Hong Kong · 2026/27
Hong Kong Salary calculator
Find out what a Hong Kong salary leaves in your pocket for the 2026/27 year of assessment. Enter your gross pay and the calculator works out salaries tax the way the Inland Revenue Department does, deducting your mandatory MPF contribution first, then taking the lower of the progressive rates and the flat standard rate. The result assumes a single person claiming the basic allowance only.
| Gross salary | HK$35,000 |
| Salaries taxLower of progressive rates and the 15% standard rate | -HK$0 |
| MPF contribution5% of relevant income, capped at 1,500 a month | -HK$0 |
| Take-home pay | HK$35,000 |
How it works
- Your mandatory MPF contribution comes off first: 5% of relevant income, nothing below 7,100 HKD a month, at most 1,500 HKD a month, and deductible for salaries tax up to 18,000 HKD a year. What remains is your net income.
- Net income is reduced by the basic allowance of 145,000 HKD to give your net chargeable income.
- Progressive salaries tax is charged on that net chargeable income in four bands of 50,000 HKD at 2%, 6%, 10% and 14%, then 17% on anything above 200,000 HKD.
- A separate standard rate is charged on net income before any allowance: 15% on the first 5,000,000 HKD and 16% above that.
- You pay whichever of the two is lower, so higher earners are capped at the standard rate while most people pay the progressive amount.
- Take-home pay is your gross salary minus salaries tax and the MPF contribution.
Take-home = gross - min(progressive tax, standard-rate tax) - MPF
The mandatory MPF contribution comes off the salary first, since the IRD allows it as a deduction of up to 18,000 HKD a year. Net chargeable income is that net income less the 145,000 HKD basic allowance. Progressive tax runs 2%, 6%, 10%, 14% across four 50,000 HKD bands and 17% above 200,000 HKD. The standard rate charges 15% on the first 5,000,000 HKD of net income before allowances and 16% above. The IRD bills whichever is lower. The MPF itself takes 5% of relevant income, never below the monthly floor and never above 1,500 HKD a month.
- 145,000
- basic allowance in HKD, deducted after MPF and before progressive tax
- 2 / 6 / 10 / 14 / 17%
- progressive bands on each 50,000 HKD, then the remainder
- 15% / 16%
- two-tier standard rate on income before allowances, split at 5,000,000 HKD
- 5%
- employee MPF rate on relevant income
- 1,500
- MPF monthly cap in HKD (18,000 a year)
Where a salary sits in Hong Kong
| Statutory minimum wage | ≈ 86,400 HKD | 42.10 HKD an hour at about 40 hours a week |
| Median monthly employment earnings | ≈ 20,500 HKD | Census and Statistics Department |
| Salaries tax starts (single) | 145,000 HKD | net income above the basic allowance |
| Top progressive band (17%) starts | 345,000 HKD | net income after MPF, 200,000 HKD above the allowance |
Worked example
A 600,000 HKD salary (50,000 HKD a month) in 2026/27 pays MPF at the 18,000 HKD annual cap, leaving net income of 582,000 HKD. After the 145,000 HKD basic allowance, net chargeable income is 437,000 HKD. Progressive tax is 16,000 HKD on the first 200,000 HKD plus 17% of the remaining 237,000 HKD, which is 56,290 HKD in total. The standard rate would be 87,300 HKD, so the lower progressive figure applies. Take-home pay is 525,710 HKD a year, roughly 43,809 HKD a month, an effective rate of about 12.4%.
Key facts
- There is no salaries tax until income after the MPF deduction passes the 145,000 HKD basic allowance for a single person.
- The standard rate works as a cap, so no salary is taxed at an overall rate above 15% until income passes 5,000,000 HKD.
- Hong Kong has no social security payroll tax beyond the MPF, and no separate medical or unemployment levy on wages.
- MPF is capped at 1,500 HKD a month, so its bite shrinks as a share of pay as your salary rises.
- Salaries tax is billed by demand note, not withheld monthly, so budgeting for the bill is on you.
Tips
- Set aside roughly the salaries tax figure shown here through the year, because the IRD demand note arrives as a lump sum rather than coming out of each payslip.
- Voluntary contributions to a Tax Deductible Voluntary Contribution MPF account can cut your net chargeable income, with relief of up to 60,000 HKD a year.
- If you maintain a spouse, child or dependent parent, claim the relevant allowances on your return, since they reduce the progressive tax well below this single-person estimate.
