Hong Kong Taxation

Salaries Tax

Salaries tax is imposed on all income arising in or derived from Hong Kong from an office or employment or any pension. "Income arising in or derived from Hong Kong", without in any way limiting the meaning of the expression, includes all income derived from services rendered in Hong Kong. Special provisions apply to seamen, airmen and other persons who visit Hong Kong for short periods and also to those who have paid tax of substantially the same nature as Hong Kong Salaries Tax in any territory outside Hong Kong.

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Details 2020/2021   2019/2020
Progressive rate
Income after allowance
- $0 to $50,0002% - $0 to $50,000 2%
- $50,001 to $100,000 6% - $50,001 to $100,000 6%
- $100,001 to $150,000 10% - $100,001 to $150,000 10%
- $150,001 to $200,000 14% - $150,001 to $200,000 14%
- Remainder 17% - Remainder 17%
 
Standard rate 15%   15%
 
Allowance
- Personal allowance: single $132,000   $132,000
- Personal allowance: married $264,000   $264,000
- Personal allowance: disability $75,000   $75,000
- Single parent $132,000   $132,000
- Child: 1st to 9th (each)
- Year of birth $240,000   $240,000
- Other years $120,000   $120,000
- Dependent parent/ grandparent (Age 60 or over)
- Residing with taxpayer $100,000   $100,000
- Non-residing with taxpayer $50,000   $50,000
- Dependent parent/ grandparent (Age 55-59)
- Residing with taxpayer $50,000   $50,000
- Non-residing with taxpayer $25,000   $25,000
- Dependent brother/ sister $37,500   $37,500
- Disabled $75,000   $75,000
       
Upper Limit of Deductible Expenses for Salaries Tax Assessment
- Expenses of self-education $100,000   $100,000
- Home loan interest * $100,000   $100,000
- Elderly residential care expenses $100,000   $100,000
- Mandatory provident fund (MPF) contributions $18,000   $18,000
- Eligible health insurance premium $8,000   $8,000
- Annuity premiums and MPF voluntary contributions $60,000   $60,000
- Approved charitable donations (ceiling in % of assessable income) 35%   35%


*With effect from the year of assessment 2017/18, the number of years of deduction for home loan interest is further extended from 15 to 20 (not necessarily consecutive) years of assessment.


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Profits Tax Salaries Tax Property Tax Stamp Duty Business Registration Fee