Tax Filing

2026 Tax Season Guide: Hong Kong Tax Return Filing Deadlines, Deductions & eTax Tutorial

Author Bowtie 團隊

Updated on 2026-07-29

Every May, Hong Kong employees brace themselves for the arrival of the “green bomb” (the green-enveloped tax return). The 2025/26 year of assessment tax season has officially begun. So, what are the latest tax allowances and deductions available this year? This article provides a comprehensive 2026 tax filing guide, covering the filing schedule, allowance calculation, an eTax online filing tutorial, payment methods, and penalties for late submission. Read on to master the process and maximize your tax savings!

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2026 Tax Filing Schedule: When Will You Receive the “Green Bomb”?

The Inland Revenue Department (IRD) typically issues tax returns for individuals in early May. For the 2025/26 year of assessment, tax returns will be issued on May 4, 2026. Taxpayers are generally required to complete and submit the return within 1 month from the date of issue. However, if you choose to file online via eTax, you will automatically receive an extension of one month.

2026/27 Budget: What Are the Latest Tax Concessions?

According to the 2026/27 Budget, the Government has proposed a 100% reduction of salaries tax and tax under personal assessment for the 2025/26 year of assessment, subject to a ceiling of HK$3,000. This tax reduction will be automatically reflected and deducted in the Notice of Assessment you receive. Taxpayers simply need to complete their tax returns as usual without making any separate applications.

How Is Salaries Tax Calculated? 2026 Latest Allowances at a Glance

In Hong Kong, salaries tax is calculated using either progressive rates or a standard rate. The IRD will automatically compute your tax liability using both methods and charge the lower amount. As long as your income for the year of assessment exceeds the basic allowance (HK$132,000), you will be liable to pay salaries tax.

Here are the common tax allowances for the 2025/26 year of assessment:

Allowance Item	Amount (HK$)
Basic allowance	$132,000
Married person’s allowance	$264,000
Child allowance (1st to 9th child, each)	$130,000
Additional child allowance for newborns (in the year of birth)	$260,000 (i.e. an extra $130,000)
Dependent parent/grandparent allowance (aged 60 or above, residing together)	$100,000
Dependent parent/grandparent allowance (aged 60 or above, not residing together)	$50,000
Single parent allowance	$132,000

Tax-saving Tips for Employees: Common Deductions and Limits

Beyond the basic allowances, leveraging various tax deduction items can significantly reduce your final tax bill. Common deductions include Tax Deductible Voluntary Contributions (TVC), Qualifying Deferred Annuity Policies (QDAP), the Voluntary Health Insurance Scheme (VHIS), and domestic rental expenses. Taxpayers must proactively claim these items on their tax returns to enjoy the deductions.

Tax Deductible Voluntary Contributions (TVC) & Qualifying Deferred Annuity Policies (QDAP): The maximum aggregate deduction limit for these two items is HK$60,000.
Voluntary Health Insurance Scheme (VHIS): When you purchase a certified VHIS plan for yourself or specified relatives, the maximum deduction limit is HK$8,000 per insured person per year, with no cap on the number of insured relatives.
Domestic Rental Expenses: Taxpayers liable to salaries tax who do not own any domestic properties in Hong Kong can claim a maximum deduction of HK$100,000 per year for rent paid.
Home Loan Interest: The maximum deduction limit is HK$100,000 per year, and this can be claimed for up to 20 years of assessment.
Approved Charitable Donations: The total donation amount must be HK$100 or above, and the maximum deduction is capped at 35% of the assessable income.

Online Filing Guide: 4 Steps to Use eTax

Using the IRD’s “eTax” online service to file your tax return is fast, convenient, and environmentally friendly. The system will automatically estimate your tax payable, and you will automatically enjoy a one-month filing extension. Beginners can complete the process in just 4 simple steps:

Prepare login credentials: You can log in directly using the “iAM Smart+” app, or create an eTax account using your Taxpayer Identification Number (TIN) and a password.
Access the eTax portal: Go to the IRD’s eTax webpage, select “Tax Return,” and click on “Completion and Submission of Tax Return.”
Verify and fill in details: The system will pre-load certain income information submitted by your employer. You need to carefully verify this data, declare any other sources of income, and claim your allowances and deductions (such as domestic rent or VHIS premiums).
Digital signature and submission: Once you have confirmed that all information is correct, use “iAM Smart” or your eTax password to digitally sign and submit the return. It is highly recommended to save or print the confirmation receipt for your records.

