Hong Kong Salaries Tax & MPF Calculator
Estimate mandatory MPF contributions, salaries tax payable and net income.
Input Data
Results
Annual income distribution
Progressive vs standard tax rate
At a glance:Salaries tax is Hong Kong's tax on an individual's employment income; the Mandatory Provident Fund (MPF) is the statutory retirement savings scheme under which an employee must make mandatory contributions of 5% of 'relevant income'. Tax payable is calculated by two methods and the lower applies: (1) Progressive rates — net chargeable income (income − allowances − deductions) is taxed in tiers of 2% / 6% / 10% / 14% / 17%; (2) Standard rate — net income (before personal allowances) is taxed at 15% on the first HK$5 million and 16% above. Lower-to-middle income earners generally use progressive rates, while higher earners may be capped by the standard rate.
Formula
MPF mandatory contribution = min(monthly salary, relevant income cap) × 5%; no contribution below the floor, with a monthly maximum.
Net chargeable income = annual income − allowances − deductible MPF − other deductions.
Salaries tax = min(progressive calculation, standard-rate calculation); the IRD adopts the more favourable (lower) one for the taxpayer.
Progressive rates apply in tiers to net chargeable income (2% / 6% / 10% / 14% / 17%); from the 2024/25 year the standard rate is two-tier: net income (before personal allowances) is taxed at 15% on the first HK$5m and 16% above.
$$\text{MPF}_{\text{month}} = \min(\text{salary},\ 30000) \times 5\%$$$$\text{NCI} = \text{Income} - \text{Allowances} - \text{MPF}_{\text{deduct}} - \text{OtherDeduct}$$$$\text{Tax} = \min\big(\text{Progressive(NCI)},\ \text{Standard(base)}\big)$$How to Use
- Enter your monthly income and any other annual income (e.g. bonus).
- Choose whether to claim the married person's allowance and enter the number of children.
- Add other deductible items (e.g. donations, education expenses).
- The tool shows MPF contributions, salaries tax payable and net income instantly.
FAQ
Why are there both progressive and standard rates?
Hong Kong salaries tax is computed under both the progressive and standard rates, and the lower tax is adopted. Lower-to-middle income earners usually fall under progressive rates (2%–17% in tiers); higher earners may be capped by the standard rate — from 2024/25 a two-tier standard rate applies: net income (before personal allowances) is taxed at 15% on the first HK$5m and 16% above.
Is MPF contribution tax-deductible? What is the cap?
An employee's mandatory MPF contributions are deductible when computing salaries tax, up to an annual cap of HK$18,000. Mandatory contributions are 5% of 'relevant income', with a monthly relevant income cap of HK$30,000 (i.e. max HK$1,500/month); employees earning below the floor (HK$7,100) are exempt. Voluntary contributions are generally not deductible, except qualifying Tax Deductible Voluntary Contributions (TVC) which have a separate arrangement.
What are the allowances for 2025/26?
For 2025/26 the basic allowance is HK$132,000, the married person's allowance is HK$264,000 (claimed jointly when the spouse has no net chargeable income), and each qualifying child allowance is HK$130,000 (with an equal additional allowance in the year of birth). Other allowances include dependent parent/grandparent, single parent and disabled dependant. Figures follow the latest year published by the IRD.
How is MPF linked to salaries tax? Does contribution affect tax?
Yes. An employee's mandatory MPF contributions (up to HK$18,000/year) are deductible in computing net chargeable income, so more contributions (up to the cap) lower taxable income and the corresponding tax. But MPF is for retirement savings, not purely for tax reduction; it and salaries tax are separate systems regulated by MPFA and the IRD respectively.
What are the rates and allowances in this calculator based on?
The progressive bands (2%–17%), two-tier standard rate (15%/16%) and allowances follow the IRD's salaries tax information; MPF contribution caps and rate follow the Mandatory Provident Fund Schemes Authority (MPFA). Results are for estimation and planning only; actual tax is per the IRD assessment notice.
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References
Content reviewed by the Calculatorism editorial team. Results are for reference only; please refer to the relevant authorities for the official figures.