Before going to the tax rates of salaries tax and personal assessment, you may want to know how to calculate the amount of tax you should pay. This article will also tell you the standard rate and annual income levels at which salaries tax payers enter the standard rate zone.
How to Calculate the Amount of Tax that You Should Pay?
Your net chargeable income, ie assessable income after deductions and allowances, is charged at progressive rates. But if what you need to pay on the basis of your net chargeable income exceeds the tax charged at standard rate on your net total income, ie assessable income after deductions but before allowances, then you have to pay the lower amount of tax.
Year of Assessment 2008/09 to 2012/13 (see note)
| Net chargeable Income | Rate | Tax | |
|---|---|---|---|
| $ | $ | ||
| On the First | 40,000 | 2% | 800 |
| On the Next | 40,000 | 7% | 2,800 |
| 80,000 | 3,600 | ||
| On the Next | 40,000 | 12% | 4,800 |
| 120,000 | 8,400 | ||
| Remainder | 17% |
Note :
For 2011/12, a 75% waiver of the final tax payable under salaries tax and tax under personal assessment, subject to a ceiling of $12,000 per case. (Legislative amendments are required for implementing the proposed measures)
For 2010/11, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $6,000 per case.
For 2009/10, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $6,000 per case.
For 2008/09, 100% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $8,000 per case.
Year of Assessment 2007/08
| Net Chargeable Income | Rate | Tax | |
|---|---|---|---|
| $ | $ | ||
| On the First | 35,000 | 2% | 700 |
| On the Next | 35,000 | 7% | 2,450 |
| 70,000 | 3,150 | ||
| On the Next | 35,000 | 12% | 4,200 |
| 105,000 | 7,350 | ||
| Remainder | 17% |
For 2007/08, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $25,000 per case.
Year of Assessment 2006/07
| Net Chargeable Income | Rate | Tax | |
|---|---|---|---|
| $ | $ | ||
| On the First | 30,000 | 2% | 600 |
| On the Next | 30,000 | 7% | 2,100 |
| 60,000 | 2,700 | ||
| On the Next | 30,000 | 13% | 3,900 |
| 90,000 | 6,600 | ||
| Remainder | 19% |
For 2006/07, 50% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $15,000 per case.
Standard Rate
| Year of Assessment | Tax Rate |
|---|---|
| 2008/09 onwards (Note) | 15% |
| 2006/07 to 2007/08 (Note) | 16% |
Note
(1) For 2011/12, a 75% waiver of the final tax payable under salaries tax and tax under personal assessment, subject to a ceiling of $12,000 per case. (Legislative amendments are required for implementing the proposed measures)
(2) For 2010/11, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $6,000 per case.
(3) For 2009/10, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $6,000 per case.
(4) For 2008/09, 100% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $8,000 per case.
(5) For 2007/08, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $25,000 per case.
(6) For 2006/07, 50% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $15,000 per case.
Annual Income Levels at Which Salaries Tax Payers Enter the Standard Rate Zone
| Year of Assessment 2006/07 $ | Year of Assessment 2007/08 $ | Year of Assessment 2008/09 | Year of | Year of |
Single | 983,334 | 2,750,000 | 1,518,000 | 1,518,000 | 1,620,000 |
Married | 1,616,667 | 4,450,000 | 2,436,000 | 2,436,000 | 2,640,000 |
Married + 1 child# | 1,870,000 | 5,300,000 | 2,861,000 | 2,946,000 | 3,175,500 |
Married + 2 children# | 2,123,334 | 6,150,000 | 3,286,000 | 3,456,000 | 3,711,000 |
Married + 3 children# | 2,376,667 | 7,000,000 | 3,711,000 | 3,966,000 | 4,246,500 |
Including Two Dependent Parents or Grandparents Aged 60 or Above
| Year of Assessment 2006/07 $ | Year of Assessment 2007/08 $ | Year of Assessment 2008/09 to 2010/11 $ | Year of Assessment 2011/12 $ | Year of Assessment 2012/13* $ |
|---|---|---|---|---|---|
| Single | 1,363,334 | 3,770,000 | 2,028,000 | 2,130,000 | 2,266,000 |
| Married | 1,996,667 | 5,470,000 | 2,946,000 | 3,048,000 | 3,286,000 |
| Married + 1 child# | 2,250,000 | 6,320,000 | 3,371,000 | 3,558,000 | 3,821,500 |
| Married + 2 children# | 2,503,334 | 7,170,000 | 3,796,000 | 4,068,000 | 4,357,000 |
| Married + 3 children# | 2,756,667 | 8,020,000 | 4,221,000 | 4,578,000 | 4,892,500 |
Including Two Dependent Parents or Grandparents Both Aged 60 or Above and Living With You
| Year of | Year of | Year of Assessment 2008/09 | Year of | Year of |
|---|---|---|---|---|---|
| Single | 1,743,334 | 4,790,000 | 2,538,000 | 2,742,000 | 2,912,000 |
| Married | 2,376,667 | 6,490,000 | 3,456,000 | 3,660,000 | 3,932,000 |
| Married + 1 child# | 2,630,000 | 7,340,000 | 3,881,000 | 4,170,000 | 4,467,500 |
| Married + 2 children# | 2,883,334 | 8,190,000 | 4,306,000 | 4,680,000 | 5,003,000 |
| Married + 3 children# | 3,136,667 | 9,040,000 | 4,731,000 | 5,190,000 | 5,538,500 |
Including One Dependent Parent or Grandparent Aged 60 or Above and Living With You and One Disabled Dependent Brother or Sister
| Year of | Year of | Year of Assessment 2008/09 | Year of | Year of |
| Single | 1,933,334 | 5,300,000 | 2,793,000 | 2,895,000 | 3,107,500 |
| Married | 2,566,667 | 7,000,000 | 3,711,000 | 3,813,000 | 4,127,500 |
| Married + 1 child# | 2,820,000 | 7,850,000 | 4,136,000 | 4,323,000 | 4,663,000 |
| Married + 2 children# | 3,073,334 | 8,700,000 | 4,561,000 | 4,833,000 | 5,198,500 |
| Married + 3 children# | 3,326,667 | 9,550,000 | 4,986,000 | 5,343,000 | 5,734,000 |
Being a Single Parent with
Year of | Year of | Year of Assessment 2008/09 | Year of | Year of | |
| 1 child# | 1,870,000 | 5,300,000 | 2,861,000 | 2,946,000 | 3,175,500 |
| 2 children# | 2,123,334 | 6,150,000 | 3,286,000 | 3,456,000 | 3,711,000 |
| 3 children# | 2,376,667 | 7,000,000 | 3,711,000 | 3,966,000 | 4,246,500 |
Note: The effects of the various deductions are not included in the above tables.
* The tax measures proposed by the Financial Secretary in the 2012-13 Budget include (legislative amendments are required for implementing the proposed measures):
- increase in Basic Allowance, Single Parent Allowance, Married Person’s Allowance, Child Allowance, additional one-off Child Allowance in the year of birth, Dependent Brother or Dependent Sister Allowance, Dependent Parent and Dependent Grandparent Allowance and its additional allowance, as well as Disabled Dependent Allowance;
- increase in the deduction ceiling of Elderly Residential Care Expenses;
- increase in the maximum tax deduction for contributions made to a Mandatory Provident Fund Scheme or Recognised Occupational Retirement Scheme;
- extend the limit for Home Loan Interest deduction from 10 years to 15 years, whether continuous or not, subject to a maximum deduction of $100,000 for each year of assessment.
# Not include new born child allowance
Last revision date: May 2012
