Hong Kong Salary Calculator

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 Hong Kong, 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!

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%.

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.