You can learn more in this article about how to compute property tax and provisional property tax and apply for paying less provisional tax.

Property tax is computed at the standard rate on the net assessable value of the property for the relevant year of assessment. A year of assessment runs from 1 April to 31 March of the following year.

The net assessable value is computed as follows: 

The following links provide you with more information on computing property tax.

• Tax rates of property tax
  http://www.gov.hk/en/residents/taxes/taxfiling/taxrates/propertyrates.htm
• More information about rental income
  http://www.gov.hk/en/residents/taxes/property/propertyincome.htm
• More information about irrecoverable rent
  http://www.gov.hk/en/residents/taxes/property/deduction/irrecoverable.htm
• More information about deductions against rental income
  http://www.gov.hk/en/residents/taxes/property/deduction/index.htm
• More information about statutory allowance for repairs & outgoings
  http://www.gov.hk/en/residents/taxes/property/deduction/statutory.htm

The following examples show how property tax are computed:

Example 1: How to compute the net assessable value (NAV) and the amount of tax

For the year of assessment 2006/07, rent was $10,000 per month and the tenant paid rates.

Assessment for 2006/07 (Final) and 2007/08 (Provisional)

• Due date for payment:
  You will find a due date on the notice of assessment and you must make payment on or before the due date, unless on objection against the assessment or on the lodgment of a holdover claim, you have been notified by the Inland Revenue Department (IRD) that you may pay a lesser amount of tax by the due date.
  
  
• Provisional property tax will be payable in two instalments:
  On the notice of assessment, two due dates for tax payment can be found. Normally the first payment date will fall in November of the same year of the issue date and the second payment date will fall in April of the next year. This is because insofar as provisional tax is concerned, you will have received 7 months’ rent (i.e., rent for April to October) by the end of October and the full year’s rent by the end of March next year.

Example 2: Commence letting during the year

If the property was let on 1July 2006 for $30,000 per month and rates paid by the owner(s) were $12,000.

Property Tax for 2006/07 (Final)

• Note: As the letting was commenced during the year, provisional property tax for 2007/08 will be based on the NAV for 2006/07, but grossed up to 12 months, as follows:

  Estimated NAV for 12 months $(206,400 x 12/9)	$275,200
  Provisional property tax for 2007/08 @16%	$  44,032

• Demand note for property tax
  The property owner(s) will receive one single notice of assessment with the following details:

  	$
  Property tax for 2006/07	33,024
  Provisional property tax for 2007/08	44,032
  Total amount of tax payable	77,056

• Calculation of the tax payable on the two payment dates:
  First Instalment
  

  2006/07 property tax + 7/12 of 2007/08 provisional tax
  $(33,024 + 44,032 x 7/12)	$58,709

  
  Second Instalment
  

  Balance of 2007/08 provisional tax
  $(44,032 x 5/12)	18,347
  Total tax payable	$77,056

If one of the following conditions is applicable, you have to apply in writing not later than 28 days before the due date for payment of tax, or 14 days after the date of the notice for payment of provisional property tax, whichever is later.

• The assessable value for the provisional tax year was less than or likely to be less than
  90% of the assessable value for the preceding year 
  or
  90% of the estimated assessable value in respect of which you are liable to pay provisional tax.
  
  In Example 1 above, the AV for 2006/07 is $120,000. If you wish to apply for holdover of part of the provisional tax, the estimated AV for 2007/08 must be less than $108,000.
  
  
• Your objection against the amount of NAV for the year of assessment 2006/07 is still in progress and the whole or part of the 2006/07 property tax has been stoodover.
• You have sold the property concerned and your rental income is reduced during the provisional tax year.
• The amount of tax will be reduced because you have made an election for personal assessment.

• Form I.R. 1121 for holdover of provisional tax
  http://www.ird.gov.hk/eng/pdf/ir1121e.pdf
• More on application for holding over of provisional tax
  http://www.gov.hk/en/residents/taxes/taxfiling/object/provisional.htm