Hong Kong has a reputation as one of the lowest-tax places in the world to live and work, and for most expats it earns it. But low tax isn't no tax. What you pay depends less on how long you stay and more on where your job is based and where you do the work.
This guide covers Hong Kong personal tax for people moving to or working in Hong Kong in 2025/26 and 2026/27. It doesn't cover immigration, but we flag where your home country, particularly the UK or US, may still tax you.
The key question is simple. Which of your income does Hong Kong actually tax?
What's changed: the basic allowance rises to HK$145,000 and the married person's allowance to HK$290,000 for 2026/27. Since 2024/25, the standard rate has been two-tier: 15% on the first HK$5m of net income and 16% above it.
📋 Hong Kong tax at a glance for 2026/27
Tax system | Territorial: only Hong Kong-sourced income is taxed |
|---|---|
Top salaries tax rate | 17% marginal, capped at 15% of net income (16% above HK$5m) |
All-in on a US$100k salary | About 13%, including MPF (about HK$780,000 salary, single, 2026/27) |
Foreign income | Not taxed |
Capital gains, dividends, interest | Not taxed for individuals |
Residence at a glance | Getting in: moderate (treaty residence after 180 days in a year). Leaving: clean break, once your final return is settled |
Double tax treaties | 60 signed |
How Hong Kong's territorial system works
Hong Kong taxes income by source, not by residence. Only income arising in or derived from Hong Kong is taxable, and becoming resident doesn't switch on tax on your worldwide income the way it does in the UK, US or Australia.
There are three separate direct taxes: salaries tax on employment income, profits tax on business profits and property tax on Hong Kong rental income. There's no tax for individuals on:
foreign income, including overseas pensions and rental income
capital gains
dividends and bank interest
There's also no VAT or GST, and estate duty was abolished on 11 February 2006.
👉 IRD guidance: the territorial source principle of taxation
Salaries tax: is your job a Hong Kong employment?
Why does this matter so much? Because the answer decides whether Hong Kong taxes your whole salary or only the days you work there. The Inland Revenue Department (IRD) looks at the totality of the facts, particularly where your contract was negotiated and is enforceable, where your employer is resident, and where you're paid.
Image 1 — where your job is based decides what Hong Kong taxes
Hong Kong employment: your whole salary is taxable, including days you work abroad. It only falls out of charge if you render all your services outside Hong Kong. Salary for overseas work that has already been taxed abroad at a similar tax can be excluded.
Non-Hong Kong employment: only the salary for days you work in Hong Kong is taxable, apportioned by days. If your visits total 60 days or fewer in the year of assessment, nothing is taxable.
This is why record keeping matters. Keep travel records and work calendars. If the IRD asks, you'll need to show where you worked day by day.
Salaries tax rates for 2025/26 and 2026/27
Rates haven't changed for 2026/27. You're charged on the lower of two calculations: progressive rates on your net chargeable income after allowances, or the standard rate on your net income before allowances.
Hong Kong salaries tax rates and bands for 2025/26 and 2026/27
Net chargeable income | Salaries tax rate |
|---|---|
First HK$50,000 | 2% |
Next HK$50,000 | 6% |
Next HK$50,000 | 10% |
Next HK$50,000 | 14% |
Remainder | 17% |
Standard rate (cap) | 15% on the first HK$5m of net income, 16% above |
Source: Inland Revenue Department. You pay the lower of the progressive calculation or the standard rate.
Worked example
You're single with net income of HK$600,000 in 2026/27.
After the HK$145,000 basic allowance, net chargeable income is HK$455,000.
Progressive tax is HK$16,000 on the first HK$200,000 plus HK$43,350 on the remaining HK$255,000 at 17%.
Your bill is HK$59,350, an effective rate of about 9.9%. The standard-rate calculation (HK$90,000) is higher, so it doesn't apply. This ignores other deductions such as MPF contributions.
The 2026/27 allowance increases passed the Legislative Council on 13 May 2026 and were gazetted on 22 May 2026. For 2025/26, a one-off reduction of 100% of salaries tax, capped at HK$3,000, also applies.
👉 IRD guidance: 2026/27 Budget tax measures and allowances
The 180-day and 300-day tests: what they're really for
Many expat guides get this wrong. You're a Hong Kong resident for treaty purposes if you ordinarily reside in Hong Kong, or if you stay more than 180 days in a year of assessment or more than 300 days over two consecutive years, one of which is the year in question.
These tests decide whether you can use Hong Kong's tax treaties and obtain a Certificate of Resident Status. They don't decide whether you pay salaries tax. Staying under 180 days won't take a Hong Kong employment out of tax, and 61 days of work in Hong Kong can bring a foreign employment into it.