- Personal assessment can lower the bill if you also have rental or business income taxed under other heads.
Take-home pay at different salaries, 2026/27
| Gross salary | Salaries tax | MPF | Take-home | A month |
|---|---|---|---|---|
| 180,000 HKD | 520 HKD | 9,000 HKD | 170,480 HKD | 14,207 HKD |
| 300,000 HKD | 8,000 HKD | 15,000 HKD | 277,000 HKD | 23,083 HKD |
| 600,000 HKD | 56,290 HKD | 18,000 HKD | 525,710 HKD | 43,809 HKD |
| 1,000,000 HKD | 124,290 HKD | 18,000 HKD | 857,710 HKD | 71,476 HKD |
| 2,000,000 HKD | 294,290 HKD | 18,000 HKD | 1,687,710 HKD | 140,643 HKD |
Frequently asked questions
Why are two different tax calculations compared?+
Hong Kong charges salaries tax at the lower of the progressive rates on income after allowances and the standard rate on income before allowances. The progressive route is cheaper for most salaries, while very high earners end up paying the flat standard rate, which acts as a ceiling on the overall percentage.
What is the MPF and how much comes out?+
The Mandatory Provident Fund is the compulsory retirement scheme. As an employee you contribute 5% of your relevant income each month. Nothing is taken if you earn below 7,100 HKD a month, and the contribution is capped at 1,500 HKD a month once your income reaches 30,000 HKD, which is 18,000 HKD across the year. Your employer pays a matching 5% on top, which is not part of your deductions.
Does this include the one-off tax rebate?+
No, because it does not apply to this year. The 2026-27 Budget granted a 100% reduction of final salaries tax capped at 3,000 HKD per case, but only for the year of assessment 2025/26. It is applied when that earlier assessment is issued and does not reduce the 2026/27 liability shown here.
I am married or have children. Will I pay less?+
Almost certainly. This calculator uses only the single basic allowance of 145,000 HKD. The married person allowance (290,000 HKD), child allowance (140,000 HKD per child), dependent parent allowance and deductions such as approved charitable donations or home loan interest all raise your allowances and lower the progressive tax, so a family typically pays less than this estimate.
Is there any tax on the first part of my income?+
Not under the progressive method. Because your MPF contribution and then the basic allowance of 145,000 HKD are removed first, a salary at or below that level has no net chargeable income and pays no salaries tax at all, though MPF may still apply above the monthly floor.
How is salaries tax actually paid?+
There is no monthly withholding like PAYE. The IRD issues a tax return and then a demand note, usually in two instalments, so you set the money aside yourself rather than seeing it deducted from each payslip. New arrivals often meet the first year and the provisional tax for the next year in the same demand.
Things to watch
- This is a planning estimate for a single person on the basic allowance, not financial or tax advice. Confirm your own position with the Inland Revenue Department before relying on it.
- The first demand note for a new taxpayer often includes provisional tax for the following year, so the initial payment can be far larger than one year of tax.
- Year-end bonuses, share awards and accommodation provided by an employer are assessable and can push more of your income into the higher progressive bands.
- MPF figures assume a steady monthly wage; commission-heavy or irregular pay is assessed period by period and may differ.
Sources
- 2026-27 Budget Tax Measures · Inland Revenue Department
- Tax Rates of Salaries Tax & Personal Assessment · GovHK
- MPF System: Mandatory Contributions for Employees · Mandatory Provident Fund Schemes Authority
- Passage of the Inland Revenue (Amendment) (Tax Concessions, Concessionary Deductions and Allowances) Bill 2026 · HKSAR Government
Last updated: 2026-04-01 · Applies to 2026/27
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- Year of assessment 2026/27. Single person claiming the basic allowance of 145,000 HKD only, with the mandatory MPF contribution allowed as a deduction.
- Salaries tax is the lower of the progressive rates (2 to 17%) on net chargeable income and the two-tier standard rate (15% then 16%) on net income after deductions but before allowances.
- Excludes the married person and child allowances and deductions such as home loan interest, charitable donations and tax-deductible voluntary contributions. The one-off rebate in the 2026-27 Budget reduces 2025/26 final tax only and is not part of the 2026/27 charge.
- MPF is assessed on a steady monthly income, with the 7,100 HKD floor and 30,000 HKD ceiling applied monthly. Irregular pay or a partial year can change the contribution.
Reviewed by Vikas Dulgunde.