Where your tax goes

Who pays tax?

In 2023/24, about 53% of working people were charged salaries tax. Taxpayers with income over HK$1 million were only 12.1% of taxpayers, but paid 69.2% of salaries tax. (our calculation) SourcesInland Revenue Dept, p.11Census and Statistics Dept, p.2Inland Revenue Dept, p.60

A few high earners pay most of the salaries tax

Who paid salaries tax, 2023/24 year of assessment

Share of all salaries tax; calculated from IRD income bands. p.60 p.11

  1. Income of HK$300,000 or less 0.8% 29.3% of taxpayers
  2. Income over HK$1 million 69.2% 12.1% of taxpayers
  3. Taxed at the standard rate 27.8% 1.4% of taxpayers
See counts and all income groups

Who paid salaries tax, 2023/24 year of assessment

The first three rows add up the Inland Revenue Department's income bands (our calculation).

TaxpayersShare of taxpayersShare of salaries taxPeople
Income of HK$300,000 or less p.60 p.1129.3%0.8%575,322
Income over HK$1 million p.60 p.1112.1%69.2%238,526
of whom: over HK$1.5 million p.60 p.115.7%52.8%111,150
Taxed at the standard rate p.111.4%27.8%26,719

Out of 1,965,135 taxpayers and HK$89.0 billion of final salaries tax, after that year's one-off reduction. The Inland Revenue Department's latest breakdown is for 2023/24. p.11

How we got "about half"

For the 2023/24 year of assessment, 1,965,135 people were charged salaries tax p.11, out of 3,709,600 people in work in 2023 p.2: about 53% (our calculation). Another 908,000 people had a salary but owed nothing after allowances p.4.

For 2025/26, the Budget expects about 2,120,000 taxpayers to benefit from the one-off reduction p.93, out of about 3,670,000 people in work p.109: about 58% (our calculation). The number in work includes foreign domestic helpers.

Caveats: the Inland Revenue Department counts taxpayers before that year's one-off tax reduction, so the 1,965,135 include people who ended up paying nothing, such as all 156,017 with income of HK$132,001 to HK$200,000 p.60. The Budget's figure of about 2,120,000 covers both salaries tax and tax under personal assessment p.93. So both ratios are rough.

The highest-income tenth of households pays most of the tax

The 2021 Census split households into ten equal groups by income. The highest-income tenth paid 77.6% of all salaries tax and property tax p.87. The lowest-income fifth of households paid none p.87. This is the latest breakdown of its kind.

The highest-income tenth pays most salaries and property tax

2021 Census, by household income tenth. p.51 p.87

  1. 1st (lowest) nil Median income HK$2,860
  2. 2nd nil Median income HK$7,630
  3. 3rd 0.0% Median income HK$12,410
  4. 4th 0.2% Median income HK$18,040
  5. 5th 0.3% Median income HK$24,030
  6. 6th 1.0% Median income HK$31,240
  7. 7th 2.0% Median income HK$40,210
  8. 8th 5.2% Median income HK$52,720
  9. 9th 13.7% Median income HK$73,210
  10. 10th (highest) 77.6% Median income HK$131,360
See monthly tax and the full figures

Income is original household income (before tax and benefits), including households with foreign domestic helpers. Symbols used in the Census and Statistics Department's report: "Nil": the report prints "–", meaning nil. "Under HK$10": the report prints "*", meaning less than HK$10. "0.0%": less than 0.05%. p.24

How is household income distributed?

Where does the median household sit?

Half of households have an income below about HK$30,000 a month. The highest group (HK$100,000 a month or more) has 272,400 households, more than any other. p.17 p.47

Number of households by monthly household income

April to June 2026. Income of all household members combined. The line marks the median. Statistic

  1. Under HK$4,000 157,500
  2. HK$4,000–5,999 112,700
  3. HK$6,000–7,999 99,800
  4. HK$8,000–9,999 178,400
  5. HK$10,000–14,999 187,500
  6. HK$15,000–19,999 227,500
  7. HK$20,000–24,999 220,000
  8. HK$25,000–29,999 178,600
  9. Median HK$30,000 a month p.17
  10. HK$30,000–34,999 183,800
  11. HK$35,000–39,999 147,700
  12. HK$40,000–44,999 133,000
  13. HK$45,000–49,999 107,300
  14. HK$50,000–59,999 188,800
  15. HK$60,000–79,999 253,900
  16. HK$80,000–99,999 145,300
  17. HK$100,000 or more 272,400

The groups are not the same width (HK$2,000 at the bottom, open-ended at the top), so compare bar lengths with care. The groups below the median hold 1,362,000 households, 48.7% of the total (our calculation). Census and Statistics Dept, p.47

Show the numbers as a table

Households by monthly income, April to June 2026

Monthly household incomeHouseholdsShare of households (our calculation)
Under HK$4,000 p.47157,5005.6%
HK$4,000–5,999 p.47112,7004.0%
HK$6,000–7,999 p.4799,8003.6%
HK$8,000–9,999 p.47178,4006.4%
HK$10,000–14,999 p.47187,5006.7%
HK$15,000–19,999 p.47227,5008.1%
HK$20,000–24,999 p.47220,0007.9%
HK$25,000–29,999 p.47178,6006.4%
HK$30,000–34,999 p.47183,8006.6%
HK$35,000–39,999 p.47147,7005.3%
HK$40,000–44,999 p.47133,0004.8%
HK$45,000–49,999 p.47107,3003.8%
HK$50,000–59,999 p.47188,8006.8%
HK$60,000–79,999 p.47253,9009.1%
HK$80,000–99,999 p.47145,3005.2%
HK$100,000 or more p.47272,4009.7%
All households p.172,794,200100%

How much salaries tax would you pay? Three examples

These incomes are examples we chose, not statistics. We assume 12 months' pay, no bonus, and no deductions other than mandatory MPF contributions. The 2025/26 year has the one-off reduction; 2026/27 has the new, higher allowances, and we assume no reduction.

