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Individual - Sample personal income tax calculation
Last reviewed - 28 June 2024Below is a sample salaries tax computation for year of assessment 2024/25 for illustrative purposes.
Assumptions:
- The individual is a married person with two children both below age 18.
- The individual’s spouse is not working and the two children are maintained by the individual.
- The total assessable income of the individual consists of salaries of HKD 650,000 and year-end bonus of HKD 50,000.
- The individual made contributions of HKD 18,000 to an MPF scheme during the year.
- The individual made qualified charitable donations of HKD 3,000 during the year.
| Salaries tax computation | HKD | HKD |
| Salaries | 650,000 | |
| Bonus | 50,000 | |
| Total assessable income | 700,000 | |
| Less: Concessionary deductions | ||
| Charitable donations | (3,000) | |
| Retirement scheme contributions | (18,000) | (21,000) |
| Net income | 679,000 | |
| Less: Allowances | ||
| Married person’s allowance | (264,000) | |
| Child allowances (HKD 130,000 x 2) | (260,000) | (524,000) |
| Net chargeable income | 155,000 | |
| Tax at progressive rates: | ||
| First HKD 50,000 @ 2% | 1,000 | |
| Next HKD 50,000 @ 6% | 3,000 | |
| Next HKD 50,000 @ 10% | 5,000 | |
| Remainder HKD 5,000 @ 14% | 700 | |
| Tax payable (1) | 9,700 |
Note
- The tax amount calculated based on the standard rate (i.e. HKD 679,000 @15% = HKD 101,850) is higher than that computed at progressive rates so the standard rate would not apply. Tax reduction for the year of assessment 2024/25 (if any) has not yet been announced.
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