Hong Kong Salaries Tax Personal Allowances: 2025/26 Complete Guide

Personal Allowances Under Hong Kong Salaries Tax: Complete 2025/26 Guide

Understanding and correctly claiming personal allowances is the cornerstone of minimising your Hong Kong salaries tax liability. For the 2025/26 year of assessment (covering income earned from 1 April 2025 to 31 March 2026), the Inland Revenue Department (IRD) offers a range of allowances designed to reduce your net chargeable income. This guide provides a comprehensive, practical overview of all available allowances, who qualifies, and how to ensure you claim everything you are entitled to.

What Are Personal Allowances and How Do They Work?

Personal allowances are specific amounts you can deduct from your total income when calculating your salaries tax. They are not refunds or credits but deductions that lower your "net chargeable income," which is the amount actually subject to tax. Hong Kong uses a progressive tax system (capped at the standard rate) on net chargeable income, so reducing this figure directly lowers your tax bill. It is the taxpayer's responsibility to claim these allowances, typically by completing the relevant sections of your annual tax return (BIR60).

Complete List of Personal Allowances for 2025/26

The following allowances apply for the year of assessment 2025/26. The values are set by the IRD and are subject to change in future budgets.

Basic Allowances

Basic Allowance: HK$132,000. Available to every taxpayer.
Married Person's Allowance: HK$264,000. Available if you were married at any time during the year and your spouse had no net chargeable income. You and your spouse cannot both claim the basic allowance; one must claim the married person's allowance.

Dependent-Related Allowances

Child Allowance: HK$120,000 per child. For each unmarried child under 18, or over 18 but under 25 and in full-time education, or of any age if incapacitated. The allowance is shared between parents.
Brother or Sister Allowance: HK$37,500 per dependent. For each brother or sister you maintain, subject to age, education, and parental income conditions.
Dependent Parent or Grandparent Allowance: HK$50,000 per dependent. For each parent/grandparent aged 60 or above, or aged 55–59 who qualifies for the Government's Disability Allowance.
Additional Dependent Parent or Grandparent Allowance: HK$50,000 per dependent. An additional allowance for each parent/grandparent aged 60 or above who you maintained and who ordinarily resided with you continuously throughout the year.

Special Allowances

Single Parent Allowance: HK$132,000. Available if you were not married for the whole year or were separated/divorced, and you maintained a child for whom you were entitled to a child allowance.
Disabled Dependant Allowance: HK$75,000 per dependent. An additional allowance for each dependent (child, sibling, parent, grandparent) who is eligible for the Government's Disability Allowance.

Who is Affected and Eligible to Claim?

Any individual liable to pay Hong Kong salaries tax is affected. This includes employees, office holders, and pension recipients deriving income from Hong Kong employment. Eligibility for each specific allowance depends on meeting the strict conditions set by the IRD regarding relationship, maintenance, residence, age, and income of the dependent. You must maintain the dependent, which generally means you provide substantial financial support.

Key Deadlines and How to Claim

Allowances are claimed annually via your tax return. The key timeline for the 2025/26 year is:

Early May 2026: IRD issues tax returns (BIR60 forms).
Early June 2026: Deadline for paper returns.
Early July 2026: Deadline for e-filing via "Tax Easy".

To claim, you must accurately complete Part 8 (Personal Allowances) of the return. Ensure you have supporting documents, such as birth certificates, marriage certificates, proof of residence, and evidence of financial support, as the IRD may request them for verification.

Practical Tips for Maximising Your Allowances

Review Annually: Family circumstances change (births, marriages, parents moving in). Review your eligibility each tax year.
Understand "Maintenance": Keep records of financial support like bank transfers, payment of medical bills, or school fees for dependents.
Optimise Between Spouses: If both spouses have income, calculate whether claiming the Married Person's Allowance (with the lower-earning spouse claiming zero) or both claiming the Basic Allowance results in a lower combined tax bill.
Claim All Eligible Dependents: Don't overlook dependent grandparents or siblings you support, or the additional allowance for co-resident elderly parents.
Report Changes Promptly: Inform the IRD if your marital status or dependency situation changes during the year, as it may affect your provisional tax.

Common Mistakes to Avoid

Claiming the Basic Allowance when you are eligible and should claim the Married Person's Allowance.
Failing to claim the Additional Dependent Parent Allowance for a parent who lives with you.
Incorrectly claiming for a child over 18 who is not in full-time education.
Not keeping adequate proof of maintenance for dependents.

Conclusion

Effectively navigating Hong Kong's personal allowances can lead to significant tax savings. By understanding the 2025/26 allowances, maintaining good records, and claiming accurately on your tax return, you ensure full compliance while legally minimising your tax liability. When in doubt about your specific eligibility, consult a qualified tax professional for advice tailored to your situation.