2024/25 Tax Year · Updated

HK Tax Guide for Students & Fresh Grads
Simple. Clear. Free.

Hong Kong's tax system is one of the simplest in the world. Learn everything you need to know in under 10 minutes — no jargon, no confusion.

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15–16%
Standard rate (2024/25)
HK$132K
Basic allowance (tax-free)
~50%
Workers pay zero tax
1 form
BIR60 — that's it
The Fundamentals

Why HK Tax Is Actually Simple

Unlike many countries, Hong Kong uses a territorial tax system with very low rates. Here's what makes it different.

Key Principles

  • 🗺️
    Territorial SourceOnly income arising in or derived from HK is taxed. Overseas income is generally not taxable.
  • 📊
    Two Assessment MethodsThe IRD automatically applies whichever of Progressive or Standard Rate gives you the lower tax bill.
  • 📅
    Tax Year = Apr 1 to Mar 31The Hong Kong tax year runs from 1 April to 31 March of the following year.
  • 🏢
    Inland Revenue Department (IRD)HK's tax authority. They send your tax return form (BIR60) by post every May.

Progressive Rate

Tax is calculated using progressive brackets on your net chargeable income (after subtracting allowances and deductions). Your income is taxed at increasing rates as it rises.

Net Chargeable Income = Salary − MPF − Deductions − Personal Allowances

Best for most employees

Standard Rate

A flat 15% tax rate on your net income. This applies only if it results in lower tax than the progressive rate — the IRD automatically uses whichever method saves you more.

Net Income = Salary − MPF − Deductions (personal allowances not subtracted for this method)

Only better for very high earners
Good news for students starting work If your annual salary is below HK$132,000, you owe zero salaries tax — the basic allowance alone covers you completely.
2024/25 Tax Year

Salaries Tax Rates

Progressive rates apply to your Net Chargeable Income after all allowances and deductions.

Net Chargeable IncomeTax RateMax Tax in Band
First HK$50,0002%HK$1,000
Next HK$50,0006%HK$3,000
Next HK$50,00010%HK$5,000
Next HK$50,00014%HK$7,000
Remainder17%—

Standard Rate (2024/25)

15% on net income up to HK$5M; 16% on income above HK$5M. If this results in lower tax than progressive rates, the IRD automatically applies it instead.

Marginal Rate by Band

First $50K
2%
Next $50K
6%
Next $50K
10%
Next $50K
14%
Remainder
17%

Example: HK$400K salary, single

Gross Salary$400,000
Less: MPF (~$18,000)−$18,000
Less: Basic Allowance−$132,000
Net Chargeable Income$250,000
Estimated Tax~$22,000
Reduce Your Bill

Key Allowances & Deductions

These amounts are subtracted from your income before tax is calculated. Claim everything you're entitled to.

👤

Basic Allowance

HK$132,000

Everyone gets this. No questions asked. If you earn less than $132K per year, you pay zero tax.

💑

Married Person's Allowance

HK$264,000

If you're married and assessed jointly, you get double the basic allowance instead of two separate ones.

👶

Child Allowance

HK$120,000

Per eligible child. First year of birth: HK$240,000. Claimable until child turns 18 (or 25 if in full-time education).

👨‍👩‍👧

Dependent Parent Allowance

HK$25,000–50,000

Per dependent parent/grandparent aged 55+. Higher if they live with you. Grandparents also qualify.

📚

Self-Education Expenses

Up to HK$100,000

Courses, exams, and training fees related to your current job. Keep all receipts. Professional exams count!

🏠

Home Loan Interest

Up to HK$100,000/yr

Interest paid on mortgage for your principal place of residence. Claimable for up to 20 years.

🏦

MPF Mandatory Contributions

Up to HK$18,000/yr

Your mandatory MPF contributions (5% of salary, capped) are fully deductible. Automatic — no action needed.

❤️

Charitable Donations

Up to 35% of income

Donations to approved charities (e.g. Community Chest, Red Cross). Minimum HK$100 per donation.

Fresh Grad Tip Claim self-education expenses for any professional exams or courses you take. HKICPA, CFA, legal qualifications — these can easily save you HK$5,000–17,000 in tax annually.
Estimate Your Tax

Interactive Tax Calculator

Get a quick estimate for the 2024/25 tax year. All calculations happen locally in your browser.

🧮
Enter your details and click Calculate to see your estimated tax liability.
Step by Step

How to File Your Tax Return

The process is straightforward. Here's exactly what happens and what you need to do.

1

Receive Your BIR60 Form

The IRD mails the Individual Tax Return (BIR60) to your registered address, usually in May. First-timers may need to register with the IRD first.

📬 Keep your address updated with IRD!
2

Gather Your Documents

You'll need: payslips or employer's statement, MPF annual statements, receipts for self-education, home loan interest certificates, and donation receipts.

3

Complete and Submit

Paper: Fill out BIR60 and mail or hand-deliver to IRD.
eTAX (recommended): Log in using your HK ID. Faster, with instant confirmation.

💻 eTAX portal is available 24/7
4

Meet the Deadline

Usually 1 month from the date on the form. Missing the deadline may incur a fine of up to HK$10,000.

5

Receive Your Notice of Assessment

IRD sends your final bill (or refund notice) a few months later. Tax is usually payable in two instalments between January and April.

