Complete Guide to Tax and Tax Loans in Hong Kong
First time paying tax and not sure how to do so? Want to apply for a tax extension?Did you know there are ways to earn rebates when paying tax? This Complete Guide on Tax by MoneySmart covers everything that you need to know.
(Click here to read the Chinese version 點擊此處閱讀中文版 交稅攻略)
What is eTax?
Since 2000, the Inland Revenue Department introduced online tax filing services with aims to provide tailored services for taxpayers, including filing taxes, calculating taxes, getting electronic tax bills, paying taxes, viewing tax forms online, checking their personal tax records, and getting in touch with the tax department.
To access the above mentioned service, it is required to apply for an eTax password using your ID card number and tax file number (apply on the eTax password application website). You will receive an activation password to your registered address within two days. Good to know: filing your tax return electronically via eTAX automatically grants you a one-month extension to submit your return. Check out the Tax loan products!
Why do we need to pay tax?
Tax is used to help funding government spending on public services such as medical, education, housing and the welfare system, etc.
When do we need to pay tax?
| Month | What to expect? |
|---|---|
| May- June | Individual Tax Returns for issued (typically early May) |
| June- July | Return the Tax Return within 1 month from the date of issue. E-filing via eTAX gives an automatic one-month extension |
| October | Notice of Assessment issued |
| January next year | 1st tax instalment due (75% of provisional salaries tax) |
| April next year | 2nd tax instalment due (remaining 25%) |
Compare Tax Loans in Hong Kong
How can I pay tax in Hong Kong?
| Payment Method | Details |
|---|---|
| Credit Card | Pay your tax bill through online banking or mobile apps by credit cards. Some credit cards even offer rebates for tax payment. |
| FPS | Pay your tax bill through a mobile banking app or e-wallet that supports Government FPS bill payments simply by scanning the QR code on the IRD bills. |
| PPS | Pay your tax bill through the PPS hotline at 18031, online or “PPS on Mobile”. The merchant code for IRD is “10”. |
| ATM | Pay at any ATM with the “Bill Payment” signage or the “JET PAYMENT” logo and pay by selecting the “Bill Payment” function and enter your account number and payment amount. |
| Online Banking | Login to your online banking, select bill payment and enter payment amount. |
| e-Cheque / e-Cashier Order | Visit the “Pay e-Cheque” portal government website, select Inland Revenue Department and the relevant bill type, enter the bill information and then upload e-Cheque in order to make payment. |
| Post | Cheque needs to be crossed and made payable to “The Government of the Hong Kong Special Administrative Region” or “The Government of the HKSAR”. |
| Convenience Stores | Present the barcode on the IRD bills at any 7-Eleven Convenience Store, Circle K Convenience Store, VanGO Convenience Store and China Resources Vanguard Supermarket in Hong Kong and make bill payments. Please note that you can only make payments up to HK$5,000 per transaction. |
Can I pay tax by credit card?
Tax payment can be made by credit cards. Some banks like HSBC, Hang Seng, Citibank, etc usually offer attractive cashbacks/ miles when you make tax payments using designated credit cards. If you want to get the most of these offers, please stay tuned to MoneySmart’s website. We will provide you with the latest information to save you time and money!
How is Salaries Tax computed in Hong Kong?
| Net chargeable income | Rate | Tax |
|---|---|---|
| On the First HK$50,000 | 2% | HK$1,000 |
| On the Next HK$50,000 | 6% | HK$3,000 (Cumulative: HK$4,000) |
| On the Next HK$50,000 | 10% | HK$5,000 (Cumulative: HK$9,000) |
| On the Next HK$50,000 | 14% | HK$7,000 (Cumulative: HK$16,000) |
| Remainder | 17% | -- |
The standard rate is now two-tiered: since 2024/25 it is 15% on the first HK$5,000,000 of net income and 16% on the remainder above HK$5,000,000.
You may also qualify for tax allowances, such as a basic allowance of HK$132,000 for 2025/26 (rising to HK$145,000 from 2026/27) or a married person's allowance of HK$264,000, which reduce your taxable income.
