How Hong Kong property tax is worked out
Owners of land or buildings in Hong Kong that are let out pay property tax on the rental income. It is charged at the standard rate of 15% (2008/09 onwards) on the net assessable value (NAV) for each year of assessment (1 April to 31 March).
- Rental income for the year (A).
- Less irrecoverable rent (B) → assessable value (C = A − B).
- Less rates paid by the owner (D) → E = C − D. Government rent is not deductible.
- Less the 20% statutory allowance for repairs and outgoings (F = E × 20%) → NAV = E − F.
- Property tax = NAV × 15%.
The 20% allowance is given automatically and is all-inclusive: you cannot also claim government rent, decoration, rent-collection fees, management fees, insurance or mortgage interest. (If you are eligible for and elect personal assessment, mortgage interest can be claimed there – not covered by this calculator.)
Worked example 1 (GovHK): $10,000 a month, tenant pays rates
| Assessable value (12 months) | $120,000 |
|---|---|
| Less 20% allowance | $24,000 |
| NAV | $96,000 |
| Property tax for 2025/26 @ 15% | $14,400 |
| Add provisional property tax for 2026/27 | $14,400 |
| Total on the notice | $28,800 |
Worked example 2 (GovHK): let from 1 July, $30,000 a month, owner pays $12,000 rates
| Assessable value (9 months) | $270,000 |
|---|---|
| Less rates paid by owner | $12,000 |
| $258,000 | |
| Less 20% allowance | $51,600 |
| NAV | $206,400 |
| Property tax @ 15% | $30,960 |
| Provisional tax next year: $206,400 × 12/9 = $275,200 × 15% | $41,280 |
| Total on the notice | $72,240 |
What this calculator does not cover
- Personal assessment (which can allow mortgage interest and personal allowances).
- Co-owned and jointly owned properties: tax is worked out on the whole property; how it is shared is not covered.
- Lump-sum premiums, rent recovered from earlier years and other special receipts.
- Any tax reduction: the IRD states the 2025/26 one-off reduction does not apply to property tax, and none has been announced for 2026/27 as of 21 Oct 2026.
- Payment dates and holdover of provisional tax.
Frequently asked questions
What is the property tax rate in Hong Kong?
15% of the net assessable value, for 2008/09 onwards.
Can I deduct mortgage interest or management fees?
Not under property tax. The 20% statutory allowance covers repairs and all outgoings. Mortgage interest can only be claimed if you are eligible for and elect personal assessment.
Are rates deductible?
Yes, if you as owner agreed to pay them and paid them. Government rent charged on the same demand is not deductible, and rates already offset by a rates concession should not be claimed.
Does the 2025/26 $3,000 tax reduction apply to property tax?
No. The IRD's 2026-27 Budget page says the reduction is not applicable to property tax, although eligible individuals with rental income may benefit through personal assessment.
Why is there a provisional tax amount?
The IRD collects provisional property tax for the next year based on this year's NAV (grossed up to 12 months if letting started during the year). It is set against the final tax later.
Official sources
Every figure on this page was checked against these pages on 21 Oct 2026.