Property tax calculator for rental income

If you let out property in Hong Kong, you pay property tax on the rent. Start with the rent you received for the year and subtract rates you paid and rent you could not collect.

You then get a statutory allowance of 20 % for repairs and outgoings, whatever you actually spent. What is left is the net assessable value. Property tax is 15 % of it, so in effect 12 % of the rent after rates.

Mortgage interest does not lower property tax. If you have a mortgage, or low other income, electing personal assessment can reduce your tax. The IRD collects property tax in two instalments with provisional tax for the next year.

• You own the property as an individual. Joint owners enter their share and the full rent.
• Rates count only if you agreed to pay them and paid them. Government rent and management fees are covered by the 20 % statutory allowance.
• Mortgage interest does not lower property tax. You can claim it only by electing personal assessment, which is not calculated here.
• The one-off tax reduction of 2025/26 does not apply to property tax.
• The rent is for the year of assessment, 1 April to 31 March, including any premium and service charges paid to you.

How much property tax do I pay on $240,000 of rent?

After the 20 % allowance of $48,000, the net assessable value is $192,000. Property tax at 15 % is $28,800. It is the same rule as in the IRD example, where $120,000 of rent gives $14,400 of tax.

Can I deduct mortgage interest?

Not from property tax. Under personal assessment you can deduct mortgage interest on the let property, up to the net assessable value of that property.

Does the one-off tax reduction apply to property tax?

No. The 2025/26 reduction of up to $3,000 covers salaries tax, profits tax and tax under personal assessment, but not property tax. You can still benefit through personal assessment.

Which return do I report rent on?

If you own the property alone, you report the rent in your individual tax return (BIR60). Joint owners and co-owners receive a separate property tax return (BIR57).

• www.ird.gov.hk/eng/faq/pty.htm
• www.ird.gov.hk/eng/tax/ind_ppt.htm
• www.ird.gov.hk/eng/tax/budget.htm