Hong Kong tax rates
Asia · headline statutory rates, 2025 · Low tax
In Hong Kong, the top statutory personal income tax rate is 16% (ranked #78 of 96 countries), the headline corporate income tax rate is 16.5%, and the standard VAT/GST rate is Salaries tax capped at 15% standard rate. Capital gains for individuals are treated as: No capital gains tax. Overall it reads as a low tax jurisdiction on headline rates — low headline rates overall. These are statutory top rates, not the effective tax most people pay, and not tax advice — verify with Hong Kong's official tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Hong Kong tax rates at a glance
| Tax | Hong Kong |
|---|---|
| Top personal income tax rate | 16% |
| Corporate income tax rate | 16.5% |
| Standard VAT / GST | Salaries tax capped at 15% standard rate |
| Capital gains (individuals) | No capital gains tax |
| Employee social security | MPF 5% (capped) |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Headline statutory rates (2025), compiled from PwC Worldwide Tax Summaries and cross-checked against OECD / Tax Foundation data. Rates change — confirm with the official tax authority before relying on them. This is not tax advice.
What these Hong Kong rates mean
The figures above are headline statutory rates: the top marginal personal income tax rate, the standard (not reduced) VAT/GST rate, and the main corporate rate. The top 16% income tax rate only bites on income above the highest bracket — the effective rate an average earner pays is lower. There is no broad VAT/GST — salaries tax capped at 15% standard rate. Always layer in social security (MPF 5% (capped)) and any local taxes for a full picture.
How Hong Kong ranks
| Measure | Hong Kong | Rank (1 = highest) |
|---|---|---|
| Top personal income tax | 16% | #78 of 96 |
| Corporate income tax | 16.5% | #68 of 96 |
| Standard VAT/GST | Salaries tax capped at 15% standard rate | — |
Countries with a similar tax level to Hong Kong
The five countries closest to Hong Kong on overall headline tax level:
| Country | Top income tax | Corporate tax | VAT/GST |
|---|---|---|---|
| Hong Kong (this country) | 16% | 16.5% | Salaries tax capped at 15% standard rate |
| Saudi Arabia | 0% (no personal income tax) | 20% | 15% |
| Paraguay | 10% | 10% | 10% |
| Switzerland | 11.5% | 8.5% | 8.1% |
| Bulgaria | 10% | 10% | 20% |
| Jersey | 20% | 0% | 5% |
Frequently asked questions
What is the income tax rate in Hong Kong?
The top statutory personal income tax rate in Hong Kong is 16%. This is the highest marginal rate, which only applies above the top income threshold — most taxpayers pay less. It ranks #78 of 96 countries in our dataset by top rate. Headline rate as of 2025; verify with the official tax authority.
What is the corporate tax rate in Hong Kong?
Hong Kong's headline corporate income tax rate is 16.5%, ranking #68 of 96 by headline corporate rate. Effective rates can differ with incentives, surcharges and local taxes. Verify with the official authority.
Does Hong Kong have VAT or sales tax?
Hong Kong has no standard VAT/GST in our dataset (Salaries tax capped at 15% standard rate).
Is Hong Kong a high-tax or low-tax country?
On headline statutory rates, Hong Kong looks like a low tax jurisdiction — low headline rates overall. This is a rough signal from top rates only, not the effective tax an average person or company pays. Tax residency, deductions and treaties change the real picture. Not tax advice.
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Sources & accuracy
Headline rates for Hong Kong from PwC Worldwide Tax Summaries, cross-checked with the OECD and Tax Foundation. Data as of June 2026; reflects roughly the 2025 tax year. These are statutory headline rates, not effective rates, and this page is general information, not tax advice — verify with Hong Kong's official tax authority and a qualified adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-20