On 16 September 2026, the Hong Kong Inland Revenue Department (IRD) published a dedicated webpage summarizing the tax-related policy measures for individuals announced in the Chief Executive’s 2026 Policy Address. The Policy Address, delivered earlier in the year, outlined a series of fiscal initiatives aimed at reducing the tax burden on salaried employees and enhancing the competitiveness of Hong Kong’s talent pool. The IRD’s release provides a consolidated reference for taxpayers and practitioners, detailing adjustments to salaries tax allowances, deductions for home loan interest, and enhancements to the tax deduction for voluntary contributions to the Mandatory Provident Fund (MPF). These measures are effective from the year of assessment 2026/27, pending legislative approval where required.
Key Takeaways
- Enhanced Salaries Tax Allowances: The government proposes increasing the basic allowance and single parent allowance, directly reducing the net tax liability for a broad base of individual taxpayers.
- Expanded Deduction for Home Loan Interest: The cap for home loan interest deductions will be raised, providing relief to homeowners amid rising interest rates.
- Increased MPF Voluntary Contribution Deduction: The tax deduction ceiling for voluntary MPF contributions will be lifted, encouraging greater retirement savings among the workforce.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement