Income Tax Calculator Hong Kong (2024/25)
Estimate Hong Kong Salaries Tax with the IRD progressive bands from 2% to 17%, applied to your net chargeable income. Free, private, and in HK dollars.
How income tax works in Hong Kong
Hong Kong runs one of the simplest and lightest personal tax systems anywhere. Salaries Tax, administered by the Inland Revenue Department, is territorial — only Hong Kong-sourced employment income is taxed — and there is no capital gains tax, no VAT or GST, and no dividend tax. What makes the system distinctive is its two-method design: the IRD computes your bill under progressive bands of 2% to 17% on net chargeable income, and separately at a flat standard rate on net income, then charges whichever is lower.
The progressive route starts from net chargeable income — your income after deductions and allowances, including the basic allowance (HKD 132,000 for a single person in 2024/25), which keeps a substantial slice of every salary out of the bands entirely. The year of assessment runs 1 April to 31 March. There is no broad social-insurance levy: the only mandatory contribution is MPF, at 5% of salary capped at HKD 1,500 a month, which sits outside Salaries Tax.
This calculator applies the 2024/25 progressive bands to the income you enter. It does not deduct the basic allowance for you — enter your net chargeable income after allowances and deductions — and it does not run the flat standard-rate comparison, so high earners who would land on the standard rate may see a higher figure here than the IRD would actually charge. MPF, provisional salaries tax, and personal assessment across income types are out of scope.
Hong Kong tax brackets — 2024/25
| Taxable income (HKD) | Marginal rate |
|---|---|
| HK$0 – HK$50,000 | 2% |
| HK$50,000 – HK$100,000 | 6% |
| HK$100,000 – HK$150,000 | 10% |
| HK$150,000 – HK$200,000 | 14% |
| Above HK$200,000 | 17% |
Salaries Tax for a single individual. MPF (Mandatory Provident Fund) employee contributions are 5% capped at HKD 1,500/month — separate from tax. Tax year runs 1 April – 31 March. No social-insurance levy beyond MPF.
⚠︎ Hong Kong applies the LOWER of two methods: the progressive bands shown above (on net chargeable income, after deducting your basic allowance of HKD 132,000), or a flat 15% standard rate (after a smaller allowance set). High earners typically end up at the 15% standard rate. Estimates here use the progressive bands only.
Worked examples
Salary-only estimates under the 2024/25 brackets, computed with the same formula as the calculator below (rebates and credits applied; no other income or deductions).
| Annual salary | Estimated tax | Effective rate | Take-home |
|---|---|---|---|
| HK$300,000 | HK$33,000 | 1100.0% | HK$267,000 |
| HK$600,000 | HK$84,000 | 1400.0% | HK$516,000 |
| HK$1,200,000 | HK$186,000 | 1550.0% | HK$1,014,000 |
Frequently asked questions
- How is Salaries Tax calculated in Hong Kong?
- The IRD works out two figures: progressive bands of 2%, 6%, 10%, 14% and 17% on your net chargeable income (after allowances and deductions), and a flat standard rate on your net income before allowances. You pay whichever is lower. Most employees end up on the progressive scale; only high earners hit the standard rate. This calculator models the progressive bands for the 2024/25 year of assessment.
- How much can I earn in Hong Kong before paying Salaries Tax?
- The basic allowance — HKD 132,000 for a single person in 2024/25 — comes off your income before the bands apply, and the first HKD 50,000 of net chargeable income is taxed at only 2%. Married person, child, and dependent parent allowances push the threshold higher again. Note this calculator does not deduct allowances automatically: subtract yours first, then enter the result.
- Is MPF deducted from my Salaries Tax?
- MPF is separate from Salaries Tax — your mandatory employee contribution is 5% of salary, capped at HKD 1,500 a month. Mandatory contributions are deductible from your income for Salaries Tax purposes (up to HKD 18,000 a year), so deduct them before entering your net chargeable income. This calculator does not model MPF itself.
- Does this calculator apply the 15% standard rate?
- No — it applies the progressive bands only, per the 2024/25 scale. The IRD automatically charges the standard rate instead whenever that works out lower, which typically only matters for high earners. If your income is well into the top band, treat the figure here as an upper estimate and check the IRD’s own Salaries Tax computation for the two-method comparison. Allowances, provisional tax, and joint assessment are also out of scope.
Source
Brackets last verified: 2026-04-29