Hong Kong Financial Secretary Paul Chan Mo-po announced a series of taxpayer-friendly measures in his 2026-27 Budget address on Wednesday, including increases in personal allowances and tax reductions.
The basic allowance and single parent allowance will be raised from HK$132,000 ($16,880) to HK$145,000, while the married person’s allowance will increase from HK$264,000 to HK$290,000. This adjustment is expected to benefit 2.09 million taxpayers and reduce government tax revenue by HK$3.56 billion annually.
In addition, salaries tax and tax under personal assessment for 2025/2026 will be reduced by 100 percent, subject to a ceiling of HK$3,000. The concession will be reflected in the final tax payable and is anticipated to benefit 2.12 million taxpayers, with an estimated revenue forgone of HK$5.3 billion.
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On the rates front, the Budget proposes a concession for the first two quarters of the 2026/2027 year of assessment on rates payable for both domestic and non-domestic properties, capped at HK$500 for each ratable property. This measure benefit an estimated 3.15 million domestic properties and 440,000 non-domestic properties, resulting in a reduction in government revenue of HK$3.1 billion for domestic properties and HK$400 million for non-domestic properties.
