Hello! If you live and work in Hong Kong as an expat or strong foreign worker, this is tax time for 2026. The tax office (Inland Revenue Department or IRD) has immigration many things. Now they use a two-level tax rate. Everyone must file taxes online using eTax. For the tax year 2025/26, you cannot just send a simple paper form. You need to follow the new rules step by step.
Maybe you are a digital nomad who stays in Hong Kong for short time. Or you earn a lot of money and now face the 16% tax rate. Or you plan to leave Hong Kong soon. This guide uses very simple English. It explains everything you need to know. It helps you follow the rules and save money on tax if possible.
Understanding the 2026 Hong Kong Tax Landscape
Hong Kong has very low taxes compared to many other places. This is because it only taxes money earned in Hong Kong. Money from jobs or business outside Hong Kong is usually not taxed here. This rule is called Territorial Basis of Taxation. It makes Hong Kong a good place for foreign workers.
You only pay tax on income that comes from Hong Kong work or business. If your job is in another country and you do not work much in Hong Kong, you may pay zero or very little tax.
The Two-Tiered Standard Rate (New for 2025/26)
In the tax year 2025/26, there is a new tax system for people who earn a lot.
Most people pay 15% tax on their income after deductions. But now there is a second level:
- The first HK$5,000,000 of your net income is taxed at 15%.
- Any amount above HK$5,000,000 is taxed at 16%.
This new rule mostly affects people with very high salaries. It is important for top managers, company bosses, and high-level foreign workers. If your income is less than HK$5 million, your tax rate stays at 15%. This change helps the government get more money from very rich people, but keeps taxes low for most workers.
Key Deadlines: When to File Your BIR60
You must send your tax form on time. If you are late, you pay extra money (5% to 10% more). These extra charges come very fast. Write these dates in your 2026 calendar:
- May 4, 2026: The IRD starts sending BIR60 tax forms to most people.
- June 4, 2026: Last day to send paper form (one month after you get it).
- July 4, 2026: Last day to file online with eTax (you get one extra month free).
- January and April 2027: Usual months to pay provisional tax (money you pay early for next year).
Good advice: In 2026, the tax office wants everyone to use eTax online. When you file online, you get 30 more days. The system also shows some information already filled, like your MPF and health insurance payments. This makes it easier and helps you make fewer mistakes.
eTax is easy to use. If you do not have an account, you can make one quickly.
Deductions & Concessions: How to Lower Your Tax Bill
You can pay less tax by claiming deductions. Deductions lower the income that gets taxed. In 2026, there are some helpful ones. Remember to write them on your BIR60 form.
Domestic Rent Deduction
Rent in Hong Kong is very expensive. The government helps by letting you deduct rent from tax. You can claim up to HK$100,000 per year. If you live with your child, you can claim up to HK$120,000 in 2025/26. You need to show proof like rent receipts and live together. This helps many expats who pay high rent.
VHIS & MPF Contributions
These two things help you save tax:
- Voluntary Health Insurance Scheme (VHIS): You pay for health insurance. You can deduct up to HK$8,000 per person for yourself or some family members.
- Mandatory Provident Fund (MPF): Most workers pay 5% of salary to MPF for retirement. You can deduct this payment, up to HK$18,000 per year.
These deductions lower your tax and help you save for health and old age.
New: Assisted Reproductive Services
This deduction started in 2024/25 and is still here in 2026. If you spend money on assisted baby-making treatments (like IVF), you can claim up to HK$100,000. This is very good for couples who want children but need medical help.
There are other deductions too, like interest on home loans or charity donations. But rent, health insurance, MPF, and reproductive services are the main ones for foreign workers.
The “60-Day Rule” and Remote Work
Many people ask: “Do I pay tax if I work from home or remotely for a Hong Kong company?” The answer is the 60-day rule. If you stay in Hong Kong for 60 days or less in the whole tax year, your salary from Hong Kong job is usually free from tax.
But if you stay more than 60 days, you pay tax only for the days you worked in Hong Kong. They divide your income based on days spent here. This is called time-apportionment. Important: The day you arrive counts as 1 full day. The day you leave also counts as 1 full day. Keep records of your travel days, like plane tickets or hotel papers. This rule is very useful for people who travel a lot or work as digital nomads.
Leaving Hong Kong? Don’t Forget Tax Clearance
If you finish your job and want to leave Hong Kong in 2026, you need tax clearance. This uses a form called IR56G. Your employer cannot pay your last salary until this is done.
Here are the simple steps:
- Tell the tax office: Your employer sends IR56G form at least one month before you leave.
- Hold salary: Your employer keeps all your final money (salary, bonus, etc.) until you get a release letter.
- Pay and get release: Go to the IRD office in person. Pay any tax you owe. Then they give you the release letter quickly. After that, your employer pays you the rest.
Do this early so you do not have problems when you leave.
Ready to Master Your 2026 Filing?
Tax time is simple if you follow the dates, use eTax, claim all deductions, and keep your papers. This way you follow the rules and pay less tax when you can.
Do you want a simple checklist for 2026 tax deductions? It can show all the limits for rent, health insurance, MPF, and more. Tell me if you want it!
Disclaimer: This is only information to help you learn. Please check the official IRD website or ask a tax expert before you do anything with your taxes.