Hong Kong Salary Calculator

The Inland Revenue Department calculates your Salaries Tax two different ways and charges you whichever is lower. Method one (progressive): your income after MPF and the HK$132,000 basic allowance is taxed at rising 2%/6%/10%/14%/17% bands. Method two (standard rate): your income after MPF but WITHOUT any allowance is taxed at a flat 15% (16% above HK$5 million). For most earners the progressive method is lower because of the allowance, but at higher incomes the standard rate's flat cap can overtake the top progressive rate. IRD applies whichever produces the smaller bill automatically — you don't have to choose.

MPF (Mandatory Provident Fund) is Hong Kong's compulsory retirement savings scheme. Employees contribute 5% of relevant income, matched by a 5% employer contribution. If your monthly income is below HK$7,100, you owe no employee contribution at all (though your employer still contributes). Above HK$30,000/month, the contribution is capped at HK$1,500/month (HK$18,000/year) regardless of how much more you earn.

Yes, significantly less. This calculator models a single filer with no dependents claiming only the HK$132,000 basic allowance. Married persons can claim a HK$264,000 married person's allowance instead, and each dependent child adds a further HK$130,000 allowance (with an extra HK$130,000 in the year of birth). Dependent parent and grandparent allowances range from HK$25,000 to HK$100,000 depending on age. These materially lower the progressive-method tax bill for anyone who qualifies, so treat this calculator as a single-filer estimate. Married/dependent allowance support is planned as a future addition.

Because of the standard rate cap. Once your income is high enough that the flat two-tier standard rate (15% up to HK$5 million, 16% above) undercuts what the progressive 2-17% bands would produce, IRD charges the standard rate instead. This effectively caps the marginal rate that very high earners pay well below what the top progressive band alone would suggest, which is why Hong Kong is known internationally for a comparatively light tax burden on high salaries.

It's narrower in scope. Salaries Tax applies only to income from employment, office, or pension sourced in Hong Kong. There's no separate general income tax, no capital gains tax, and no tax on dividends or most investment income for individuals. This calculator covers Salaries Tax on employment income only.

It uses 2025/26 year of assessment IRD Salaries Tax rates and current MPFA contribution limits, which were confirmed unchanged in the 2025/26 Budget. It does not model any one-off Budget tax rebate that IRD sometimes grants (these vary year to year and are capped, e.g. up to HK$3,000 for 2025/26), and it assumes a single filer with no dependents. Always confirm with IRD or a tax professional for your exact final bill.