On February 25, 2026, the Government of the Hong Kong Special Administrative Region released the 2026/27 Budget.
Against the backdrop of global economic uncertainty, Hong Kong has presented a fiscal blueprint that stabilizes confidence, growth, and expectations. Hong Kong's overall economy grew by 3.5% in 2025, marking the third consecutive year of growth. The government forecasts an economic growth of 2.5% to 3.5% for 2026, with a continuing positive development momentum.
For Hong Kong citizens and new talent arriving in Hong Kong, the most highly anticipated highlights are undoubtedly——tangible tax cuts, optimization of the tax structure, and livelihood benefits.
The salaries tax reduction has been doubled. Salaries tax and personal assessment for the 2025/26 year of assessment will be reduced by 100%, with the ceiling raised to HK$3,000, benefiting approximately 2.12 million taxpayers in Hong Kong.
At the same time, the Budget announced that effective from the 2026/27 year of assessment, the basic allowance, single parent allowance, married person's allowance, child allowance, and dependent parent/grandparent allowance will be increased, and the deduction ceiling for residential care expenses for the elderly will be raised! This will further reduce the tax burden on taxpayers.
• Basic Allowance: 132,000 → 145,000
• Single Parent Allowance: 132,000 → 145,000
• Married Person's Allowance: 264,000 → 290,000
• Child Allowance: 130,000 → 140,000
• Dependent Parent/Grandparent Allowance (aged 60 or above): 50,000 → 55,000
• Dependent Parent/Grandparent Allowance (aged 55-59): 25,000 → 27,500
• Deduction Ceiling for Elderly Residential Care Expenses: 100,000 → 110,000
Regarding property rates, a concession for rates for the first two quarters of 2026/27 will be provided for both residential and non-residential properties, with a ceiling of $500 per quarter for each rateable property, benefiting approximately 3.15 million residential properties and 440,000 non-residential properties respectively.
Enterprises can also enjoy tax reduction benefits, with profits tax for the 2025/26 year of assessment reduced by 100%, with a ceiling of $3,000.
For small and medium-sized enterprises (SMEs), the government has introduced a series of support policies.
The BUD Fund will be topped up with $200 million, and the funding ceiling for the "Easy BUD" will be increased from $100,000 to $150,000 per application, with targeted funding provided for enterprises to apply AI.
The application period for the 80% guarantee product under the SME Financing Guarantee Scheme will be extended to the end of March 2028, and the "principal moratorium" arrangement will be extended to mid-November 2026, with the total loan guarantee commitment increased by $20 billion.
At the same time, the government will establish a cross-disciplinary professional service platform to pool legal, accounting, financial, and other professional services to support mainland enterprises in going global.
When a city simultaneously possesses low tax rates, a simple tax system, the status of an international financial center, and continuously strengthens its support for innovation, technology, and capital, it naturally becomes a preferred choice for global families and talent. Therefore, it is no coincidence that the popularity of "Hong Kong Immigration" and "Hong Kong Investment Immigration" is rising. For many families, Hong Kong is not just a place of residence, but also a tax optimization platform, a springboard for children's education, and an Asian asset allocation hub.
Currently, two popular ways to immigrate to Hong Kong include: the New Capital Investment Entrant Scheme and the Top Talent Pass Scheme. Planning ahead during a period of clear policy windows, economic stabilization, and tax system optimization often provides greater space and certainty.
WorldWay Group, one of Asia's Top 500 Brands, has been focusing on immigration for over 20 years. As one of the earliest companies to launch Hong Kong immigration services, it has professional offices in Hong Kong, Macau, and mainland China, with numerous successful cases and extensive experience.
For inquiries, please contact Mainland China: 400-138-2929, Hong Kong Customer Service Center: (852)2802 8798