Income tax (rates / brackets)

Hong Kong's income tax system applies progressive tax rates to residents and non-residents earning income within the territory. The current tax year (2024–25) maintains a top marginal rate of 17% for individuals, with rates rising in brackets from 2% on the first HKD 50,000 of assessable income, then 6%, 10%, and 14% at higher thresholds. This structure applies to employment income, business profits, and investment returns, though certain categories—including capital gains and interest from most sources—remain exempt from taxation.

The Inland Revenue Ordinance (Cap. 112) governs Hong Kong's income tax framework. The Commissioner of Inland Revenue administers assessment, collection, and enforcement under this legislation.

Hong Kong's tax brackets have remained stable in recent years, with no statutory rate changes announced for the 2024–25 tax year. However, the government periodically reviews allowances and deductions. The standard personal allowance for the 2024–25 year is HKD 132,000, and married persons' allowances and dependent allowances are also available, subject to eligibility criteria.

Employers and payroll teams must calculate provisional tax based on the applicable brackets and withhold salaries tax from employee remuneration. Monthly or quarterly payments are typically required, with final reconciliation at year-end (31 March). Non-residents earning Hong Kong-sourced income are also subject to tax at the same rates. Employers should maintain detailed payroll records and ensure timely submission of tax returns to the Inland Revenue Department to avoid penalties and interest charges on late or underpaid amounts.