How to Pay Tax in Hong Kong 2027: FPS, Instalments & Due Dates

You pay Hong Kong salaries tax once a year, in two instalments set by your demand note: the first, usually due in January, covers the previous year's final tax plus 75% of the provisional tax for the current year, and the second, usually in April, covers the remaining 25%. You can pay by FPS (scanning the QR code on the bill), internet banking, PPS, bank ATM, post, in person, or in cash at 7-Eleven, Circle K or U select up to HK$5,000 per transaction. Pay late and the IRD can add a 5% surcharge, plus a further 10% if the tax is still unpaid six months later.

This is the practical guide to actually paying. For tax rates, allowances and how the bill is worked out, see our Hong Kong salaries tax guide.

How Does Paying Tax Work in Hong Kong?

Hong Kong doesn't take tax from your pay each month. There's no PAYE or withholding for most employees. Instead, you file a tax return after the tax year ends (the year runs from 1 April to 31 March), the Inland Revenue Department (IRD) assesses you, and you pay what's on the demand note.

That means you need to save for it yourself. Most people get caught out in their first or second year, when the bill arrives with a year's tax plus an estimate for the next year on top.

If you're new to Hong Kong and still lining up work, you can browse English-speaking roles on ExpatJobBoard.com. We list thousands of jobs in Hong Kong that don't require Cantonese or Mandarin.

When Do You Pay Salaries Tax?

Here's the typical cycle for an employee, using the 2026/27 calendar.

Source: Inland Revenue Department, A Guide to Salaries Tax and filing guidance for the BIR60.

The exact due dates are printed on your demand note. Use those, not the months above, because the IRD sets them individually.

What Is Provisional Tax and Why Is the First Bill So Big?

Provisional tax is the IRD's estimate of the coming year's tax, usually based on the previous year's income. According to the IRD, it's split so you pay 75% in January, after nine months of the year have passed, and 25% in April, after the full year.

In your first full year, nobody has charged you provisional tax yet, so the first demand note contains a full year of final tax plus most of the next year's provisional tax. After that, the provisional tax you've already paid is credited against your final tax, and the bill settles into a steadier pattern.

Our salaries tax guide explains why provisional tax catches people out. This guide focuses on how and when to pay it.

A Worked Example From the IRD

The IRD's own salaries tax guide (May 2026 edition) uses a single taxpayer earning HK$40,000 a month with HK$1,500 a month of MPF contributions:

Source: Inland Revenue Department, A Guide to Salaries Tax (1), May 2026.

That person saw almost no tax for 2025/26 thanks to the one-off reduction, then a HK$27,857 bill in January. Budget for the second year, not the first.

How Can You Pay Your Tax Bill?

According to the IRD and the Treasury, you can pay a demand note in any of these ways:

Source: Inland Revenue Department electronic payment FAQs; Treasury convenience store payment page.

Whichever method you use, the IRD says a payment made by midnight on the due date counts as on time. Keep the transaction reference until the next demand note shows the payment.

The full list, including payment from overseas, is on the IRD's payment methods page.

Can You Split the Payment Across Several Days?

Yes. The IRD lets you pay a bill in parts on different days, which helps if your bank's daily transfer limit is lower than the bill. But the whole amount still has to be paid by the due date.

What If You Can't Pay on Time?

Apply before the due date. The IRD accepts applications to pay by instalments from people in financial difficulty, using form IR1360 for individuals and sole proprietors. You'll need a payment proposal, your last three months of bank statements and details of your income, spending and debts. The IRD aims to reply within 21 working days.

If you simply don't pay:

• A surcharge of up to 5% can be added to the unpaid tax after the due date.
• A further surcharge of up to 10% can be added if the total, including the 5%, is still unpaid six months after the due date.
• Recovery action follows, which can include stopping you leaving Hong Kong.

Source: Inland Revenue Department, collection and surcharge guidance.

Can You Reduce Provisional Tax?

Yes, if your income is going to drop. You can apply to hold over provisional tax if your expected net chargeable income for the year will be less than 90% of the previous year's, according to the IRD. Common reasons include a pay cut, unpaid leave, a one-off bonus last year, a new child, or new home loan interest.

