Quick answer
Hong Kong has no VAT, GST, estate duty or gift tax in 2026. Its specific taxes are stamp duty on property (HKD 100 up to HKD 4 million, 4.25% at the top, 6.5% on homes above HKD 100 million), 0.1% stamp duty per side on shares, 15% property tax on rent, rates on property and a 3% hotel tax.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
Heavnn
Stay tax compliant, wherever you work
Answer a few questions and get a clear plan for your own situation.
Find my savings →You know Hong Kong has no VAT and low income tax. Now you want to know what else hits your wallet when you rent, buy a flat, trade shares or book a hotel. This guide covers each specific tax that matters in 2026, its rate, who pays, and the legal ways to keep it low.
Hong Kong specific taxes in 2026: the key figures
| Tax | 2026 rule | Legal basis |
|---|---|---|
| Ad valorem stamp duty on property | HKD 100 up to HKD 4 million, stepping up to 4.25%; 6.5% on residential property above HKD 100 million (from 26 February 2026) | Stamp Duty Ordinance (Cap. 117) |
| Stamp duty on Hong Kong stock | 0.1% of the consideration on each bought note and each sold note | Cap. 117 |
| Stamp duty on leases | 0.25% to 1% of the yearly rent depending on term; stamp within 30 days | Cap. 117 |
| Property tax on rental income | 15% of net assessable value (rent less owner-paid rates, less a 20% allowance) | Inland Revenue Ordinance (IRO) |
| Rates and Government rent | Rates: 5% of rateable value (homes: 5%, 8%, 12% bands); Government rent: 3% | Rating and Valuation Department rules (secondary source) |
| Hotel accommodation tax | 3% of the accommodation charge since 1 January 2025 | Hotel Accommodation Tax Ordinance (Cap. 348) |
| Excise duties | Only tobacco, liquor, methyl alcohol and hydrocarbon oil | Dutiable Commodities Ordinance (Cap. 109) |
| VAT/GST, estate duty, gift tax | None | — |
What changed for 2026
- Higher stamp duty on luxury homes. The 2026-27 Budget raises the top rate on residential property above HKD 100 million from 4.25% to 6.5%, for instruments executed on or after 26 February 2026. The IRD already publishes the new scale, and notes the change still depends on the amending legislation (IRD Budget measures).
- Rates concession for 2026/27. Rates are waived for the first two quarters of 2026/27, capped at HKD 500 per property, for domestic and non-domestic properties (Budget speech).
- Electric private car concession ended. The first registration tax concession for electric private cars was not extended beyond its end-March 2026 expiry.
- Pending stamp duty reliefs. Wider intra-group relief and a waiver for property moved into new listed REITs are proposed but not yet enacted.
Is this guide for you?
Read on if you…
- plan to buy, rent or let a flat in Hong Kong and want the full tax cost of the deal;
- trade Hong Kong-listed shares or run a small business and wonder what indirect taxes apply;
- compare Hong Kong with countries that charge VAT, wealth tax or inheritance tax.
Probably not your case if you…
- want the income tax rates (see personal income tax in Hong Kong);
- need the two-tier profits tax (see corporate income tax in Hong Kong).
Does Hong Kong have VAT or sales tax?
No. Hong Kong charges no VAT, GST or general sales tax. For you that means shop prices are final, business invoices carry no tax line, and freelancers have no indirect tax registration or returns.
That also means no reverse charge when you buy foreign software or services. If you bill clients in the EU, UK or Australia, their own VAT or GST rules may still apply on their side.
There is also no estate duty and no gift tax, which matters if you hold assets in Hong Kong for the long term. Revenue comes instead from stamp duties, property taxes, a short list of excise duties and a few levies.
How much stamp duty do you pay on property in Hong Kong?