What to Keep (for 6 years)

  • 📄Payslips and employer's salary letter
  • 🏦MPF annual benefit statements
  • 📚Course/exam fee receipts
  • 🏠Home loan statements from bank
  • ❤️Donation receipts (with receipt numbers)

Key Dates (2024/25)

Tax year ends31 Mar 2025
BIR60 issuedMay 2025
Filing deadline~Jun 2025
Tax paymentJan–Apr 2026
Mandatory Provident Fund

MPF Explained

MPF is Hong Kong's mandatory retirement savings scheme. Understanding it helps you plan and reduce your tax bill.

Mandatory Contributions

5% of your relevant income, capped at HK$1,500/month (HK$18,000/year)

Employee (you)5% — up to HK$1,500/month
5%
Employer5% — up to HK$1,500/month
5%
Tax benefit: Your contributions (up to HK$18,000/year) are fully tax-deductible. At a 17% marginal rate, that's up to HK$3,060 saved annually.

Relevant Income Cap

Contributions are based on your "relevant income".

Monthly income below HK$7,100Exempt from contributions
Between HK$7,100–30,0005% of actual income
Above HK$30,000/monthCapped at HK$1,500/month

Tax Deductible Voluntary Contributions (TVC)

On top of mandatory MPF, voluntary contributions give you an extra tax deduction.

Up to HK$60,000/yr

Additional deduction for TVC and qualifying deferred annuity premiums combined.

At the 17% marginal rate, maxing out TVC can save you up to HK$10,200 in extra tax annually.

When Can You Access Your MPF?

  • Age 65Normal retirement age. Full access to all accrued benefits.
  • Age 60Early retirement option if you permanently stop working.
  • Permanent departureLeaving HK permanently allows full withdrawal.
  • Death / TPDBenefits passed to estate or paid on total permanent disability.
Do's and Don'ts

Common Mistakes & Pro Tips

Avoid these common pitfalls and make the most of the allowances available to you.

⏰

Don't Miss the Deadline

Filing late can result in a penalty of up to HK$10,000 and estimated assessments. The IRD takes deadlines seriously.

🧾

Forgetting Allowances

Many new employees forget to claim self-education expenses, dependent parent allowances, or charitable donations. The IRD won't remind you.

📱

Use eTAX

The IRD's eTAX portal is fast, secure, and gives instant confirmation. It also pre-fills some fields if you filed before.

📂

Keep Receipts Digitally

Photograph receipts for courses, donations, and home loans. Store them for at least 6 years in case of a tax enquiry.

💼

Part-Time & Freelance Income

All HK-sourced income counts, including side gigs and freelance work. It must be declared even if it's small.

🏦

Maximise Your MPF TVC

Voluntary MPF contributions up to HK$60,000/year give you extra tax deductions that compound over time.

🔄

Joint vs. Separate Assessment

Married couples can choose jointly or separately. Run both calculations — sometimes separate is better if one earns much more.

🎓

Professional Exam Deductions

HKICPA, CFA, ACCA, Bar exams, HKSI — if it's related to your profession, course fees are deductible up to HK$100,000.

Got Questions?

Frequently Asked Questions

Answers to the questions first-time taxpayers ask most.

Yes, if you received a BIR60 form you must file it. If your income after allowances results in zero tax, you still submit — the IRD will confirm no tax is due.
Provisional Tax is an advance payment — it is NOT PAYE. You still must file your annual return. The IRD reconciles your actual tax with provisional tax paid.
Yes! If you overpaid provisional tax, the IRD issues a refund. You can offset against future provisional tax, or receive a cheque/bank transfer. Refunds typically arrive 1–3 months after your Notice of Assessment.
Salaries Tax applies to employment income. Profits Tax applies to businesses and sole proprietors. Freelance or side business income may be subject to Profits Tax.
No — personal allowances are given in full regardless of months worked. Even starting in October, you get the full HK$132,000 basic allowance, making it very likely you owe zero tax in your first year.
Generally no. HK bank deposit interest and dividends from HK-listed companies are not taxable. There is no dividend or capital gains tax in Hong Kong.
The IRD may issue an estimated assessment (usually higher than your actual tax), and fines up to HK$10,000. Repeated failure can lead to prosecution. Always file on time.
BIR60 is the Salaries Tax return form issued by the IRD every May. If you earned HK$132,000+ (single) or had provisional tax deducted, you must file it by end of June (extendable). It covers the April–March tax year.
The standard filing deadline is 30 June each year. If you receive a BIR60 in May, it must be filed by 30 June. The IRD will grant an extension if requested in writing before the deadline.
Using the calculator: roughly HK$2,500–5,000 depending on deductions (MPF, allowances). For example, HK$300K salary − HK$18K MPF − HK$132K allowance = HK$150K chargeable = ~HK$2,500 tax. Use our calculator for your exact situation.
Net Chargeable Income = Salary − MPF − Deductions − Personal Allowances. This is the amount on which progressive tax rates are applied. Lowering it (by claiming deductions/allowances) reduces your tax bill.
Yes. Home loan interest on your principal residence is deductible up to HK$100,000 per year for up to 20 years. Keep mortgage statements as proof. This can save you significant tax if you're a homeowner.
Most fresh graduates pay zero tax because the HK$132,000 basic allowance covers typical entry-level salaries. Only if you earn significantly above this (or work multiple jobs) will you owe tax. Almost 50% of HK workers pay no salaries tax.
Claim up to HK$100,000 for courses/exams related to your current job (e.g. HKICPA, CFA, professional certifications). Keep all receipts and enroll details. File in your tax return. This can easily save HK$5,000–17,000 in annual tax.