Taxable Income Calculator
Enter your annual income, total allowances and deductions to estimate the net chargeable income and a simplified salaries-tax amount under Hong Kong rules.
Input Data
Results
At a glance:Hong Kong salaries tax starts from assessable income, then subtracts allowances and deductions to get the net chargeable income. Tax is the lower of the progressive rates on that base or the 15% standard rate. Allowances and deductions (MPF capped at HK$18,000) reduce the taxable base.
Formula
Net chargeable income = annual income − allowances − deductions.
Tax = lower of progressive rates on the base or 15% standard rate.
How to Use
- Enter the annual income.
- Enter the total allowances and total deductions.
- Read the net chargeable income and the estimated tax.
FAQ
What is the difference between allowances and deductions?
Allowances (allowances) are subtracted directly from income before tax—for example the basic allowance and child allowance. Deductions (deductions) are eligible expenses you have actually incurred, such as MPF contributions, approved charitable donations and self-education expenses, subject to caps. Both lower your tax base but they are different in nature.
Why is the lower of progressive and standard tax taken?
Hong Kong salaries tax is computed on the progressive bands, but a 15% standard rate acts as a ceiling; you pay whichever is lower. Higher earners may therefore owe less under the standard rate, which is why the comparison is made.
Does MPF count as a deduction?
Yes. Employee MPF contributions (capped at HK$18,000 a year) are a deductible item. The easiest approach in this tool is to fold them into the 'total deductions' input.
Can this be used as a formal tax return?
No. This tool simplifies the bands and allowances and omits items such as home loan interest and the various elderly allowances. For an actual return, use the Inland Revenue Department's calculator or consult an accountant.
Should double pay and bonuses be included in annual income?
Yes. Salaries tax is charged on total assessable income for the year, including double pay, bonuses and share awards. Enter the full-year total income, not just twelve times the monthly salary.
Is the estimated tax linked to my take-home pay?
Yes. The estimated tax here (÷12) can be fed into the salary-deductions calculator's tax field, letting you see your monthly cash flow together.
Related Tools
References
Content review: Calculatorism Science Team. Results are for reference only; please refer to the relevant authorities for the official figures.