The deadline is the later of 28 days before the instalment is due or 14 days after the demand note was issued. The IRD's own example: a demand note issued on 5 August 2026 with a first instalment due 4 January 2027 means applying by 7 December 2026. So for the January 2027 instalment, the window is now.

How to Save for Your Tax Bill: Tax Reserve Certificates

If you'd rather not be surprised in January, Tax Reserve Certificates (TRCs) let you save with the IRD. According to the IRD:

• You open a TRC account with form IR1306 and get a 13-digit account number.
• You buy certificates from HK$300, in multiples of HK$50, by monthly autopay, PPS, internet banking or eTAX.
• They pay a small interest rate (0.15% a year for TRCs bought from 8 April 2026), but only when redeemed to pay tax.
• They pay your bill automatically on the due date, oldest first, and you top up any shortfall.

The interest is negligible. The point is discipline: money set aside monthly is money you can't spend.

What Happens When You Leave Hong Kong?

Your employer must notify the IRD and hold back your final salary until you get a "letter of release" showing your tax is settled. Plan for this a month or two before you go. Our checklist for leaving Hong Kong walks through tax clearance step by step.

Self-Employed? It's the Same System

Profits tax for sole proprietors works on the same pattern of final tax plus provisional tax, paid in instalments. Our guide to profits tax for freelancers covers filing and rates.

FAQs: How to Pay Tax in Hong Kong

How do I pay my tax in Hong Kong?

Use the demand note from the IRD. You can pay by FPS (scan the QR code), internet banking, PPS, bank ATM, e-Cheque, post, in person, or in cash at 7-Eleven, Circle K or U select up to HK$5,000 per transaction.

When is Hong Kong salaries tax due?

Usually in two instalments: the first around January and the second around April. The exact dates are printed on your demand note.

Can I pay Hong Kong tax by credit card?

The IRD's list of payment methods doesn't include credit cards for tax. Use FPS, internet banking, PPS, ATM or the other listed channels.

Is tax deducted from my salary in Hong Kong?

No, not for most employees. You pay the IRD directly after you're assessed, so you need to set money aside yourself.

What is provisional tax in Hong Kong?

An estimate of the current year's tax based on the previous year's income. You pay 75% in the first instalment and 25% in the second, and it's credited against your final tax later.

What happens if I pay my tax late?

The IRD can add a 5% surcharge on unpaid tax, plus a further 10% if it's still unpaid six months after the due date.

Can I pay Hong Kong tax in instalments?

The bill already comes in two instalments. If you're in financial difficulty, you can apply before the due date to spread payments further, using form IR1360.

Can I reduce my provisional tax?

Yes, if your income for the year will be at least 10% lower. Apply by the later of 28 days before the due date or 14 days after the demand note was issued.

Does paying by midnight on the due date count?

Yes. The IRD treats tax paid by midnight on the due date as on time, regardless of the processing cut-off.

Do I still have to pay provisional tax after the 2025/26 tax reduction?

Yes. The one-off reduction applies to final tax only, so 2025/26 provisional tax still had to be paid on time. Any overpayment is credited against the next bill or refunded.

Key Takeaways

• Hong Kong doesn't deduct salaries tax from pay; you pay the IRD directly after assessment.
• Bills come in two instalments: final tax plus 75% of provisional tax (usually January), then 25% (usually April).
• Pay by FPS, internet banking, PPS, ATM, e-Cheque, post, in person, or cash at convenience stores up to HK$5,000.
• Paying by midnight on the due date counts as on time.
• Late payment can add 5%, then a further 10% after six months.
• You can hold over provisional tax if your income will drop below 90% of last year's.
• Tax Reserve Certificates let you save monthly for the bill, from HK$300.

Find a Job With Room in the Budget for Tax

Hong Kong's tax rates are low, but the bill still comes all at once. Browse thousands of English-speaking jobs on ExpatJobBoard.com, none of which require Cantonese or Mandarin.