# Salaries Tax Calculator Hong Kong 2026/27 — MPF & take-home

Source page: https://valem.run/calculators/hong-kong/net-salary

Your Hong Kong take-home pay is your salary minus your 5% MPF contribution (between the $7,100 and $30,000 monthly levels) and salaries tax, which is the lower of progressive rates on income after allowances and the 15% standard rate on income before them.

**Tax year:** 2026/27

## How it is calculated

Salaries tax is computed **two ways and you pay the lower**. Progressive rates of 2%, 6%, 10% and 14% on successive $50,000 bands, then 17%, apply to *net chargeable income* — income after deductions **and** allowances. The standard rate, 15% on the first $5 million and 16% above it, applies to *net income* — after deductions but with **no** allowances. Only very high earners end up on the standard rate.

From the year of assessment 2026/27 the allowances rose for the first time in years: the basic allowance from $132,000 to **$145,000**, the married person’s allowance to $290,000 and the child allowance to $140,000 per child. IRD’s own example: $480,000 of salary, $18,000 of MPF and the basic allowance leave $317,000 chargeable, and tax of **$35,890**.

The employee’s **MPF** contribution is 5% of relevant income, but only between the $7,100 and $30,000 monthly levels: below $7,100 the employee pays nothing, above $30,000 it is capped at $1,500 a month. That makes $7,100 a genuine step — a pay rise across it starts a $355 monthly contribution at once. Mandatory contributions are deductible up to $18,000 a year.

Salaries tax is not withheld from pay: it is assessed after the year, with provisional tax for the next year on top. One-off reductions (100% capped at $3,000 for 2025/26) are announced in each February’s Budget, so none is assumed for 2026/27. Estimate, not tax advice.

## Worked example

With Gross annual salary of 480,000 HKD, this model computes Net / year 426,110 HKD.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `grossAnnual` | Gross annual salary (HKD) | number |
| `household` | Allowance | string |
| `children` | Children you claim for | number |

## Sources

- [Inland Revenue Department, A guide to Salaries Tax (pam39e) — progressive and two-tiered standard rates, the 2026/27 basic and married person’s allowances and the MPF deduction, with worked 2026/27 examples](https://www.ird.gov.hk/eng/pdf/pam39e.pdf) (checked 2026-10-12)
- [Inland Revenue Department, 2026-27 Budget — Tax Measures (FAQ): allowances from 2026/27, including the child allowance of $140,000 for each of the 1st to 9th child](https://www.ird.gov.hk/eng/faq/budget2026_27.htm) (checked 2026-10-12)
- [MPFA, Mandatory contributions — employees: 5% of relevant income between the minimum and maximum relevant income levels](https://www.mpfa.org.hk/en/mpf-system/mandatory-contributions/employees) (checked 2026-10-12)

## What this page claims

The Valem engine reproduces this model's formula through 6 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/hong-kong/net-salary.json
- Compute by URL: https://valem.run/calculators/hong-kong/net-salary.json?grossAnnual=480000
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `hong-kong/net-salary`)