Inland Revenue (Amendment) (Tax Concessions, Concessionary Deductions and Allowances) Bill 2026 to be gazetted
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These measures include the following adjustments to salaries tax and tax under personal assessment, with effect from the year of assessment 2026/27:
(a) increasing the basic allowance and single parent allowance from $132,000 to $145,000 and the married person's allowance from $264,000 to $290,000;
(b) increasing dependent parent/grandparent allowances and the additional dependent parent/grandparent allowances for each eligible parent/grandparent from $50,000 to $55,000 (for dependents aged 60 or above, or disabled) and from $25,000 to $27,500 (for dependents aged 55 or above but below 60);
(c) raising the deduction ceiling for elderly residential care expenses for each eligible parent/grandparent from $100,000 to $110,000;
(d) extending the claim period for additional child allowance for newborns from one year to two years; and
(e) increasing the child allowance and additional child allowance for newborns from $130,000 to $140,000.
Measures in (a) will benefit about 2.09 million taxpayers and reduce tax revenue by $3.56 billion annually. Measures in (b) and (c) will benefit about 830 000 taxpayers and reduce tax revenue by $970 million annually. Measures in (d) and (e) will benefit about 360 000 taxpayers and reduce tax revenue by about $980 million annually. Measure (d) was proposed in the 2025 Policy Address while others are in the 2026-27 Budget.
The Bill will also implement the one-off reduction of salaries tax, tax under personal assessment and profits tax for the year of assessment 2025/26 by 100 per cent, subject to a ceiling of $3,000 per case, as proposed in the 2026-27 Budget. The reduction will be reflected in taxpayers' final tax payable for the year of assessment 2025/26. The proposal will benefit about 2.12 million taxpayers of salaries tax and tax under personal assessment, and about 170 800 tax-paying corporations and unincorporated businesses. The revenue forgone is about $5.78 billion.
The Bill will be introduced into the Legislative Council for first reading and the commencement of the second reading debate on March 18.
Ends/Wednesday, March 4, 2026
Issued at HKT 18:33
Issued at HKT 18:33
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