Income tax in Hong Kong 2026/27: your tax rate and what you keep
You keep
HK$85,309 a month
HK$1,023,710 a year · 85.3% of your gross
| Salaries tax | HK$158,290 | 13.2% |
|---|---|---|
| MPF employee contribution | HK$18,000 | 1.5% |
| Net | HK$1,023,710 | 85.3% |
The national income tax scale for 2026/27 runs from 2% to 17%, the top rate starting above HK$200,000; contributions and any local taxes come on top. Hong Kong's salaries tax has a built-in ceiling: the bill cannot exceed a standard rate of 15% on the first HK$5 million of net income and 16% on the rest, whatever the 17% top progressive band would give. The basic allowance rose to HK$145,000 for 2026/27. Tax follows the source of employment income, and profits tax leaves out gains on capital assets. At HK$2,400,000 gross, net falls to HK$2,024,700, or 84%; at HK$3,900,000, to HK$3,299,700, or 85%. On HK$1,200,000 the country ranks 6 of 35 for cash in hand, before any special regime. The sums assume: Same tax across Hong Kong; employee in the MPF scheme. On safety, schools and health it scores 83 out of 100 among the countries covered. The page then sets out 5 legal ways to cut the bill, the New Capital Investment Entrant Scheme regime and the trap to know before leaving.
The tax scale
National 2026/27 scale, before deductions. Social contributions and any local taxes come on top.
| From HK$0 to HK$50,000 | 2% |
|---|---|
| From HK$50,000 to HK$100,000 | 6% |
| From HK$100,000 to HK$150,000 | 10% |
| From HK$150,000 to HK$200,000 | 14% |
| Above HK$200,000 | 17% |
At different salaries
| Gross | Income tax | Contributions | Net | Kept |
|---|---|---|---|---|
| HK$780,000 | HK$86,890 | HK$18,000 | HK$675,110 | 87% |
| HK$1,200,000 | HK$158,290 | HK$18,000 | HK$1,023,710 | 85% |
| HK$2,400,000 | HK$357,300 | HK$18,000 | HK$2,024,700 | 84% |
| HK$3,900,000 | HK$582,300 | HK$18,000 | HK$3,299,700 | 85% |
Assumptions: Same tax across Hong Kong; employee in the MPF scheme. Married means one income and joint assessment; housing benefit, other deductions and allowances, and MPF exemptions for some foreigners are ignored, no 2026/27 tax reduction is assumed, and below HKD 7,100 a month the employee pays no MPF, so net dips slightly at that threshold.
What should you do at your salary? My plan in 5 questions →
Average salary in Hong Kong
On HK$254,400 gross, the median wage of 2025, about $32,424, an employee in Hong Kong takes home HK$19,823 a month, or HK$237,879 over the year. That leaves them 94% of their pay.
Just above in the net ranking of our 31 countries is Cyprus, at $32,499. Just below is Spain, at $30,181. That place, 21, compares with 25 on gross: tax moves it up 4 places.
| Gross a year | HK$254,400 |
|---|---|
| Net a year | HK$237,879 |
| Net a month | HK$19,823 |
| Share kept | 94% |
Census and Statistics Department figure: a median monthly wage times twelve, not a mean. Exchange rate of 2 November 2026.
Cost of living in Hong Kong
The consumer price level in Hong Kong is 74.0 against 100 in the United States (World Bank, 2025), 26% below the United States. Among the 161 countries ranked from cheapest to dearest, that makes rank 131.
Compared with the other country pages: cheaper than Qatar (75.7) and dearer than Italy (72.9). Scaled by these prices, the net average salary of $30,318 buys what $40,970 would buy in the United States, where that net is $70,018. Housing is a separate story: 135.8 against a world 100 in 2021, compared with 124.3 for everyday prices.
Beyond the money
National public figures: they place the country, and say nothing about one district or one school.
| Safety, schools, health score | 83 out of 100 |
|---|---|
| Homicides per 100,000 people | 0.4 |
| Political stability (−2.5 to +2.5) | 0.8 |
| Rule of law (−2.5 to +2.5) | 0.9 |
| Mean PISA score at 15 | 520 |
| Reference international school | HK$188,300 · English Schools Foundation (ESF) secondary schools, Hong Kong (2026-27) |
| Life expectancy | 85.4 years |
| Housing price level (world = 100) | 135.8 |
| Everyday price level (world = 100) | 124.3 |
Annual tuition published by the school, for Years 7-11, excluding enrolment and other fees unless stated. One school among others, shown as a marker, not a recommendation. Board-approved level, stated as subject to Education Bureau approval at publication.
