Hong Kong Salary Calculator
Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Last reviewed on January 29, 2023
Results
Income Before Tax
Take Home Pay
Total Tax
Average Tax Rate
$ = Hong Kong Dollar
Income Before Tax
Income Tax
Mandatory Provident Fund (MPF)
Total Tax
Take Home Pay
Total Deductions
Average Tax Rate
Table of Contents
Summary
Enter your employment income into the salary calculator above to estimate how taxes in Hong Kong may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
This salary calculator also works as an income tax calculator for Hong Kong, as it shows you how much income tax you have to pay based on your salary and personal details.
To learn more about , its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Quick Facts about Hong Kong
- Name(s) in Native Language(s):香港
- Main Language(s):Cantonese, English
- Currency:Hong Kong Dollar ($)
- Total Population:7,500,700
- Time Zone(s):UTC+8
- International Phone Code:+852
- Driving Side:Left
- Climate:Subtropical with warm winters and hot and humid summers
Frequently Asked Questions
What is the income tax rate in Hong Kong?
The personal salaries tax rate from normal employment in Hong Kong is progressive and ranges from 2% to 17% depending on your income. This income tax calculator can help estimate your average income tax rate and your take home pay.
How many income tax brackets are there in Hong Kong?
The income tax system in Hong Kong has five different tax brackets. For more details, check out our detail section.
Hong Kong Income Tax Brackets and Other Information
Hong Kong is known as a very business friendly place. Many taxes are low and some are even non-existent. As far as income tax goes, workers in Hong Kong enjoy relatively low rates when compared to the rest of the world. This is partly because the government has huge fiscal reserves that produce a lot of interest which acts as crucial revenue and helps keep the tax burden light.
Additionally, the government directly owns much of the city’s land, and leases sites out to private developers very slowly in a tightly controlled fashion. By perpetually limiting the supply of land amidst unwavering demand and maintaining high undisclosed reserve prices, land values and real estate property values are kept high and ever increasing. So high, in fact, that Hong Kong often ranks as having the most expensive real estate in the world.
In Hong Kong, income tax is not all treated equally. There are three main categories of income and each are taxed differently. Business or trading profits are taxed under profits tax, income from employment, office, or pension is taxed under salaries tax, and rental income from immovable property is taxed under property tax. The focus of our calculator is on normal salaries tax from normal employment.
The personal income (salaries) tax system in Hong Kong is a progressive tax system. This means that your income is split into multiple brackets where lower brackets are taxed at lower rates and higher brackets are taxed at higher rates. Tax rates range from 2% to 17% with a maximum overall net cap of 15%.
For 2022 tax year
| Taxable Income (HKD) | Tax Rate |
|---|---|
| First 50,000 | 2% |
| From 50,000 to 100,000 | 6% |
| From 100,000 to 150,000 | 10% |
| From 150,000 to 200,000 | 14% |
| From 200,000 onwards | 17% |
A standard personal exemption exists which helps to lower your taxable income. There are also many other possible deductions which you may be eligible for so be sure to check for them. Some of them include the number of dependents, donations, various expenses, various contributions, etc.
Social Security in Hong Kong
The general retirement fund of social security in Hong Kong is called the mandatory provident fund (MPF). Designed to provide a formal system of retirement protection, the MPF system is a privately managed contribution scheme that came into operation on December 1st, 2000. As the name suggests, the system is mostly mandatory and almost all employees must contribute a small percentage of their monthly income with the employer making a matching contribution. The amount of income available in calculating your contribution has a maximum cap. The main exception is with low income earners, as those making under a certain threshold do not have to contribute. (their employers must still contribute though) Other exceptions may also include foreigners who enter Hong Kong to work for fewer than 13 months or those that are already covered by another retirement system from overseas.
Contributions to the MPF can act as deductions when calculating your taxable income up to a certain limit.
Resident status and income tax in Hong Kong
The topic of residence is not entirely relevant when discussing about tax in Hong Kong unless in the context of a tax treaty. Instead, a territorial basis is used where individuals are subject to Hong Kong personal salaries tax on Hong Kong-sourced employment income, income that is derived from an office located in Hong Kong, and income accrued from a Hong Kong pension.
That being said, in the context of a tax treaty, a tax resident is defined as an individual who ordinarily resides in Hong Kong or stays in Hong Kong for more than 180 days during a year of assessment or for more than 300 days in two consecutive years of assessment.
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Disclaimer
- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- While internal calculations are not rounded, all final resultant numbers are rounded normally with numbers ending in 0.5 and above being rounded up.
- Tax situations vary widely and calculations can get very complex. This salary calculator only provides a rough estimate according to the most common scenarios for standard employment income that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary.
- Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Generally, we review changes once a year since tax codes usually change once a year. If you notice a major miscalculation or error with our salary calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific questions about your own personal situation, please consult a licensed tax professional.
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