Hong Kong salaries tax and MPF for 2026/27: allowances, progressive or standard rate
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 17 Oct 2026.Hong Kong salaries tax for 2026/27 is the lower of progressive tax (2% to 17%) on income after deductions and allowances, and the 15% standard rate on income before allowances. A single person earning HK$40,000 a month pays HK$18,000 MPF and HK$35,890 tax for the year.
Before MPF. Salaries tax is not taken from pay in Hong Kong.
HK$35,509.17
HK$480,000 income − HK$18,000 MPF − HK$35,890 salaries tax, over 12 monthsWorked out at progressive rates: they come to less than the standard rate.
Not included: other deductions (home loan interest, self-education, VHIS, voluntary MPF, rent), disability allowances and personal assessment.
Inland Revenue Department rates and allowances (pam61e, August 2026; 2026-27 Budget measures gazetted 22 May 2026) and MPFA contribution levels, checked 17 Oct 2026. An estimate.
| Assessable income | HK$480,000 |
| MPF deduction (at most HK$18,000) | −HK$18,000 |
| Net income | HK$462,000 |
| Basic allowance | −HK$145,000 |
| Net chargeable income | HK$317,000 |
| Tax at progressive rates | HK$35,890 |
| Tax at the standard rate | HK$69,300 |
| Salaries tax | HK$35,890 |
| Your employer's MPF on top | HK$18,000 |
2026/27 · Rates and rules read from the sources listed on this page (the earliest on 17 Oct 2026); they may have changed since.
Type your monthly salary and any yearly bonus.
Pick the year of assessment: 2026/27 or 2025/26.
Choose single, married (spouse with no income) or single parent, and add children and dependent parents.
Read the yearly tax, the MPF taken from your pay and what is left each month.
Open the working to see whether the progressive or the standard rate applied.
This calculator works out an employee's Hong Kong salaries tax and Mandatory Provident Fund (MPF) contributions for the years of assessment 2026/27 and 2025/26, from the Inland Revenue Department's allowance and rate table and the MPFA's contribution rules.
MPF. You and your employer each pay 5% of your relevant income. Below HK$7,100 a month you pay nothing, and above HK$30,000 a month the contribution stays at HK$1,500. A bonus counts in the month it is paid, so that month is capped too. Up to HK$18,000 of your mandatory contributions a year is deducted from income for tax.
Allowances. For 2026/27 the basic allowance is HK$145,000 and the married person's allowance HK$290,000 (2025/26: HK$132,000 and HK$264,000). Each child brings HK$140,000, and a child under two brings the same again. Dependent parents or grandparents aged 60 or more bring HK$55,000 each, those aged 55 to 59 HK$27,500, doubled when they live with you all year.
The tax. Net chargeable income is taxed at 2%, 6%, 10% and 14% on four bands of HK$50,000 and 17% on the rest. The tax is capped at the standard rate on net income before allowances: 15% on the first HK$5,000,000 and 16% above. The working tab shows which applied. For 2025/26 the one-off reduction takes off up to HK$3,000.
A worked example. On HK$40,000 a month, single, 2026/27: income HK$480,000, MPF HK$18,000, net income HK$462,000, net chargeable income HK$317,000 and tax HK$16,000 + 17% x HK$117,000 = HK$35,890, leaving HK$35,509.17 a month.
Not included. Other deductions such as home loan interest, self-education, VHIS premiums, voluntary MPF and rent; disability and brother or sister allowances; personal assessment; and a working spouse's joint assessment. Salaries tax is not withheld from pay, so the page also shows what to put aside each month.
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Income less deductions such as MPF gives net income. Less allowances, it gives net chargeable income, taxed at 2%, 6%, 10% and 14% on four HK$50,000 bands and 17% above. The tax charged is the lower of that and 15% of net income, the standard rate.
The basic allowance rises to HK$145,000 from 2026/27, up from HK$132,000. The married person's allowance becomes HK$290,000 and the child allowance HK$140,000 per child. The Legislative Council passed the change and it was gazetted on 22 May 2026, so the 2026/27 provisional tax already uses it.
Employee and employer each pay 5% of relevant income. An employee earning under HK$7,100 a month pays nothing while the employer still pays 5%. Above HK$30,000 a month both contributions stay at HK$1,500, and up to HK$18,000 a year of mandatory contributions is tax-deductible.
Only when 15% of net income, before allowances, is less than the progressive tax. For a single person in 2026/27 that happens at about HK$2,132,500 a year without deductions. Above HK$5,000,000 of net income, the standard rate is 16% on the excess, the two-tiered rate from 2024/25.
Yes. The 2026-27 Budget waived 100% of salaries tax for 2025/26 up to HK$3,000 per person, gazetted on 22 May 2026. The Inland Revenue Department applies it in the final assessment automatically. No reduction has been announced for 2026/27, so the calculator takes none off.
No. Hong Kong employers do not withhold salaries tax, apart from the MPF contribution. The Inland Revenue Department assesses the tax after the year and asks for provisional tax for the next year, so the calculator shows the monthly amount to put aside.
Rates and rules change; check the source before you rely on a figure.
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