Who has to pay tax? Do expats need to pay tax in Hong Kong?
An employee is subject to salaries tax if his or her salary is sourced in Hong Kong, even for non-residents or non-permanent residents.
What can I do if I do not have enough money to pay tax?
If you do not have enough money to pay tax, you can apply for tax loan or tax relief to reduce the immediate tax burden. Tax loan refers to loans offered by banks or lending companies to help tax payers to pay tax. However, there is actually no limit on how to utilize the tax loan borrowed. Some people use them for purposes such as weddings and home renovation.
Tax allowances and deductions
The more you earn, the more tax you pay, right? Not necessarily. Depending on your family circumstances, you can enjoy a basic allowance, a married person's allowance, a child allowance and other dependent allowances. Certain expenses are also tax-deductible, which can lower your tax bill:
- MPF Voluntary Contributions (TVC) — On top of your mandatory monthly MPF contributions, you can make Tax Deductible Voluntary Contributions (TVC) for a maximum tax-deductible amount of HK$60,000 per year.
- Deferred annuity — Certified deferred and immediate annuity schemes approved by the Insurance Authority are tax-deductible.
- Voluntary Health Insurance Scheme (VHIS) — Certified VHIS plans are tax-deductible up to HK$8,000 per insured person annually.
- Rent — Taxpayers who rent their home and do not own residential property in Hong Kong can deduct up to HK$100,000 per year of assessment.
- Home loan interest — Homeowners paying a mortgage can claim a deduction on home loan interest.
- Self-education expenses — Eligible self-education course fees can be deducted.
- Donations — Donations to tax-exempt charities (or the government for charitable purposes) are tax-deductible.
How to apply for tax extension?
You need to apply in writing. Taxpayer is required to download and complete the relevant parts of the Form IR1121 and send it to the Inland Revenue Department by post. You can apply for tax relief on one of the following grounds:
- Entitled to a new allowance
- Your net chargeable income is likely to be less than 90% of the net chargeable income for the preceding year
- You have assessed to provisional salary tax and have paid or are likely to pay for tax-deductible expenses
- You have ceased to derive income chargeable to salaries tax
- You have objected to your salaries tax assessment
Citi Tax Season Loan
- APR*
- 1.56%
- Total Amount Payable
- HK$203,360
- Total Interest Payable
- HK$3,360
- Monthly Payment
- HK$8,473
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New customers who successfully apply from 1 October to 11 October 2026 and draw down the loan on or before 14 November 2026 can choose their favourite MoneySmart-exclusive reward: HK$16,300 Apple Store Gift Card / ParknShop e-Vouchers / HKTVmall e-Vouchers / Cash, or rewards worth up to HK$9,999, including a 360° drone.
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- APR*
- 1.65%
- Total Amount Payable
- HK$201,536
- Total Interest Payable
- HK$1,536
- Monthly Payment
- HK$8,397
Difference between tax loan and personal loan
| Tax Loan | Personal Loan | |
|---|---|---|
| Application Period | Between October to April next year | 365 days a year |
| Repayment Period | 12 months | Up to 72 months |
| Interest Rate | Lower than P Loan | Higher than Tax Loan |
| Loan Amount | 10-12x monthly salary | 18-20x monthly salary |
Things you should know about Tax Loans in Hong Kong
1. APR
2. Terms and Conditions
3. Promotion Period
4. Interest Rate will be Affected by Credit Rating
5. Tax Loan is not only for Tax Payment
6. New Customers Offers/ Online Offers
7. Watch out for advertised "as low as" rates
8. Check for hidden fees and early-repayment penalties
9. Applying affects your credit score
Low-Interest Loan Alternatives to Tax Loans
WeLend AI Personal Loan (Tax Season Applicable)
- The lowest APR
- 1%
- Total Amount Payable
- HK$205,760
- Total Interest Payable
- HK$5,760
- Monthly Payment
- HK$8,573
✨ HK$1,600 Application Bonus + Extra HK$200 Apple Store Gift Card 🍎
💰 HK$1,600 Cash Reward + extra HK$200 Apple Store Gift Card regardless of approval
⚡Up to HK$14,000 rewards upon loan amount of HK$300,001
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Warning: You have to repay your loans. Don't pay any intermediaries.
