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 2013/14 (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 2012/13, a one-off reduction of 75% of the final tax payable under profits tax, salaries tax and tax under personal assessment, subject to a ceiling of $10,000 per case, was proposed in the 2013-14 Budget. Legislative amendments are required for implementing the proposed measures.
For 2011/12, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $12,000 per case.
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.
Standard Rate
| Year of Assessment | Tax Rate |
|---|---|
| 2008/09 onwards (Note) | 15% |
| 2007/08 (Note) | 16% |
Note
(1) For 2012/13, a one-off reduction of 75% of the final tax payable under profits tax, salaries tax and tax under personal assessment, subject to a ceiling of $10,000 per case, was proposed in the 2013-14 Budget. Legislative amendments are required for implementing the proposed measures.
(2) For 2011/12, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $12,000 per case.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
Annual Income Levels at Which Salaries Tax Payers Enter the Standard Rate Zone
| Year of Assessment 2007/08 $ | Year of Assessment 2008/09 to 2010/11 $ |
Year of |
Year of | Year of Assessment 2013/14* $ |
|
| Single | 2,750,000 | 1,518,000 | 1,518,000 | 1,620,000 | 1,620,000 |
| Married | 4,450,000 | 2,436,000 | 2,436,000 | 2,640,000 | 2,640,000 |
| Married + 1 child# | 5,300,000 | 2,861,000 | 2,946,000 | 3,175,500 | 3,235,000 |
| Married + 2 children# | 6,150,000 | 3,286,000 | 3,456,000 | 3,711,000 | 3,830,000 |
| Married + 3 children# | 7,000,000 | 3,711,000 | 3,966,000 | 4,246,500 | 4,425,000 |
Including Two Dependent Parents or Grandparents Aged 60 or Above
| Year of Assessment 2007/08 $ | Year of Assessment 2008/09 to 2010/11 $ | Year of Assessment 2011/12 $ | Year of Assessment 2012/13 $ | Year of Assessment 2013/14* $ |
|
| Single | 3,770,000 | 2,028,000 | 2,130,000 | 2,266,000 | 2,266,000 |
| Married | 5,470,000 | 2,946,000 | 3,048,000 | 3,286,000 | 3,286,000 |
| Married + 1 child# | 6,320,000 | 3,371,000 | 3,558,000 | 3,821,500 | 3,881,000 |
| Married + 2 children# | 7,170,000 | 3,796,000 | 4,068,000 | 4,357,000 | 4,476,000 |
| Married + 3 children# | 8,020,000 | 4,221,000 | 4,578,000 | 4,892,500 | 5,071,000 |
Including Two Dependent Parents or Grandparents Both Aged 60 or Above and Living With You
| Year of Assessment 2007/08 $ | Year of Assessment 2008/09 to 2010/11 $ | Year of Assessment 2011/12 $ |
Year of | Year of Assessment 2013/14* $ |
|
| Single | 4,790,000 | 2,538,000 | 2,742,000 | 2,912,000 | 2,912,000 |
| Married | 6,490,000 | 3,456,000 | 3,660,000 | 3,932,000 | 3,932,000 |
| Married + 1 child# | 7,340,000 | 3,881,000 | 4,170,000 | 4,467,500 | 4,527,000 |
| Married + 2 children# | 8,190,000 | 4,306,000 | 4,680,000 | 5,003,000 | 5,122,000 |
| Married + 3 children# | 9,040,000 | 4,731,000 | 5,190,000 | 5,538,500 | 5,717,000 |
Including One Dependent Parent or Grandparent Aged 60 or Above and Living With You and One Disabled Dependent Brother or Sister
| Year of Assessment 2007/08 $ | Year of Assessment 2008/09 to 2010/11 $ | Year of Assessment 2011/12 $ |
Year of | Year of Assessment 2013/14* $ |
|
| Single | 5,300,000 | 2,793,000 | 2,895,000 | 3,107,500 | 3,107,500 |
| Married | 7,000,000 | 3,711,000 | 3,813,000 | 4,127,500 | 4,127,500 |
| Married + 1 child# | 7,850,000 | 4,136,000 | 4,323,000 | 4,663,000 | 4,722,500 |
| Married + 2 children# | 8,700,000 | 4,561,000 | 4,833,000 | 5,198,500 | 5,317,500 |
| Married + 3 children# | 9,550,000 | 4,986,000 | 5,343,000 | 5,734,000 | 5,912,500 |
Being a Single Parent with
| Year of Assessment 2007/08 $ | Year of Assessment 2008/09 to 2010/11 $ | Year of Assessment 2011/12 $ |
Year of | Year of Assessment 2013/14* $ |
|
| 1 child# | 5,300,000 | 2,861,000 | 2,946,000 | 3,175,500 | 3,235,000 |
| 2 children# | 6,150,000 | 3,286,000 | 3,456,000 | 3,711,000 | 3,830,000 |
| 3 children# | 7,000,000 | 3,711,000 | 3,966,000 | 4,246,500 | 4,425,000 |
Note: The effects of the various deductions are not included in the above tables.
* The tax measures proposed by the Financial Secretary in the 2013-14 Budget include (legislative amendments are required for implementing the proposed measures):
- increase in Child Allowance and additional one-off Child Allowance in the year of birth from $63,000 to $70,000;
- increase in the maximum tax deduction for expenses of self-education from $60,000 to $80,000.
# Not include new born child allowance
Last revision date: May 2013
