How ad valorem stamp duty (AVD) is worked out
When you buy property in Hong Kong, the agreement for sale and the assignment must be stamped. The main duty is ad valorem stamp duty (AVD), a percentage of the price or the market value, whichever is higher. The rates below apply to instruments signed on or after 26 February 2026, when a 6.5% rate for homes above $100 million and a separate Scale 3 for non-residential property were introduced.
- Find the band your price falls into.
- Most bands charge one rate on the whole price (for example 3% of $8,000,000).
- Just above each step there is a short marginal relief band. It stops the duty jumping suddenly: you pay the duty at the top of the band below, plus a percentage of the amount over it.
- If the result includes a fraction of a dollar, it is rounded up to the next dollar.
AVD rates from 26 February 2026
| Value up to (HK$) | Residential (Part 1 of Scale 1 and Scale 2) | Non-residential (Scale 3) |
|---|---|---|
| 4,000,000 | $100 | $100 |
| 4,323,780 | $100 + 20% of the excess over $4,000,000 | $100 + 20% of the excess over $4,000,000 |
| 4,500,000 | 1.5% | 1.5% |
| 4,935,480 | $67,500 + 10% of the excess over $4,500,000 | $67,500 + 10% of the excess over $4,500,000 |
| 6,000,000 | 2.25% | 2.25% |
| 6,642,860 | $135,000 + 10% of the excess over $6,000,000 | $135,000 + 10% of the excess over $6,000,000 |
| 9,000,000 | 3% | 3% |
| 10,080,000 | $270,000 + 10% of the excess over $9,000,000 | $270,000 + 10% of the excess over $9,000,000 |
| 20,000,000 | 3.75% | 3.75% |
| 21,739,120 | $750,000 + 10% of the excess over $20,000,000 | $750,000 + 10% of the excess over $20,000,000 |
| 100,000,000 | 4.25% | 4.25% |
| 109,574,470 | $4,250,000 + 30% of the excess over $100,000,000 | 4.25% (no higher tier) |
| above | 6.5% | 4.25% (no higher tier) |
Since 28 February 2024 the rates under Part 1 of Scale 1 have been the same as Scale 2, so for residential property it no longer matters for AVD whether you are a first-time buyer or a Hong Kong permanent resident.
Worked examples
Flat at $8,000,000: falls in the 3% band ($6,642,861 – $9,000,000). AVD = 3% × $8,000,000 = $240,000.
Flat at $4,200,000: falls in the marginal relief band. AVD = $100 + 20% × ($4,200,000 − $4,000,000) = $40,100. (A flat 1.5% would be $63,000 – the relief band smooths the step.)
Flat at $4,400,000: 1.5% band. AVD = 1.5% × $4,400,000 = $66,000.
Flat at $25,000,000: 4.25% band. AVD = 4.25% × $25,000,000 = $1,062,500.
House at $150,000,000: residential 6.5% = $9,750,000. If it were non-residential, Scale 3 tops out at 4.25% = $6,375,000.
What this calculator does not cover
- Other duties that may apply in particular cases, and the fixed $100 duty on an assignment after the agreement has been stamped.
- Exemptions and refunds (for example transfers between close relatives, or the refund when you replace your only home).
- The 2026 Policy Address proposal for a stamp duty waiver (capped at $20,000) for families with a child born on or after 16 September 2026. It needs legislation first, so it is not included.
For the official figure use the IRD's stamp duty computation service.
Frequently asked questions
How much stamp duty do I pay on a $6 million flat in Hong Kong?
$6,000,000 falls in the 2.25% band, so AVD is 2.25% × $6,000,000 = $135,000.
Is there still a higher rate for second homes?
Not for AVD. Since 28 February 2024 Part 1 of Scale 1 uses the same rates as Scale 2.
What changed on 26 February 2026?
The rate for residential property above $100 million rose from 4.25% to 6.5% (with a marginal relief band up to $109,574,470), and non-residential property moved to a new Scale 3 that stays at 4.25% at the top.
Is AVD based on the price or the valuation?
On the consideration or the market value of the property, whichever is higher.
Who is liable to pay?
Under the law the buyer, the seller and anyone who uses the instrument are jointly and severally liable, although the parties usually agree between themselves who pays.
When must the agreement be stamped?
Generally within 30 days after it is signed.
Official sources
Every figure on this page was checked against these pages on 21 Oct 2026.