WeLab Bank Personal Instalment Loan (Promo Code "NLSMRT")
- APR as low as*
- 1.66%
- Total Amount Payable
- HK$206,720
- Total Interest Payable
- HK$6,720
- Monthly Payment
- HK$8,613
【Tax Season Flash Sales⚡HK$1,500 Cash regardless of approval 】
From 8 October until 14 October 2026, successfully apply WeLab Bank Personal Instalment Loan via MoneySmart promo code 「NLSMRT」to enjoy:
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⚠️ APR as low as 1.66%
🤑 Total rewards of up to HK$31,048
📝 Free and unlimited access to credit score assessments.
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To borrow or not to borrow? Borrow only if you can repay!
X Cash.AI by X Wallet (promo code MS18000)
- APR as low as*
- 1.15%
- Total Amount Payable
- HK$202,496
- Total Interest Payable
- HK$2,496
- Monthly Payment
- HK$8,437
[Limited Time] Get HK$1,500 voucher / HK$3,498 reward + extra HK$200 Apple Store Gift Card regardless of approval 🍎
From 1 October to 11 October 2026, new customer apply for X Wallet X Cash.AI via MoneySmart and enter promo code "MS18000" to enjoy HK$1,500 voucher / HK$3,498 reward +HK$200 Apple Store Gift Card regardless of approval 🍏 Total rewards worth up to HK$21,698 🏆
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Apply for X Cash.AI by X Wallet with promo code「MS18000」 and achieve the highest score among X Walle eligible participants to win an extra 🏆 iPhone 18 Pro Max 256 GB! If you also top the overall leaderboard, you could take home up to 2 new smartphones!
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Visit the campaign page for details. T&Cs apply.
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Warning: You have to repay your loans. Don't pay any intermediaries.
UA i-Money Internet Personal Loan
- APR as low as
- 1.1%
- Total Amount Payable
- HK$202,304
- Total Interest Payable
- HK$2,304
- Monthly Payment
- HK$8,429
【October Exclusive Offer】Get HK$900 Cash Reward or Gifts Worth Up to HK$2,380 — Regardless of Approval* ✨
From now until 31 October 2026, both new and existing customers¹ who successfully apply for and draw down a UA i-Money Internet Personal Loan via MoneySmart can enjoy:
1️⃣ [Regardless of Approval*🪄] Moneysmart Exclusive reward after submitting all required documents:
・HK$900 cash (automatically converted by 9,000 SmartPoints) and will directly deposit into your FPS account; or
・HK$900 Apple Store Gift Card; or
・HK$1,000 Parknshop e-Voucher / HKTVmall e-Voucher; or
・OSIM uErgoh Air (Value: HK$2,380, random color) or
・TEA CHÂTEAU Modern Tea Machine Set (Value: HK$1,838) or
・POLAROID Now Generation 3 i-Type Instant Camera (Value: HK$1,199, random color)
2️⃣ Loan Drawdown Reward - enjoy up to HK$18,000 in cash rewards ^
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Warning: You have to repay your loans. Don't pay any intermediaries.
Tax and Tax Loan FAQ
What happens if I miss the tax deadline?
- If you fail to pay your tax on time, the Commissioner of Inland Revenue has the right to initiate recovery actions which include imposing a 5% surcharge on the entire balance of the demand notice, taking legal action, etc.
What is the interest rate of a tax loan?
- The tax loan interest is usually lower than personal loans, though the exact rate varies by lender, loan amount and repayment period. Always compare the APR rather than the advertised "as low as" rate.
What is a tax loan?
- A Tax loan is a loan used to pay income tax bills and reduce the impact of penalties as a result of late or non-payment of tax bills.
When is the tax loan launched?
- Tax loan is usually launched between October- April next year. If you don’t want to miss these offers, please stay tuned to MoneySmart’s website.
What is eTax?
- It is an online platform by the Inland Revenue Department that provides tailored services for taxpayers e.g. filing taxes, calculating taxes, getting electronic tax bills, etc.
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