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HomeTax & Legal → Hong Kong Tax Guide for Expats 2026 — 15% Cap, 0% CGT and Territorial System Tax
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Hong Kong

Updated April 2026 · ← All tax guides

Source: Inland Revenue Department Hong Kong — Salaries Tax

0%
Capital gains tax
Max 15%
Salaries tax cap
0%
Dividend and interest tax

Hong Kong's territorial tax system

Only income arising in or derived from Hong Kong is taxable. Foreign-source income is not taxable in Hong Kong — investment income earned overseas, rental income on overseas property, overseas employment income — none of these are taxed by Hong Kong's IRD regardless of how long you have lived there.

No wealth tax. No estate duty (abolished 2006). No VAT or GST. No dividend withholding tax. No tax on interest income received by individuals. Hong Kong consistently ranks as one of the most tax-efficient jurisdictions globally for individuals.

Salaries tax — progressive with a 15% cap

Net Chargeable Income (HKD)Rate
First 50,0002%
Next 50,000 (50,001–100,000)6%
Next 50,000 (100,001–150,000)10%
Above 150,00014%
Overall cap15% of net assessable income

Standard personal allowance: HKD 132,000 (2025/26). Additional allowances for married persons, children, dependants and other qualifying expenses. Source: IRD HK — Salaries Tax.

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