👉 IRD FAQ: double taxation arrangements and residence
Double tax treaties
Does Hong Kong have double tax treaties? Yes. As at September 2026, Hong Kong has signed comprehensive double taxation agreements with 60 jurisdictions. They include mainland China, the UK, Japan, France, Spain, Italy, Canada, the Netherlands, Switzerland, the UAE and New Zealand. There's no income tax treaty with the US.
Because Hong Kong doesn't tax foreign income, treaties matter most when two countries both treat you as resident. The treaty's tie-breaker decides where you're resident for treaty purposes, and a country that still taxes the same income gives credit for Hong Kong tax.
👉 FSTB: full list of Hong Kong's double taxation agreements
MPF: Hong Kong's compulsory pension
What else comes out of your pay? Instead of social security, Hong Kong has the Mandatory Provident Fund (MPF). You and your employer each contribute 5% of relevant income. For monthly-paid employees, contributions start at HK$7,100 a month and are capped at HK$30,000, so the maximum is HK$1,500 a month each.
Your mandatory contributions are deductible for salaries tax, up to HK$18,000 a year.
You're exempt if you come to Hong Kong for employment for 13 months or less, or you're covered by an overseas retirement scheme.
You can withdraw your MPF benefits early if you leave Hong Kong permanently.
Proposed, not law: in March 2026 the MPFA consulted on raising the income levels to HK$10,500 and HK$40,000 a month.
👉 MPFA: Mandatory Provident Fund Schemes Authority
Freelancing, crypto and investments
If you're self-employed in Hong Kong, your business profits are charged to profits tax rather than salaries tax. Sole traders and partnerships pay 7.5% on the first HK$2m of assessable profits and 15% above, and only Hong Kong-sourced profits are taxed. Self-employed people also pay MPF at 5% of relevant income, capped at HK$1,500 a month.
For investors, there's no tax on dividends, bank interest or capital gains. For crypto, there's no capital gains tax on personal investment. If you trade frequently or in an organised way, the IRD may treat the profits as a business and charge profits tax.
The Top Talent Pass Scheme is a visa route, not a tax regime. It gets you into Hong Kong but doesn't change how you're taxed.
👉 IRD FAQ: two-tiered profits tax rates
Who is Hong Kong good for?
How does Hong Kong compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on the 2026/27 rules.
☑️ Who is Hong Kong good for? Tax ratings for expats in 2026/27
Expat profile | Hong Kong rating | Why |
|---|---|---|
Employees | Good | About 13% all-in on a US$100k salary, including MPF. The top marginal rate is 17%, capped at 15% overall (16% above HK$5m). |
Freelancers (self-employed) | Excellent | About 10% all-in on US$100k: sole traders pay 7.5% profits tax on the first HK$2m, plus MPF capped at HK$1,500 a month. |
Retirees | Excellent | Foreign pensions, dividends and interest sit outside the charge, and there's no estate duty. Living costs are high, but that isn't a tax factor. |
Crypto gains | Good | No capital gains tax for individuals. Frequent or organised trading can be treated as a business and charged to profits tax. |
Investment income | Excellent | No tax on dividends, interest or capital gains for individuals. |
Digital nomad visa | Moderate | There's no digital nomad visa. The Top Talent Pass Scheme offers a route for graduates of leading universities and high earners, and visitors can't take up local work. |
Filing, payments and leaving Hong Kong
The Hong Kong tax year runs from 1 April to 31 March. Individual returns are normally issued in early May and due within one month, with longer deadlines if a tax representative files for you. You'll usually pay provisional tax for the following year alongside your final bill.
When you leave, your employer must file form IR56G at least one month before your departure and hold back money due to you until the IRD issues a letter of release. There's no exit tax, but your final return must be settled before you go.
👉 IRD: Inland Revenue Department
Frequently asked questions
Do I pay Hong Kong tax on my overseas salary?
Not if you have a non-Hong Kong employment and do the work outside Hong Kong. Hong Kong only taxes Hong Kong-sourced income. If your job is a Hong Kong employment, though, your whole salary is taxable unless you render all your services outside Hong Kong.
Is the 60-day rule the same as the 180-day rule?
No. The 60-day rule decides whether short visits create a salaries tax charge. The 180-day and 300-day tests decide whether you're resident for Hong Kong's tax treaties. Staying under 180 days doesn't keep you out of salaries tax.
What's the maximum salaries tax rate in 2026/27?
The top progressive rate is 17%, but your total bill can't exceed the standard rate: 15% on the first HK$5m of net income and 16% on the rest.
How many double tax treaties does Hong Kong have?
As at September 2026, Hong Kong has signed comprehensive double taxation agreements with 60 jurisdictions, including mainland China, the UK, Japan, France, Canada and the Netherlands. There's no income tax treaty with the US.
Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
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