This guide is based on the 2025/26 year of assessment, from 1 April 2025 to 31 March 2026. Allowances, deductions and one-off tax rebates work at different stages of the calculation and should not be treated as interchangeable.
Basic Allowance
The basic allowance is HK$132,000. Progressive rates are 2%, 6%, 10% and 14% on successive HK$50,000 bands, then 17% on the remainder. The standard-rate calculation is also considered. A separate 2025/26 one-off reduction is capped at HK$3,000 per case.
Married Person's Allowance
If one spouse has no salaries tax assessable income, the other can claim the married person's allowance. If both have income, it is usually more advantageous for each to claim the basic allowance separately.
Dependent Parents / Grandparents
Dependants must usually reside in Hong Kong and either live with the taxpayer continuously for at least 6 months in the year of assessment, or the taxpayer must contribute at least HK$12,000 towards their living expenses. A higher allowance applies for dependants aged 60 or above; those aged 55 to 59 may qualify for the dependent parent/grandparent allowance if conditions are met.
Child Allowance
You can claim for children under 18, or children aged 18 to 25 who are receiving full-time education. An additional allowance is available in the year of birth.
MPF Tax Deductible Voluntary Contributions (TVC)
TVC is one of the most popular tax-saving tools, with an annual cap of HK$60,000. By opening an MPF TVC account and contributing, you can claim a deduction under personal assessment or salaries tax.
Home Loan Interest Deduction
Taxpayers can claim deduction for interest on loans for their principal place of residence, capped at HK$100,000 per year of assessment for up to 20 years of assessment.
Residential Rent Deduction
If you do not own any Hong Kong residential property and rent a residential property as your principal place of residence, you can claim residential rent deduction, also capped at HK$100,000 per year.
Voluntary Health Insurance Scheme Premiums
Premiums paid for yourself or your dependants under recognised VHIS products are deductible up to HK$8,000 per insured person per year.
Summary
Enter actual figures supported by your records, then use the HK FinBox Salaries Tax Calculator to compare scenarios. The result is a planning estimate; the Inland Revenue Department's assessment is authoritative.