How take-home pay is worked out
This calculator turns a monthly salary into what you actually keep each month in the 2026/27 year of assessment (1 April 2026 to 31 March 2027). It uses the same rules as our salaries tax calculator and MPF calculator.
- MPF comes off every payslip. Your mandatory contribution is 5% of your monthly relevant income. If you earn less than $7,100 a month you pay nothing; above $30,000 a month it is capped at $1,500.
- Work out the year's salaries tax. Income for the year is 12 × monthly salary plus any bonus. MPF contributions are deducted (up to $18,000), then allowances (basic $145,000 for 2026/27, or the married person's allowance of $290,000 if your spouse has no taxable income), and the lower of the progressive and standard-rate tax is used.
- Spread the tax over 12 months. Annual tax ÷ 12 is the amount to set aside each month.
- Take-home pay = monthly salary − your MPF − the monthly tax set-aside.
Hong Kong employers do not deduct salaries tax from your salary. The IRD sends you a bill (final tax plus provisional tax for the next year), and you pay it yourself. So the "tax" line here is what you should put aside, not something your employer takes.
Worked example: $40,000 a month, single, 2026/27
| Monthly salary | $40,000 |
|---|---|
| Your MPF (capped) | $1,500 |
| Income for the year | $480,000 |
| Less MPF deduction (max $18,000) | $18,000 |
| Less basic allowance | $145,000 |
| Net chargeable income | $317,000 |
| Tax: $16,000 + 17% × $117,000 | $35,890 |
| Tax set-aside per month (÷ 12) | $2,990.83 |
| Take-home per month | $35,509.17 |
Standard-rate check: 15% × $462,000 = $69,300, which is higher, so progressive rates apply.
Worked example: $25,000 a month
MPF 5% × $25,000 = $1,250. Year: $300,000 − $15,000 MPF − $145,000 = $140,000 net chargeable income. Tax = $1,000 + $3,000 + 10% × $40,000 = $8,000, or $666.67 a month. Take-home = $25,000 − $1,250 − $666.67 = $23,083.33.
What this calculator does not cover
- A spouse with taxable income (use the salaries tax calculator, which compares separate and joint assessment).
- Dependent parent allowances and other allowances not listed in the form (the salaries tax calculator has parents).
- Voluntary MPF contributions, housing benefits, share awards and other non-cash benefits.
- Any 2026/27 tax reduction: none had been announced as of 21 Oct 2026.
- The timing of tax bills: in practice provisional tax for the next year is billed together with this year's tax.
Frequently asked questions
Does my employer deduct salaries tax from my pay?
No. In Hong Kong your employer deducts only your MPF contribution. You pay salaries tax yourself when the IRD issues your tax demand note, so it is wise to set the monthly amount aside.
Why is my MPF capped at $1,500?
The maximum relevant income level is $30,000 a month, so the employee's 5% contribution can never be more than $1,500 a month.
Does a bonus change my MPF?
Yes, a bonus is relevant income for the month it is paid. If your salary is already at or above $30,000 that month, your contribution stays at $1,500. Otherwise it rises, up to the cap.
Which year's allowances are used?
2026/27 by default: basic allowance $145,000, married person's allowance $290,000 and child allowance $140,000 each. You can switch to 2025/26, which also applies that year's $3,000 tax reduction.
Is my data stored?
No. Everything is worked out in your browser.
Official sources
Every figure on this page was checked against these pages on 21 Oct 2026.