Hong Kong tax calculator: salary after tax and MPF

Start with annual cash salary before deductions. Divide it by 12 to find the equal monthly salary used for MPF. Calculate each monthly employee contribution and add the 12 amounts. Only your own contribution reduces your pay.

Subtract deductible mandatory MPF contributions from annual income to find the tax base. This gives net income. Then subtract the HK$145,000 basic allowance to find net chargeable income. An amount below zero becomes zero.

Calculate progressive tax on net chargeable income and standard-rate tax on net income. Use the lower whole-dollar tax amount. Subtract that tax and your employee MPF from gross salary to find income after annual tax. Divide the result by 12 or 52 for monthly or weekly averages.

Enter ordinary cash salary before salaries tax and MPF. Choose monthly salary if your contract states a monthly amount. A monthly salary of HK$25,000 is HK$300,000 across 12 equal payments.

Keep employer MPF outside the salary amount. Housing benefits, share awards and other noncash benefits need their own tax treatment. A thirteenth-month payment or an irregular bonus can change MPF in the month it is paid, so this equal-pay estimate does not include those payments.

Annual salary divided by 12 can produce a fraction of a cent. The estimate uses that equal monthly amount before rounding the MPF contribution. Your actual monthly salary entries can differ by a few cents. Use your contribution record for the amount you paid.

Progressive tax applies a different rate to each part of net chargeable income. A higher band does not increase the rate on income in the lower bands. The first HK$200,000 of net chargeable income attracts HK$16,000 of tax.

Annual income and deductible MPF amounts exclude cents for the tax calculation. The final tax amount is rounded down to whole Hong Kong dollars. The 2026/27 estimate has no one-off tax reduction. The reduction capped at HK$3,000 belongs to 2025/26 final tax.

The basic allowance is HK$145,000 for 2026/27. It reduces the income charged at progressive rates. It is not a cash payment and does not reduce employee MPF.

A single employee can qualify for other allowances. These can include child, single parent, dependant or personal disability allowances. Being unmarried does not by itself qualify you for the single parent allowance. This estimate includes only the basic allowance, so it can show more tax than you owe if you qualify for another allowance.

The Mandatory Provident Fund, or MPF, is a retirement savings system. An ordinary monthly paid employee pays no employee contribution when monthly relevant income is below HK$7,100. At HK$7,100, the employee contribution starts at 5% of the full salary, or HK$355.

From HK$7,100 to HK$30,000 a month, the employee contribution is 5% of relevant income. Above HK$30,000, it is capped at HK$1,500 a month. Each contribution is rounded to the nearest cent. Twelve capped contributions total HK$18,000.

Mandatory employee contributions reduce taxable income, up to HK$18,000 a year. The deduction uses your contributions, rather than giving every employee the full cap. Your employer pays a separate contribution from its own funds.

The standard-rate calculation uses net income after deductions but before personal allowances. It charges 15% on the first HK$5,000,000 and 16% on the rest. The lower result from this calculation and the progressive calculation is your salaries tax.

The two calculations meet at HK$2,132,500 of net income before tax rounding when only the basic allowance applies. That is HK$2,150,500 gross salary after adding HK$18,000 of employee MPF. Whole-dollar rounding can make nearby tax amounts equal. The standard rates generally give the lower amount at higher salaries.

The result table shows the bands for the method that gives the lower whole-dollar tax. It shows progressive bands when both methods give the same amount. The note beside the table identifies the income used for those bands.

A single employee earns HK$380,000 in equal monthly payments. Each month is above the MPF ceiling, so employee MPF is HK$1,500 a month, or HK$18,000 for the year. Net income is HK$362,000. After the HK$145,000 basic allowance, net chargeable income is HK$217,000.

Progressive tax is HK$16,000 on the first HK$200,000, plus 17% of HK$17,000. This gives HK$18,890. Standard-rate tax is 15% of HK$362,000, or HK$54,300. The lower amount is HK$18,890.

Income after annual tax averages HK$28,592.50 a month or HK$6,598.27 a week. The monthly tax reserve is about HK$1,574.17. These averages do not state what your employer pays into your bank account.

Your annual tax cost and your next tax payment can differ. A salaries tax bill can include final tax for one year and provisional tax for the next year. Provisional tax is a payment towards tax for that next year. Prior provisional payments affect the balance due.

Annual salaries tax divided by 12 gives a starting point for a monthly reserve. Keep that money separate from day-to-day spending. Your tax demand gives the payment amounts and dates. Check these when your salary changes or you receive your first bill.

The annual result subtracts the tax for 2026/27 once. It does not add provisional tax as a second annual expense or calculate the balance on a tax demand.

Compare each offer on the same 12-month basis. Calculate income after tax and employee MPF for each salary, then compare the monthly averages. Subtract your own rent, travel, food and other regular costs to see how much remains.

Record employer retirement contributions and noncash benefits separately. A larger package value does not necessarily give the same increase in spending money. Ask for the cash salary, any bonus terms and any housing benefit amount as separate figures.

A small gross pay rise at the MPF minimum can reduce cash after MPF because the full employee contribution starts at once. Salary increases above the ceiling do not increase the ordinary mandatory employee contribution.

This estimate assumes one Hong Kong employment with all duties in Hong Kong. Ordinary MPF membership applies for all 12 months. Hong Kong has its own tax rules. There is no district tax choice in this calculation. Work outside Hong Kong and part-year residence need separate tax advice.

A new employee has an MPF contribution holiday. MPF exemptions can also apply, including some employees with overseas retirement schemes or short employment permissions. MPF treatment also depends on age and the type of work. These cases are not included here.

Other eligible deductions can include donations, domestic rent, home-loan interest and certain insurance or retirement payments. Family and disability allowances can also reduce tax. Check the IRD eligibility rules before claiming them. The estimate leaves these amounts out.