Hong Kong residents. File photo: Kyle Lam/HKFP.

Hong Kong residents will receive a maximum HK$3,000 reduction in salaries tax for the 2025-26 assessment year – double the previous cut – finance chief Paul Chan has said during his annual budget speech.

Residents shop for flowers before the Lunar New Year holiday in Prince Edward's flower market on February 13, 2026. Photo: Kyle Lam/HKFP.
Residents shop for flowers before the Lunar New Year holiday in Prince Edward’s flower market on February 13, 2026. Photo: Kyle Lam/HKFP.

In addition, businesses will get up to HK$3,000 profits tax reduction in 2025-26, Chan also said on Wednesday.

Both salaries and profits tax concessions were capped at HK$1,500 in the previous fiscal year.

Around 2.12 million taxpayers and 171,000 businesses will benefit from the tax cuts, the finance minister said.

The measures are to “relieve the economic pressure faced by the people and enterprises,” he added.

The increased tax perks come as Chan estimates that the Hong Kong government will log a HK$2.9 billion budget surplus this year following three consecutive years of fiscal deficits.

Rates concessions for both domestic and non-domestic properties will be capped at HK$500 each for the first two quarters of 2026-27, he said.

The concessions will affect around 3.15 million domestic properties and 440,000 non‑domestic properties.

Recipients of the government’s social security schemes, including the Comprehensive Social Security Assistance and Old Age Allowance, will receive an extra month’s payment, Chan added.

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