Against other countries
At HK$1,200,000 gross, it ranks 6 of 35 for cash in hand, at today's exchange rate.
Paying less, legally
Personal allowances
From 2026/27 the basic allowance is HK$145,000 and the married person's allowance HK$290,000, up from HK$132,000 and HK$264,000.
MPF mandatory contributions
Mandatory contributions to the MPF or another recognised retirement scheme are deductible up to HK$18,000 a year.
Voluntary MPF and annuities
Tax-deductible voluntary contributions and qualifying annuity premiums share a ceiling of HK$60,000 a year.
Home loan interest
Up to HK$100,000 a year on an owner-occupied Hong Kong home, for up to 20 years of assessment, or HK$120,000 when living with a child born on or after 25 October 2023.
Domestic rent
Tenants can deduct up to HK$100,000 a year, or HK$120,000 under the same child condition.
Special regimes
New Capital Investment Entrant Scheme Open
A right to live in Hong Kong through investment, not a tax concession; the official texts read mention no tax relief
Who is tax resident in Hong Kong?
Residence, domicile and citizenship do not decide salaries tax liability under domestic law, which looks at Hong Kong-sourced employment income instead. For treaty purposes a person generally counts as resident if ordinarily residing in Hong Kong, or after more than 180 days in a year of assessment or more than 300 days across two consecutive years.
The trap to know
The 60-day visit allowance works like a cliff. Under Inland Revenue's practice note, someone who renders services during visits of 61 days or more in the basis period can be liable on the whole of the year's income, and both arrival and departure days count even when spent partly in Hong Kong. A Board of Review case also refused the allowance to a resident with family in Hong Kong who kept returning there.
Questions
How much is HK$1,200,000 after tax in Hong Kong?
HK$1,023,710 a year, or HK$85,309 a month, for a single resident employee. Income tax comes to HK$158,290 and contributions to HK$18,000. At HK$2,400,000, the share you keep moves to 84%. Each month that leaves HK$85,309 of HK$100,000 gross. Regimes for new arrivals are not applied here.
What is the top income tax rate in Hong Kong?
17% on the 2026/27 scale, above HK$200,000. At HK$1,200,000, each extra 1,000 leaves about HK$830 net. At HK$3,900,000 gross you would keep 85%. It only hits what exceeds the threshold, the rest of the salary following the lower bands, so your average rate stays well below it.
What gross salary leaves HK$1,536,000 net a year in Hong Kong?
About HK$1,817,200 gross a year, or HK$151,433 a month, for a single resident employee, with no special regime taken into account. Tax and contributions then take 15% of gross. In a negotiation, start from this gross and add whatever the employer pays separately in kind.
Is Hong Kong safe and expensive to live in?
The public figures on this page show 0.4 homicides per 100,000 people, a housing price level of 135.8 (world = 100) and a mean PISA score of 520. National averages: a district or a school can differ widely. Life expectancy stands at 85.4 years and fine particles at an unpublished level, as this page details below with its sources.
Sources
- GovHK: tax rates of salaries tax and personal assessment
- GovHK: allowances for the latest 7 years
- GovHK: deduction for MPF contributions
- IRD: 2026-27 Budget tax measures
- MPFA: mandatory contributions of employees
- World Bank / UNODC, intentional homicides per 100,000
- World Bank, Worldwide Governance Indicators: political stability and absence of violence
- World Bank, life expectancy at birth
- World Bank, PM2.5 air pollution, mean annual exposure
- World Bank, International Comparison Program 2021: price level index, housing (world = 100)
- OECD, PISA 2022 Results, Volume I
- English Schools Foundation (ESF) secondary schools
- Hong Kong Census and Statistics Department, 2025 Annual Earnings and Hours Survey, release of 23 March 2026: median monthly wage
- World Bank, PPP conversion factor for private consumption (PA.NUS.PRVT.PP) divided by the official exchange rate (PA.NUS.FCRF), API read 3 November 2026
Figures 2026, checked on