🇭🇰 Tax Year 2026/27 · Verified against Inland Revenue Department (IRD) Hong Kong

Hong Kong Salary & Take-Home Calculator

Accurate take-home pay calculation for Year of Assessment 2026/2027. Powered by official Inland Revenue Department (IRD) progressive Salaries Tax rates and MPF contribution caps.

Calculator Mode

Gross Base Salary

HK$

Pay Frequency

Benchmarks:

Estimated Net Take-Home Pay

HK$426,110.00

Per annual · HK$426,110.00 annually (89.0%)

Total Deductions

HK$53,890.00

11.0% of gross

Net Pay (89.0%)

Income Tax (7.0%)

Social / Pension (3.8%)

Effective Tax Rate

7.0%

Marginal Tax Rate

17.0%

Gross Annual

HK$480,000

Net Retention

89.0%

Gross Remuneration (annual)HK$480,000.00

Chargeable / Taxable Income BaseHK$462,000.00

Income Tax(Effective: 7.0%)

−HK$35,890.00

Mandatory Provident Fund (MPF - Employee)(5.0%)

−HK$18,000.00

Mandatory Provident Fund (MPF - Employer)Employer Paid(5.0%)

+HK$18,000.00

Net Take-Home PayHK$426,110.00

Employer's Additional Statutory Contribution:+HK$18,000.00 / annual

Worked Real-World Example

Expatriate or Resident Professional in Central / Hong Kong

On an annual gross salary of HK$480,000 (HK$40,000 per month), the mandatory employee MPF contribution is 5% capped at HK$1,500 monthly, totaling HK$18,000 per year. Because MPF is 100% tax deductible, Net Chargeable Income before personal allowances is HK$462,000. Applying the HK$145,000 Basic Allowance leaves HK$317,000 subject to progressive Salaries Tax. The four HK$50,000 brackets (at 2%, 6%, 10%, and 14%) total HK$16,000, and the remaining HK$117,000 is taxed at the top 17% rate (HK$19,890), producing a total Salaries Tax of HK$35,890. Total annual deductions are HK$53,890, yielding a take-home pay of HK$426,110 (HK$35,509.17 per month) — an effective total deduction rate of just 11.23%.

Statutory calculation model verified against official Inland Revenue Department (IRD) Hong Kong legislation.

Understanding Your Take-Home Pay in Hong Kong

Hong Kong is renowned globally for having one of the world’s most competitive and transparent personal tax systems. Overseen by the Inland Revenue Department (IRD), employment income is taxed under Salaries Tax, complemented by the statutory Mandatory Provident Fund (MPF) retirement system.

With no capital gains tax, no tax on dividends, no sales tax (GST/VAT), and low marginal rates, Hong Kong allows professionals and executives to retain the vast majority of their gross earnings.

1. Progressive Salaries Tax Rates (Year of Assessment 2026/2027)

For resident and expatriate employees whose tax is assessed under the progressive rate schedule, rates apply to Net Chargeable Income (Gross Income less Allowable Deductions and Personal Allowances):

Net Chargeable Income Band	Statutory Tax Rate	Tax on Band	Cumulative Tax
First HK$50,000	2%	HK$1,000	HK$1,000
Next HK$50,000	6%	HK$3,000	HK$4,000
Next HK$50,000	10%	HK$5,000	HK$9,000
Next HK$50,000	14%	HK$7,000	HK$16,000
Remainder	17%	Variable	17% marginal rate

Note: In addition to progressive rates, the IRD applies a Standard Rate cap of 15% on net income before allowances for very high earners. Taxpayers are charged whichever amount is lower.

2. The Mandatory Provident Fund (MPF)

Under the Mandatory Provident Fund Schemes Ordinance:

Employees contribute 5% of their relevant monthly income.
The contribution is capped at HK$1,500 per month (HK$18,000 per year).
Employers provide an equivalent 5% matching contribution (up to HK$1,500 per month), which is credited to your retirement fund on top of your base salary.
Employee mandatory contributions are 100% tax-deductible against Salaries Tax.

3. Worked Example: HK$480,000 Annual Salary

Consider a professional earning HK$480,000 per year (HK$40,000 monthly):

Gross Salary: HK$480,000.
MPF Employee Contribution (5% capped): HK$1,500/month × 12 = HK$18,000.
Net Income After MPF Deduction: HK$480,000 - HK$18,000 = HK$462,000.
Basic Personal Allowance: HK$145,000 tax-free.
Net Chargeable Income: HK$462,000 - HK$145,000 = HK$317,000.
Salaries Tax Calculation:
- First HK$50,000 @ 2% = HK$1,000
- Next HK$50,000 @ 6% = HK$3,000
- Next HK$50,000 @ 10% = HK$5,000
- Next HK$50,000 @ 14% = HK$7,000
- Remaining HK$117,000 @ 17% = HK$19,890
- Total Salaries Tax: HK$35,890.
Net Take-Home Pay: HK$480,000 - HK$18,000 (MPF) - HK$35,890 (Tax) = HK$426,110 per year (HK$35,509.17 per month).

Frequently Asked Questions

Key tax regulations, contribution ceilings, and compliance rules for Hong Kong.

How is Salaries Tax calculated in Hong Kong?

Hong Kong taxes employment income under Salaries Tax using two parallel methods: Progressive Rates (ranging from 2% to 17% applied to Net Chargeable Income after allowances and deductions) or the Standard Rate (15% applied to net income before personal allowances). The Inland Revenue Department (IRD) automatically assesses you under whichever method results in lower tax.

What is the Mandatory Provident Fund (MPF) and is it compulsory?

The MPF is Hong Kong's statutory retirement scheme. Employees between 18 and 65 are required to contribute 5% of their relevant monthly income, matched by a 5% employer contribution. Both employee and employer mandatory contributions are subject to a monthly ceiling of HK$1,500 (HK$18,000 per year). Employees earning below HK$7,100 per month are exempt from employee contributions, though employers must still contribute 5%.

Are MPF contributions tax deductible in Hong Kong?

Yes. Mandatory contributions made by an employee to an MPF scheme are fully deductible from employment income for Salaries Tax purposes, up to the statutory maximum limit of HK$18,000 per year.

What personal allowances are available to Hong Kong taxpayers?

Every single individual receives a Basic Allowance of HK$145,000. Additional allowances exist for Married Persons (HK$290,000), Children (HK$140,000 per child), Dependent Parents or Grandparents aged 60+ (HK$55,000), and Single Parents (HK$145,000).

Does Hong Kong tax overseas income or capital gains?

No. Hong Kong operates a strict territorial system of taxation. Only income arising in or derived from Hong Kong employment is subject to Salaries Tax. There is no capital gains tax, no dividend withholding tax, no GST/VAT, and no inheritance tax.

How does Hong Kong's take-home pay compare to Singapore?

Both Hong Kong and Singapore represent premier low-tax Asian financial centres. Hong Kong's top Salaries Tax bracket is 17% (with a 15% standard rate ceiling) and a capped HK$18,000 MPF, whereas Singapore's progressive rates range from 0% to 24% with high CPF contributions for citizens. For expatriates, Hong Kong and Singapore yield virtually identical, ultra-high take-home pay.