Buyer's Stamp Duty no longer applies to instruments executed on or after 28 February 2024 (IRD BSD FAQ). Today residents and non-residents, individuals and companies pay the same ad valorem stamp duty (AVD). The IRD AVD FAQ sets this scale from 26 February 2026:
| Price or value (higher of the two) | Duty |
|---|---|
| Up to HKD 4,000,000 | HKD 100 |
| HKD 4,323,781 to 4,500,000 | 1.5% |
| HKD 4,935,481 to 6,000,000 | 2.25% |
| HKD 6,642,861 to 9,000,000 | 3% |
| HKD 10,080,001 to 20,000,000 | 3.75% |
| HKD 21,739,121 to 100,000,000 | 4.25% |
| Residential above HKD 109,574,470 | 6.5% |
The gaps between bands are marginal relief zones. There, duty equals the lower band's maximum plus a share of the excess, so crossing a threshold never costs more than the extra price. For example, between HKD 4,000,001 and 4,323,780 you pay HKD 100 plus 20% of the excess over HKD 4 million.
Who pays? The buyer, the seller and anyone using the instrument are jointly and severally liable, whatever the contract says. In practice the buyer usually pays. The agreement must be stamped within 30 days of signing.
Flipping is still a tax question. With the Special Stamp Duty gone for new deals, quick resales can still be taxed as trading profits. See capital gains tax in Hong Kong.
Leases
Tenancy agreements must be stamped within 30 days of signing. The IRD stamping guide sets the duty:
- term up to 1 year: 0.25% of the total rent for the term;
- 1 to 3 years: 0.5% of the yearly or average yearly rent;
- over 3 years: 1% of the yearly or average yearly rent;
- undefined or uncertain term: 0.25% of the yearly or average yearly rent.
Stamping late costs two times the duty within a month, four times within two months, and ten times after that.
What do you pay for owning or renting out property?
Rates and Government rent
Rates are a quarterly charge on property, based on its rateable value, the official estimate of annual market rent. Non-domestic property pays 5% of rateable value. Homes pay 5% on the first HKD 550,000, 8% on the next HKD 250,000 and 12% above that. Government rent adds 3% of rateable value on most land leases. These percentages come from PwC's Hong Kong summary (secondary), as the Rating and Valuation Department site was unreachable.
The owner is liable by law, but many tenancies pass rates to the tenant. Read your lease.
Property tax on rental income
If you let a Hong Kong property in your own name, you pay property tax at 15% of the net assessable value. That is gross rent, minus rates you paid as owner and irrecoverable rent, minus a flat 20% allowance for repairs and outgoings (IRD property tax FAQ).
Mortgage interest is not deductible here. You can only use it by electing personal assessment on your BIR60, where it is capped at the property's net assessable value. A company owner can instead claim exemption if the rent is already taxed as profits.
Which duties and levies hit your everyday spending?
Stamp duty on shares
Buying or selling Hong Kong stock costs 0.1% of the consideration on every bought note and every sold note (IRD FAQ). Your broker collects it. Contract notes must be stamped within two days of a deal done in Hong Kong.
Excise duties
Customs and Excise collects duty under the Dutiable Commodities Ordinance (Cap. 109) on only four groups: tobacco, liquor, methyl alcohol and hydrocarbon oil. Most everyday goods carry no duty at all. Rates per product change by Budget, so check Customs and Excise before importing in bulk.
Hotel accommodation tax
Hotels and guesthouses charge 3% on the accommodation charge, collected again since 1 January 2025 (IRD hotel tax FAQ). Hotels with fewer than 10 rooms for guests are exempt.
Business registration
Every business pays a business registration fee and levy: HKD 2,350 for a one-year certificate starting in 2026/27 (IRD fee table). The structures are compared in legal forms of business in Hong Kong.
Crypto held as an investment faces no gains tax and no VAT; see cryptocurrency taxes in Hong Kong.
How do you legally pay less?
- Watch the HKD 4 million line. Below it, stamp duty is HKD 100. At HKD 4.5 million it is HKD 67,500.
- Elect personal assessment as a landlord with a mortgage. You can then offset mortgage interest and use your allowances.
- Stamp leases on time. Late stamping multiplies the duty, and an unstamped lease kills the domestic rent deduction covered in personal tax deductions and benefits of Hong Kong.
- Check who pays rates. A lease that shifts rates to the tenant changes your net yield and your property tax base.
