PROFITS TAX
|
Type of Business
|
2026-27 (unchanged)
|
2025-26
|
|---|---|---|
|
Corporations - First HK$2m profits |
8.25% |
8.25% |
|
Corporations - The remainder |
16.5% |
16.5% |
*For 2025-26, the profits tax is proposed to be reduced by 100%, subject to a ceiling of HK$3,000. (2024-25: HK$1,500)
SALARIES TAX
- Salaries tax is charged at the lower of net chargeable income (Total Income – Deductions – Allowances) at progressive rates or net total income (Assessable Income – Deductions) at standard rate.
- Standard rate remains the same at 15% for 2025-26.
Two-tiered standard rates regime for salaries tax and tax under personal assessment starting from the 2024-25 assessment year:
|
Net income (Note)
|
Tax rates
|
|---|---|
|
$5 million or below |
15% (remains unchanged) |
|
Above $5 million |
First $5 million: 15% |
- Progressive rates are as follows:
|
Net income
|
2026-27* (unchanged)
|
2025-26
|
|---|---|---|
|
First HK$50,000 chargeable income |
2% |
2% |
|
Next HK$50,000 |
6% |
6% |
|
Next HK$50,000 |
10% |
10% |
|
Next HK$50,000 |
14% |
14% |
|
Remainder |
17% |
17% |
*For 2025-26, the salaries tax and tax under personal assessment are proposed to be reduced by 100%, subject to a ceiling of HK$3,000. (2024-25: HK$1,500)
Allowances
|
Personal allowance
|
2026-27
|
2025-26
|
|---|---|---|
|
Basic |
HK$145,000 |
HK$132,000 |
|
Married |
HK$290,000 |
HK$264,000 |
|
Single Parent |
HK$145,000 |
HK$132,000 |
|
Disabled |
HK$75,000 |
HK$75,000 |
|
Child allowances (1st to 9th child) (each)
|
2026-27
|
2025-26
|
|---|---|---|
|
In the Year of Birth (Note) |
HK$280,000 |
HK$260,000 |
|
Other years |
HK$140,000 |
HK$130,000 |
|
Dependent parent/grandparent allowances (each)
|
2026-27
|
2025-26
|
|---|---|---|
|
Basic (Age 60 or above) |
HK$55,000 |
HK$50,000 |
|
Additional allowance (for dependent living with taxpayer) (Age 60 or above) |
HK$55,000 |
HK$50,000 |
|
Basic (Age 55-59) |
HK$27,500 |
HK$25,000 |
|
Additional allowance (for dependent living with taxpayer) (Age 55-59) |
HK$27,500 |
HK$25,000 |
|
Dependent brother/sister allowance (each) |
HK$37,500 |
HK$37,500 |
|
Disabled dependent allowance (each) |
HK$75,000 |
HK$75,000 |
Note: Same increases for additional allowance for the first two years after childbirth.
Deductions
Maximum Limits
|
Deductible Items
|
2026-27 (unchanged)
|
2025-26
|
|---|---|---|
|
Self-Education expenses |
HK$100,000 |
HK$100,000 |
|
Home loan interest |
HK$100,000 (20 years of entitlement period) |
HK$100,000 (20 years of entitlement period) |
|
Elderly residential care expenses |
HK$100,000 |
HK$100,000 |
|
Mandatory contributions to recognized retirement schemes |
HK$18,000 |
HK$18,000 |
|
Approved charitable donations |
35% of assessable income |
35% of assessable income |
|
Annuity premiums and MPF voluntary contributions |
HK$60,000 |
HK$60,000 |
|
Premiums paid under voluntary Health Insurance Scheme |
HK$8,000 |
HK$8,000 |
PROPERTY TAX
The standard rate (for non-corporate owners) remains at 15% for 2025-26.