Tax Filing for Married Couples: Joint or Separate Assessment?

Married persons can choose between separate assessment or joint assessment. Generally, if one spouse’s income is lower than the basic allowance, opting for joint assessment is more beneficial, as it allows you to fully utilize both spouses’ allowances.

You do not need to manually calculate which method saves more tax. Simply select “Agree” on your tax return for the IRD to consider joint assessment. The IRD will automatically calculate the tax liabilities under both methods. If separate assessment results in lower tax, they will issue separate notices; if joint assessment is more favorable, they will issue a joint assessment notice, ensuring you pay the lowest possible tax.

What to Do After Receiving the Notice of Assessment? 9 Tax Payment Methods and Deadlines

After you file your tax return, the IRD typically starts issuing the “Notice of Assessment” around October of the same year. This notice details your tax payable and the payment deadlines. Tax is usually paid in two installments (typically in January and April of the following year) and will include the provisional tax for the next year of assessment.

Once you receive the notice, you can settle your tax bill using the following 9 methods. Many banks offer tax loans or credit card rebates during the tax season, so you can keep an eye out if you need better cash flow flexibility:

FPS (Faster Payment System): Scan the QR code on your tax bill to pay instantly.
PPS: Call 18031 or pay via the PPS website or mobile app (IRD merchant code: 10).
Online Banking: Use the “Bill Payment” function on your personal e-banking platform.
Credit Card: Some banks support tax payments via credit card, allowing you to earn cash rebates or reward points.
ATM: Pay at any ATM carrying the “Bill Payment Service” logo.
Convenience Stores: Bring your tax demand note with the printed barcode to 7-Eleven, OK Convenience Store, VanGO, or U Select to pay in cash (up to a maximum of HK$5,000 per transaction).
Post Office: Visit any post office to pay by cash, cheque, or EPS.
By Post: Send a crossed cheque to the IRD, made payable to “The Government of the Hong Kong Special Administrative Region.”
e-Cheque: Pay via the “Pay e-Cheque” portal.

Common Tax Filing Mistakes and Remedies: What Are the Penalties for Late Submission?

The most common mistakes during tax filing include omitting bonus or freelance income, claiming incorrect allowances, and submitting the tax return late. If you realize you have provided incorrect information, you should submit a written revision to the IRD as soon as possible.

Omitting income: In addition to your basic salary, bonuses, double pay, commissions, and part-time/freelance income must all be reported. Omitting income can be treated as tax evasion.
Late submission of tax return: Failing to submit your tax return on time without a reasonable excuse can result in a maximum fine of HK$10,000 and an additional penalty of 3 times the amount of tax undercharged.
Late tax payment: If you fail to pay your tax by the deadline, the IRD will impose a 5% surcharge; if the default lasts for over 6 months, an additional 10% surcharge will be levied.
Remedies: If you discover errors or omissions in a submitted tax return, you can fill out form IR1121 or apply in writing to the IRD for a correction (under Section 70A of the Inland Revenue Ordinance).

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Frequently Asked Questions

When will I receive my tax return?

The Inland Revenue Department typically issues individual tax returns on the first working day of May every year (for the 2025/26 year of assessment, this is May 4, 2026). If you have an eTax account, the system will also send an electronic notification simultaneously.

What should I do if I haven’t received my tax return?

If you have been required to file a tax return in previous years but have not received one by mid-May, you should call the Inland Revenue Department to inquire or visit the Revenue Tower in person to request a duplicate copy. You can also log into your eTax account to check if an electronic tax return has been issued to you.

What are the penalties for submitting a tax return late?

If you submit your tax return late without a reasonable excuse, the Inland Revenue Department may take prosecution action. Offenders can face a maximum fine of HK$10,000 and an additional penalty equal to 3 times the amount of the tax undercharged.

Do I need to report bonuses, double pay, and part-time income on my tax return?

Yes. All income derived from an office or employment—including your base salary, bonuses, double pay, commissions, allowances, as well as part-time or freelance earnings—must be truthfully declared on your tax return.

How can I apply to pay my taxes in installments?

If you are unable to pay your tax on time due to financial difficulties, you can apply to the Inland Revenue Department for installment payments before the tax payment deadline. When applying, you must complete the relevant form and provide proof of your financial situation. Please note that even if your installment application is approved, the IRD will still impose a surcharge on the outstanding tax balance.

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Bowtie 團隊