to $160,000 each. The tool does not calculate these two cases, so tax for those who qualify may be lower.
For a single person with annual income of $3,000,000, the progressive rates give $464,290, while the standard rate needs only $447,300, so the tool uses the lower $447,300. The standard rate applies to net income before allowances, so allowances no longer reduce the tax in this case.
These examples assume an MPF deduction of $18,000, no other deductions and no one-off tax reduction; for budgeting only.
FAQ
Employment income generally includes salary, commission and bonus; the exact tax treatment is decided case by case by the Inland Revenue Department.
The standard rate has two tiers; the tool compares using 15% on the first $5 million and 16% on the remainder.
Tax reductions, joint assessment of couples, a place of residence provided by an employer, dependent parent allowances and other deductions can all play a part. The additional child allowance for newborns can cover the first two years after birth, and eligible second and subsequent children under the 2026 Policy Address attract a higher amount. The tool does not cover these two child cases; see the Inland Revenue Department’s rules.
No. It is for budgeting only; returns and assessments are as determined by the Inland Revenue Department.
The estimate uses the official allowances and rates for the 2026/27 year of assessment and is calculated on your device. It is for budgeting only and is not tax advice or a formal assessment.
Information and tool results are for general reference only and are not a recommendation or a basis for an individual decision; verify important matters independently. For limitation of liability, see Data use and disclaimer.
Not covered: the additional child allowance for newborns, the higher allowance for eligible second and subsequent children announced in the 2026 Policy Address, dependent parent allowances, one-off tax reductions and a full comparison of married couples’ assessment options.
Assumes an eligible MPF deduction of HK$18,000 and no children or other deductions; no one-off tax reduction or additional child allowance for newborns. The monthly set-aside is not a provisional tax instalment.
| Annual income (HK$) | Net chargeable income | Estimated tax for the year | Monthly set-aside |
|---|---|---|---|
| 240000 | 77000 | 2620 | 218.33 |
| 480000 | 317000 | 35890 | 2990.83 |
| 720000 | 557000 | 76690 | 6390.83 |
Net chargeable income = annual income − deductions − allowances. Tax at progressive rates is compared with tax at the two-tier standard rate and the lower is used; negative figures are treated as zero.
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