Example – Nadia, 36, UX designer buying and letting a flat
Nadia, a non-permanent resident, buys a HKD 8 million flat in June 2026. It falls in the 3% band: stamp duty HKD 240,000, the same as a permanent resident pays. She lets it for two years at HKD 25,000 a month (HKD 300,000 a year), tenant paying rates. Lease stamp duty: 0.5% of HKD 300,000, so HKD 1,500. Property tax: 15% of HKD 240,000 (after the 20% allowance) is HKD 36,000. Her mortgage interest is HKD 180,000. Under personal assessment, net rental income becomes HKD 60,000; at her 17% marginal rate that is HKD 10,200. She saves HKD 25,800 a year.
Nadia's flat touched four separate taxes before the first rent arrived. Yours probably will too.
Heavnn finds your savings across stamp duty, property tax and personal assessment in Hong Kong.
Find my savings →Common mistakes (and what they cost)
- Paying property tax when personal assessment is cheaper → landlords with a mortgage can overpay tens of thousands of dollars a year, as Nadia's HKD 25,800 shows.
- Assuming Buyer's Stamp Duty still applies → non-residents delay purchases for nothing; it does not apply to instruments executed from 28 February 2024.
- Stamping a lease late → the penalty reaches ten times the duty, and an unstamped lease cannot be used in court.
- Ignoring the new luxury band → on a HKD 120 million home the top rate is 6.5% instead of 4.25%, an extra HKD 2.7 million.
Frequently asked questions
Is there VAT or sales tax in Hong Kong?
No. Hong Kong has no VAT, GST or general sales tax, and businesses have no indirect tax registration or returns. Indirect revenue comes from stamp duty on property and shares, excise duty on tobacco, liquor, methyl alcohol and hydrocarbon oil, the 3% hotel accommodation tax, and fees such as business registration.
How much stamp duty do foreigners pay on property in Hong Kong in 2026?
The same as permanent residents. Buyer's Stamp Duty does not apply to instruments executed from 28 February 2024. Everyone pays ad valorem stamp duty: HKD 100 up to HKD 4 million, then 1.5%, 2.25%, 3%, 3.75% and 4.25%, with 6.5% on homes above HKD 100 million from 26 February 2026.
What is property tax in Hong Kong?
Property tax is 15% of the net assessable value of a let Hong Kong property. That is gross rent, minus rates the owner paid and irrecoverable rent, minus a flat 20% allowance for repairs. Mortgage interest is only usable through personal assessment. Companies taxed on the rent as profits can claim exemption.
What are rates in Hong Kong and who pays them?
Rates are a quarterly charge based on a property's rateable value, its estimated annual rent. Homes pay 5%, 8% and 12% in bands; non-domestic property pays 5%. Government rent adds 3%. The owner is liable by law, but tenancies often pass rates to tenants. For 2026/27, two quarters are waived up to HKD 500.
Is there a tax on buying shares in Hong Kong?
Yes. Stamp duty is 0.1% of the consideration on every bought note and every sold note for Hong Kong stock, so buyer and seller each pay. Your broker collects it. There is no capital gains tax on investment profits and no tax on dividends received.
Related guides
- Capital gains tax in Hong Kong – why there is none and when trading is taxed.
- Personal tax deductions and benefits of Hong Kong – the rent and home loan deductions.
- Legal forms of business in Hong Kong – business registration and setup fees.
- Cryptocurrency taxes in Hong Kong – no VAT, no gains tax, but trading rules.
- Tax landscape overview of Hong Kong – every Hong Kong tax on one page.
- Specific taxes in the Philippines and in Sri Lanka – how the region compares.
- All country tax guides
Sources
- Ad valorem stamp duty FAQ – Inland Revenue Department
- 2026-27 Budget tax measures – Inland Revenue Department
- Stamping of tenancy agreements (IRSD 119) – Inland Revenue Department
- Completion of property tax return FAQ – Inland Revenue Department
- Hotel accommodation tax FAQ – Inland Revenue Department
- 2026-27 Budget speech, Supporting People and Enterprises – HKSAR Government
- Hong Kong SAR – Other taxes, PwC Worldwide Tax Summaries (secondary)
This guide is general information, not personalised tax advice. See how we research and review.
Find your savings on Hong Kong property, shares and duties.
Heavnn checks your stamp duty, property tax election and deductions for 2026.
Start with Heavnn →
