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Property Tax Calculator

Calculate Hong Kong property tax on rental income.

Hong KongProperty TaxTax Period: April 1 – March 31 (Assessment Year)
Statutory source alignment verified for April 1 – March 31 (Assessment Year) by Finsiva Research & Methodology (Statutory Research)
Statutory Rule & Definition• Verified for April 1 – March 31 (Assessment Year)

Hong Kong Property Tax Calculator: Under statutory guidelines established by Inland Revenue Department (IRD), calculate hong kong property tax on rental income. Calculations for April 1 – March 31 (Assessment Year) determine precise marginal brackets, statutory rate percentages, allowable deductions, and net post-tax retained amounts.

Calculator Input

Rent that cannot be recovered from tenants

Your calculation results will appear here.

Enter your details above and click Calculate to see your estimated tax.

Hong Kong Property Tax Framework (Section 5 IRO)

The Hong Kong Property Tax Calculator computes individual and corporate rental property tax under Section 5 of the Inland Revenue Ordinance. Applying the standard 15% statutory rate to Net Assessable Value after statutory 20% statutory repairs allowance and irrecoverable rent deductions, it benchmarks savings achievable via Personal Assessment election.

Hong Kong levies Property Tax on owners of land and buildings situated in the territory who derive rental income from letting real estate. Governed by Part II of the Inland Revenue Ordinance, Property Tax is charged at the standard rate of 15% on the property's Net Assessable Value (NAV). Unlike salaries tax, no personal allowances (such as basic or child allowances) apply directly to property tax assessments unless the owner elects for Personal Assessment (PA).

Hong Kong Property Tax Computation Waterfall Gross Rent Rental Receipts + Service Fees Rates Paid Less Rates paid by Landlord Statutory 20% 20% Outgoings Automatic Deduction 15% Tax 15% NAV Effective: 12%

Example Calculation

HK$240,000 Annual Rental Income, 2025/26

Annual Rental Income:240000
Irrecoverable Rent:0
Year of Assessment:2025/26

Result

Gross Rental Income:HK$240,000.00
Standard Deduction:HK$48,000.00
Net Assessable Value:HK$192,000.00
Property Tax:HK$28,800.00
Effective Rate:12%

Standard deduction = 20% x $240,000 = $48,000. NAA = $192,000. Tax = 15% x $192,000 = $28,800.

Calculation Methodology

Property Tax

Net Assessable Value x 15%

Standard rate on net rental income after 20% standard deduction

How to Use the Hong Kong Property Tax Calculator

Understanding Results

Taxable Income: Income subject to tax after deductions.
Tax Amount: Total tax liability.
Effective Rate: Tax as a percentage of your total income.
Take-Home Pay: Income after tax.

Property Tax Computation Formula

The statutory computation of Property Tax liability under Section 5(1A) of the IRO:

Gross Rental Income = Total rental receipts + service charges paid to owner

Assessable Value (AV) = Gross Rental Income - Rates paid by owner - Irrecoverable Rent

Net Assessable Value (NAV) = Assessable Value - (Assessable Value × 20% Statutory Outgoings Allowance)

Property Tax Payable = Net Assessable Value × 15%

Note: Because of the 20% statutory outgoings allowance, the effective tax rate on Assessable Value is 12.0% (80% × 15%).

Example Calculation

Let's say you have an annual income of HK$300,000.

After applying the Hong Kong property tax rules and deductions, your estimated tax liability and take-home pay will be calculated automatically by the tool above. Try entering your own values to see personalized results.

Property Tax Benchmark Scenarios

Scenario A: Residential Buy-to-Let Flat (HK$240,000 Annual Rent)

Input: HK$20,000/month rent, no default.
Assessable Value: HK$240,000.
Statutory 20% Deduction: HK$48,000.
Net Assessable Value (NAV): HK$192,000.
Property Tax @ 15%: HK$192,000 × 15% = HK$28,800 (Effective Rate: 12.00%).

Scenario B: Commercial Shop with Tenant Default (HK$600,000 Rent, HK$50,000 Default)

Input: HK$600,000 gross rent minus HK$50,000 bad debt.
Assessable Value: HK$550,000.
Statutory 20% Deduction: HK$110,000.
Net Assessable Value (NAV): HK$440,000.
Property Tax @ 15%: HK$440,000 × 15% = HK$66,000.

Scenario C: High-Value Landlord Electing Personal Assessment (HK$1,200,000 Rent)

Input: HK$1,200,000 rent with HK$180,000 mortgage interest.
Standard Property Tax: HK$1,200,000 × 80% × 15% = HK$144,000.
Under Personal Assessment: Landlord can deduct HK$180,000 mortgage interest and utilize personal allowances, significantly reducing total tax liability.

Personal Assessment & Corporate Exemption

Strategic elections can reduce or eliminate standard 15% property tax liabilities:

  • Personal Assessment (PA) Election: Hong Kong permanent residents and temporary residents can elect PA to aggregate rental income with salaries/profits and deduct mortgage interest on let properties.
  • Corporate Ownership Exemption: Corporate property owners subject to Profits Tax can apply under Section 25 of the IRO for property tax exemption or credit property tax paid against profits tax liability.
  • Repairs Allowance Inflexibility: The 20% statutory outgoings allowance is fixed by statute; landlords cannot claim actual maintenance expenses even if they exceed 20%.

Tax Slabs

Hong Kong Property Tax slabs vary based on income level and taxpayer profile. Use this calculator to determine your exact liability under current rules.

Common Mistakes

  • Not updating inputs for the correct tax year.
  • Using incorrect residency or employment status.
  • Forgetting to account for all income sources.
  • Not considering eligible deductions and reliefs.

Frequently Asked Questions

How is Net Assessable Value (NAV) determined for Hong Kong property tax?
Net Assessable Value is calculated by taking gross rental income, deducting municipal rates paid by the owner and irrecoverable rent, and subtracting a statutory 20% allowance for repairs and outgoings.
What is the statutory 20% allowance for repairs and outgoings?
Section 5(1A) of the IRO automatically provides a flat 20% deduction from assessable rental income to cover maintenance, repairs, management fees, and property expenses, regardless of actual expenses incurred.
When should an individual property owner elect for Personal Assessment?
An individual landlord should elect for Personal Assessment if they pay mortgage interest on the rental property, earn income below personal allowance thresholds, or have business losses to offset against rental income.
Can corporations offset property tax against profits tax?
Yes. Under Section 25 of the IRO, corporations letting property can elect to have rental profits assessed under Profits Tax (where actual expenses are deductible) or claim a full credit for property tax paid.
What happens if a tenant defaults on rent in Hong Kong?
Any rent proved to be irrecoverable can be deducted from gross rental income in the Year of Assessment it becomes bad debt. If recovered subsequently, it must be reported in the year of recovery.
Are government rents and management fees deductible from property tax?
Government rates paid by the owner are statutory deductions. However, Government Rent (paid to the Lands Department) and building management fees are not directly deductible; they are deemed covered by the statutory 20% outgoings allowance.

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Suggested Articles

Hong Kong Property Tax Guide

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Related Country

Official Government Resources

Always verify tax calculations with the latest information from official government sources.

Educational Disclaimer

This calculator is provided for informational and educational purposes only. It does not constitute legal, financial, or tax advice. Tax laws are complex and subject to change. Always consult a qualified tax professional or your local tax authority for advice specific to your circumstances.

Finsiva Financial Editorial Board
Finsiva Financial Editorial Board
Financial Content & Tax Research

Finsiva researches tax rules and calculation parameters using official government sources and reviews financial content for accuracy, methodology, and statutory changes.