Tax Bracket Calculator
Enter your net chargeable income to compute the Hong Kong salaries tax under the progressive rates, the effective rate and the marginal rate, and see the tax in each band.
Input Data
Results
At a glance:Hong Kong salaries tax uses progressive rates on net chargeable income: 2% on the first HK$50,000, 6% on the next HK$50,000, 10% on the next HK$50,000, 14% on the next HK$50,000, and 17% above. Effective rate = tax ÷ income; marginal rate = the top band reached. The final tax is the lower of this or the 15% standard rate.
Formula
Apply each progressive band to its slice of income, then sum.
Effective rate = total tax ÷ net chargeable income.
Marginal rate = the highest band reached.
$$T = \sum_{k} \min(\text{band}_k,\, \text{remaining})\times r_k$$$$\text{Effective Rate} = \dfrac{T}{\text{Income}}\times 100\%$$$$\text{Marginal Rate} = r_{\text{top band reached}}$$How to Use
- Enter the net chargeable income (after allowances and deductions).
- Read the progressive tax, effective and marginal rates.
- Compare with the 15% standard rate to pick the lower tax.
FAQ
What are the progressive salaries-tax bands in Hong Kong?
The current progressive bands are: 2% on the first HK$50,000 of net chargeable income, 6% on the next HK$50,000, 10% on the next HK$50,000, 14% on the next HK$50,000, and 17% on the remainder. Net chargeable income is the amount after deductions (e.g. MPF contributions, approved charitable donations) and allowances have been subtracted.
What is net chargeable income, and is it the same as total income?
No. Net chargeable income is total income minus allowable deductions (such as MPF contributions, approved charitable donations and education expenses) and then minus allowances (basic allowance, dependent-parent and child allowances, etc.). The progressive bands apply to this net figure, not to your gross total income.
What is the difference between the marginal rate and the effective rate?
The marginal rate is the rate applied to your 'next dollar' of income—the top band your income reaches. The effective rate is the overall average: total tax ÷ net chargeable income. Because the earlier bands enjoy lower rates, the effective rate is always below the marginal rate. When planning deductions (e.g. tax-deductible voluntary contributions), assess the benefit using your marginal rate, since that is the band the deducted income falls in.
Doesn't Hong Kong salaries tax have a standard-rate cap?
Yes. The actual tax payable is the lower of the progressive tax and the standard-rate tax. From 2024/25 the standard rate is two-tiered (15% on the first HK$5m of net income, 16% above). It mainly affects higher-income taxpayers. This calculator focuses on the progressive calculation; high earners should also compare against the standard rate.
If I move into a higher band, does all my income get taxed at the new rate?
No—this is the most common misconception. A progressive tax only charges the portion above the previous band at the new, higher rate; the earlier bands keep their lower rates. So a pay rise always increases your after-tax income and never leaves you worse off simply because you crossed a band threshold.
Related Tools
References
This calculator's content is reviewed by our Licensed Tax Advisory team. Results are for reference only; please refer to the relevant authorities for the official figures.