Tax Saving Tips: Allowances & Deductions
Below are the common tax allowances and deduction limits for the 2025/26 year of assessment that can help employees save on their taxes. If applicable, be sure to fill out the designated sections on your tax return to claim these deductions. Taxpayers should also retain all relevant supporting documents in case the tax authority requests them for verification.
Allowances
- Basic Allowance: HK$132,000
- Married Person's Allowance: HK$264,000
- Child Allowance: HK$130,000 per child (HK$260,000 for a child born in the current tax year)
- Dependent Parent / Grandparent Allowance: HK$25,000 - $100,000 (depends on age and whether residing together continuously)
- Disabled Dependant Allowance: HK$75,000
- Single Parent Allowance: HK$132,000
- Personal Disability Allowance: HK$75,000
Deductions
- MPF Mandatory Contributions: Max HK$18,000
- Tax Deductible MPF (TVC) & Qualifying Annuity Premiums (QDAP): Combined max HK$60,000
- Voluntary Health Insurance Scheme (VHIS) Premiums: Max HK$8,000 per insured person
- Approved Charitable Donations: Max 35% of assessable income
- Expenses of Self-Education: Max HK$100,000
- Domestic Rent Deduction: Max HK$100,000 - HK$120,000
- Home Loan Interest: Max HK$100,000 - HK$120,000
- Elderly Residential Care Expenses: Max HK$100,000
You can think of these deductions and allowances as 'discount coupons'. While they don't directly offset your tax bill, they help lower your assessable income. For a complete list of allowances and deductions, check out the 《Guide to Tax Deductions, Allowances & Incentives in Hong Kong》 - specifically the section on Salaries Tax.
Tax Filing & Payment Timeline
- May: The IRD issues the Tax Return - Individuals (Form BIR60).
- 1 Month Later: The general filing deadline (extensions are available if you file online via eTAX or use a tax representative).
- August to November: The IRD issues the Notice of Assessment (your tax bill).
- January & April (Following Year): Deadlines for paying your "Final Tax" and "Provisional Tax" (usually split into two installments).
Payment Methods (Online, ATM, Cheque, PPS, FPS)
Paying your Salaries Tax in Hong Kong is simple, fast, and convenient. Here are the main methods:
- Online Payment
- Log in to the IRD e-Services portal or your eTAX account.
- Pay via bank transfer, credit card, or FPS.
- Transactions are processed instantly, and an electronic receipt is provided.
- Bank Counter / ATM
- Bring your tax bill to a designated bank.
- Alternatively, pay at an ATM by entering your Shroff Account Number (the payee/bill number printed on your tax bill).
- By Cheque (Mail)
- Make the cheque payable to "The Government of the Hong Kong Special Administrative Region".
- Mail the cheque to the IRD along with the payment slip attached to your tax bill. Tip: Remember to write your Shroff Account Number on the back of the cheque.
- PPS (Payment by Phone Service)
- Through a PPS-enabled ATM, phone, or online, select "Bill Payment" → "Inland Revenue Department", and enter your Shroff Account Number to complete the payment.
- FPS (Faster Payment System)
- No need to log in to eTAX. Simply open your mobile banking app and scan the FPS QR code printed on your tax bill, or enter the bill number to transfer the funds directly.
