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HK Property Stamp Duty: Scale 2 AVD Rates & Rules (2026)

HK Property Stamp Duty: Scale 2 AVD Rates & Rules (2026)

By Kenneth Wong, Senior Real Estate Tax SpecialistLast updated: October 202615 min read
Statutory source alignment verified for October 2026 by Kenneth Wong, Senior Real Estate Tax Specialist (Statutory Research)

Quick Executive Summary: Post-Cooling Measure Stamp Duty

  • Cooling Measures Abolished: Following the landmark 2024 Budget and sustained fiscal reforms, the Hong Kong government abolished Buyer's Stamp Duty (BSD), Special Stamp Duty (SSD), and New Residential Stamp Duty (NRSD).
  • Universal Scale 2 AVD: All residential property buyers—whether first-time local buyers, second-home investors, foreign expatriates, or corporate entities—now pay standard Scale 2 Ad Valorem Stamp Duty (AVD).
  • Flat HK$100 Entry Band: Homes valued at or below HK$3,000,000 incur a symbolic flat stamp duty of just HK$100.
  • Progressive Scaling: Rates scale gradually from 1.5% to a maximum headline rate of 4.25% for properties exceeding HK$21.74 million.

What are the Current Hong Kong Property Stamp Duty (Scale 2 AVD) Rates?

Following the abolition of property cooling measures, all residential property transactions in Hong Kong are taxed under Scale 2 Ad Valorem Stamp Duty (AVD). Rates start at a flat HK$100 for properties valued up to HK$3 million, progressing in tiers up to 4.25% for properties exceeding HK$21,739,120.

The removal of punitive property curbs marked a turning point for the Hong Kong real estate market. Previously, a foreign national purchasing a residential apartment faced up to 30% in combined Buyer's Stamp Duty and Ad Valorem taxes. Today, the tax landscape has reverted to a unified, transparent regime.

Below are the official statutory Scale 2 Ad Valorem Stamp Duty (AVD) rate bands:

Property Consideration / Value (HK$)Standard RateMarginal Relief Formula
Up to HK$3,000,000HK$100 (Flat Fee)N/A
HK$3,000,001 – HK$3,528,2401.50%HK$100 + 10% of excess over HK$3,000,000
HK$3,528,241 – HK$4,500,0001.50%Standard Rate
HK$4,500,001 – HK$4,935,4802.25%HK$67,500 + 10% of excess over HK$4,500,000
HK$4,935,481 – HK$6,000,0002.25%Standard Rate
HK$6,000,001 – HK$6,642,8603.00%HK$135,000 + 10% of excess over HK$6,000,000
HK$6,642,861 – HK$9,000,0003.00%Standard Rate
HK$9,000,001 – HK$10,080,0003.75%HK$270,000 + 10% of excess over HK$9,000,000
HK$10,080,001 – HK$20,000,0003.75%Standard Rate
HK$20,000,001 – HK$21,739,1204.25%HK$750,000 + 10% of excess over HK$20,000,000
Exceeding HK$21,739,1204.25% (Top Rate)Full 4.25% applied to entire price

How Did the Abolition of BSD and SSD Change Hong Kong Stamp Duty?

The abolition of cooling measures removed three major artificial friction points in the Hong Kong real estate market:

  • Buyer's Stamp Duty (BSD) Abolished: Previously, non-Hong Kong permanent residents (including foreigners, mainland Chinese buyers, and corporate entities) paid an extra 7.5% (and earlier up to 15%) BSD surcharge. This is now completely abolished.
  • New Residential Stamp Duty (NRSD) Abolished: The punitive 7.5% flat duty previously levied on buyers acquiring their second or subsequent residential property was eliminated. Existing homeowners can now buy additional properties without punitive surcharges.
  • Special Stamp Duty (SSD) Abolished: Homeowners were previously penalized with a 10% to 20% resale tax if they sold a property within 24 months of purchase. The elimination of SSD allows immediate resale without any punitive time-locked holding penalties.

How Do You Calculate Ad Valorem Stamp Duty with Marginal Relief?

Marginal relief prevents sharp tax spikes at the threshold boundaries between rate bands. Taxpayers are charged the tax payable on the lower band plus a percentage (typically 10%) of the excess consideration above that band limit.

Case Study: How Marginal Relief Saves Cash at HK$3.2 Million

Suppose an expat purchases an apartment in Sha Tin for HK$3,200,000.

Standard 1.5% Rate: HK$3,200,000 × 1.5% = HK$48,000.

Marginal Relief Formula: HK$100 + 10% × (HK$3,200,000 − HK$3,000,000) = HK$100 + HK$20,000 = HK$20,100.

The buyer pays only HK$20,100—saving HK$27,900 in upfront stamp duty!

When is Property Stamp Duty Payable to the Inland Revenue Department?

Under the Stamp Duty Ordinance, stamp duty on residential property transactions must be paid to the Stamp Office of the Inland Revenue Department within 30 days of executing the formal Sale and Purchase Agreement.

Failing to stamp property instruments within the statutory 30-day window triggers punitive late stamping surcharges under Section 9 of the Stamp Duty Ordinance:

  • Delay up to 1 month: Penalty of 2 times the stamp duty amount.
  • Delay between 1 and 2 months: Penalty of 4 times the stamp duty amount.
  • Delay exceeding 2 months: Maximum penalty of 10 times the stamp duty amount.

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