06/03/2026
On 25 February 2026, Chan Mo-po, the Financial Secretary of the Hong Kong Special Administrative Region, delivered the 2026-27 Budget.
With the theme of "Innovation and Finance, Diversified Development, and Caring for the People", the Budget for the coming year mainly focuses on the integration of "AI+" and industries and the key infrastructure development in the Northern Metropolis. At the same time, within the framework of strictly controlling the growth of government operating expenses, a series of precise and practical measures to benefit the people and support enterprises are carried out to stabilize the budding economic recovery. The main measures are as follows:
Relieving People's Hardship
Provide rates concession for domestic properties for the first two quarter of 2026/27, subject to a ceiling of HK$500 per quarter for each rateable property
Reduce salaries tax and tax under personal assessment for the year of assessment 2025/26 by 100%, subject to a ceiling of HK$3,000 (you're welcomed to use Conpak's HK Salaries Tax Calculator to quickly calculate salaries tax and property tax)
Provide extra 1 month allowance to eligible recipients of standard CSSA payments, Old Age Allowance, Old Age Living Allowance, Disability Allowance and Working Family Allowance
Raise the basic allowance and single parent allowance to HK$145,000 respectively, the married person's allowance to HK$290,000, and the child allowance to HK$140,000 for each child; and
Raise the dependant parent / grandparent allowances for aged 60 or above and aged 55 to 59 to HK$55,000 and HK$27,500 respectively, and the deduction ceiling for elderly residential care expenses to HK$110,000
Supporting Enterprises
Provide rates concession for non-domestic properties for the first two quarter of 2026/27, subject to a ceiling of HK$500 per quarter for each rateable property
Reduce profits tax for the year of assessment 2025/26 by 100%, subject to a ceiling of HK$3,000
Inject HK$200 million into the BUD Fund, raise funding ceiling for each Easy BUD application to HK$150,000, and provide specialized support for AI applications;
Continue to provide credit guarantees through the SME Financing Guarantee Scheme: the application period for 80% of the guarantee products has been extended until the end of March 2028, while the period for the principal moratorium arrangement mid-November this year, with a further increase of the total guaranteed commitment by HK$20 billion
Establish a cross-sector professional service platform, integrating law, accounting, finance, testing and certification, marketing promotion and other professional services in Hong Kong, to attract mainland enterprises to expand their overseas markets with Hong Kong as a midway point
Launch preferential policy packages to promote industries and investment, offering half-tax or a 5% preferential tax rate, to attract high-value-added enterprises to settle; and
Invest HK$10 billion each in Hetao Co-operation Zone Hong Kong Park, San Tin Technopole, and Hung Shui Kiu Industry Park to promote construction and attract investment, and simultaneously support the commissioning within this year of the third-generation semiconductor chip pilot line and the new industrialization, facilitating the Northern Metropolis to become Hong Kong's future economic core
Luxury Housing Tax Increasing and Supporting Work Following the Tai Po Fire
For residential properties valued over HK$100 million, the ad valorem stamp duty rate has been raised from 4.25% to 6.5%. At the same time, in response to the supporting work following the Tai Po Fire, the government has set aside HK$4 billion to support long-term housing arrangements.
Summary
In summary, the Budget is a balanced one for Hong Kong's economic recovery. It responds to the public's expectations for hardship relief, alleviates the financial pressure on SMEs, supports mainland enterprises in going global, promotes innovation and finance, continues to strengthen investment in education, culture and tourism, sports and environmental protection, and consolidates Hong Kong's position as an international financial center, laying the foundation for long-term, high-quality and sustainable development.