Salaries tax to pay (our calculation)

Example2026/272025/26Difference
Single, earning HK$30,000 a monthHK$15,580HK$14,700+HK$880
Married with two children, one earner on HK$60,000 a monthHK$7,200HK$9,920−HK$2,720
Median-income household: married, one earner on HK$30,000 a month p.17HK$1,120HK$0+HK$1,120

The median-income household pays little because HK$30,000 is the income of the whole household. A single worker on the median employment earnings of HK$21,000 a month p.1 would pay HK$3,664 for 2026/27 and HK$1,740 for 2025/26 (our calculation).

Want to try your own income? Use the calculator on the home page to see where your tax goes.

Workings: Single, earning HK$30,000 a month

2026/27 year of assessment

Income for the year
HK$360,000
Less: mandatory MPF contributions (5%, capped at HK$18,000)
−HK$18,000 web p.107
Net income
HK$342,000
Less: Basic allowance
−HK$145,000 p.107
Net chargeable income
HK$197,000
Tax at progressive rates2% × 50,000 + 6% × 50,000 + 10% × 50,000 + 14% × 47,000
HK$15,580 p.1
Tax at the standard rate (net income × 15%)
HK$51,300 p.1
The lower of the two
HK$15,580
Salaries tax to pay
HK$15,580

2025/26 year of assessment

Income for the year
HK$360,000
Less: mandatory MPF contributions (5%, capped at HK$18,000)
−HK$18,000 web p.107
Net income
HK$342,000
Less: Basic allowance
−HK$132,000 p.107
Net chargeable income
HK$210,000
Tax at progressive rates2% × 50,000 + 6% × 50,000 + 10% × 50,000 + 14% × 50,000 + 17% × 10,000
HK$17,700 p.1
Tax at the standard rate (net income × 15%)
HK$51,300 p.1
The lower of the two
HK$17,700
Less: one-off reduction (100%, capped at HK$3,000)
−HK$3,000 p.93
Salaries tax to pay
HK$14,700
Workings: Married with two children, one earner on HK$60,000 a month

2026/27 year of assessment

Income for the year
HK$720,000
Less: mandatory MPF contributions (5%, capped at HK$18,000)
−HK$18,000 web p.107
Net income
HK$702,000
Less: Married person's allowance
−HK$290,000 p.107
Less: Child allowance (2 × HK$140,000)
−HK$280,000 p.107
Net chargeable income
HK$132,000
Tax at progressive rates2% × 50,000 + 6% × 50,000 + 10% × 32,000
HK$7,200 p.1
Tax at the standard rate (net income × 15%)
HK$105,300 p.1
The lower of the two
HK$7,200
Salaries tax to pay
HK$7,200

2025/26 year of assessment

Income for the year
HK$720,000
Less: mandatory MPF contributions (5%, capped at HK$18,000)
−HK$18,000 web p.107
Net income
HK$702,000
Less: Married person's allowance
−HK$264,000 p.107
Less: Child allowance (2 × HK$130,000)
−HK$260,000 p.107
Net chargeable income
HK$178,000
Tax at progressive rates2% × 50,000 + 6% × 50,000 + 10% × 50,000 + 14% × 28,000
HK$12,920 p.1
Tax at the standard rate (net income × 15%)
HK$105,300 p.1
The lower of the two
HK$12,920
Less: one-off reduction (100%, capped at HK$3,000)
−HK$3,000 p.93
Salaries tax to pay
HK$9,920
Workings: Median-income household: married, one earner

2026/27 year of assessment

Income for the year
HK$360,000
Less: mandatory MPF contributions (5%, capped at HK$18,000)
−HK$18,000 web p.107
Net income
HK$342,000
Less: Married person's allowance
−HK$290,000 p.107
Net chargeable income
HK$52,000
Tax at progressive rates2% × 50,000 + 6% × 2,000
HK$1,120 p.1
Tax at the standard rate (net income × 15%)
HK$51,300 p.1
The lower of the two
HK$1,120
Salaries tax to pay
HK$1,120

2025/26 year of assessment

Income for the year
HK$360,000
Less: mandatory MPF contributions (5%, capped at HK$18,000)
−HK$18,000 web p.107
Net income
HK$342,000
Less: Married person's allowance
−HK$264,000 p.107
Net chargeable income
HK$78,000
Tax at progressive rates2% × 50,000 + 6% × 28,000
HK$2,680 p.1
Tax at the standard rate (net income × 15%)
HK$51,300 p.1
The lower of the two
HK$2,680
Less: one-off reduction (100%, capped at HK$3,000)
−HK$2,680 p.93
Salaries tax to pay
HK$0
Rates: what does a home pay?

Rates: what does a home pay?

Rates are a tax on property, usually 5% of rateable value web. For homes with a rateable value above HK$550,000, the part above is charged at higher rates of 8% and then 12% web.

For the first two quarters of 2026-27, rates on each home are reduced by up to HK$500 a quarter. This covers about 3,150,000 domestic properties and costs about HK$3.1 billion p.93.

Average rates a year, all homes, before the concession Estimate
HK$7,332 p.106
Average rates a year, all homes, after the concession Estimate
HK$6,372 p.106
Average saving (our calculation)
HK$960 p.106
Average rates a year, public housing, after the concession Estimate
HK$2,484 p.106

Averages are per rated domestic property (including residential parking spaces), not per household.

How big is salaries tax in government revenue?

Salaries tax is a small slice of 2026-27 government revenue: 12.8% (our calculation) p.1 p.7. See where the money comes from