Tax Rates of Salaries Tax & Personal Assessment

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, i.e. 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, i.e. assessable income after deductions but before allowances, then you have to pay the lower amount of tax.

Year of Assessment 2011/12 to 2016/17

 

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%  

Year of Assessment 2017/18* onwards#

 

Net chargeable Income

Rate

Tax

 

$

 

$

On the First 45,000 2% 900
On the Next 45,000 7% 3,150
  90,000   4,050
On the Next 45,000 12% 5,400
  135,000   9,450
Remainder   17%  

*      Legislative amendments are required for implementing the tax measures as proposed by the Financial Secretary in the 2017-18 Budget.

#     Until superseded

Standard Rate

Year of AssessmentTax Rate
2011/12 onward# 15%

#     Until superseded

Tax Reduction

Year of Assessment

% of Tax Reduction

Maximum Per Case ($)

Applicable Tax Types

2011/12 75% 12,000 salaries tax, profits tax and tax under personal assessment
2012/13 & 2013/14 75% 10,000 salaries tax, profits tax and tax under personal assessment
2014/15 75% 20,000 salaries tax, profits tax and tax under personal assessment
2015/16 75% 20,000 salaries tax, profits tax and tax under personal assessment
2016/17* 75% 20,000 salaries tax, profits tax and tax under personal assessment

* Legislative amendments are required for implementing the tax measures as proposed by the Financial Secretary in the 2017-18 Budget.

Annual Income Levels at Which Salaries Tax Payers Enter the Standard Rate Zone

 

Year of Assessment

2017/18*
$

2016/17
$

2015/16
$

2014/15
$

Single 1,797,000  1,722,000 1,620,000 1,620,000
Married 2,919,000  2,844,000 2,640,000 2,640,000
Married + 1 child^ 3,769,000  3,694,000 3,490,000 3,235,000
Married + 2 children^ 4,619,000  4,544,000 4,340,000 3,830,000
Married + 3 children^ 5,469,000  5,394,000 5,190,000 4,425,000

Including Two Dependent Parents or Grandparents Aged 60 or Above

 

Year of Assessment

2017/18*
$

 2016/17
$

 2015/16
$

2014/15
$

Single 2,579,000  2,504,000 2,300,000 2,300,000
Married 3,701,000  3,626,000 3,320,000 3,320,000
Married + 1 child^ 4,551,000  4,476,000 4,170,000 3,915,000
Married + 2 children^ 5,401,000  5,326,000 5,020,000 4,510,000
Married + 3 children^ 6,251,000  6,176,000 5,870,000 5,105,000

Including Two Dependent Parents or Grandparents Both Aged 60 or Above and Living With You

 

Year of Assessment

2017/18*
$

 2016/17
$

 2015/16
$

 2014/15
$

Single 3,361,000  3,286,000 2,980,000 2,980,000
Married 4,483,000  4,408,000 4,000,000 4,000,000
Married + 1 child^ 5,333,000  5,258,000 4,850,000 4,595,000
Married + 2 children^ 6,183,000  6,108,000 5,700,000 5,190,000
Married + 3 children^ 7,033,000  6,958,000 6,550,000 5,785,000

Including One Dependent Parent or Grandparent Aged 60 or Above and Living With You and One Disabled Dependent Brother or Sister

 

Year of Assessment

2017/18*
$

 2016/17
$

 2015/16
$

2014/15
$

Single 3,535,250  3,345,500 3,141,500 3,141,500
Married 4,657,250  4,467,500 4,161,500 4,161,500
Married + 1 child^ 5,507,250  5,317,500 5,011,500 4,756,500
Married + 2 children^ 6,357,250  6,167,500 5,861,500 5,351,500
Married + 3 children^ 7,207,250  7,017,500 6,711,500 5,946,500

Being a Single Parent with

 

Year of Assessment

2017/18*
$

 2016/17
$

 2015/16
$

2014/15
$

1 child^ 3,769,000  3,694,000 3,490,000 3,235,000
2 children^ 4,619,000  4,544,000 4,340,000 3,830,000
3 children^ 5,469,000  5,394,000 5,190,000 4,425,000

Note: The effects of the various deductions are not included in the above tables.

^ Not include new born child allowance

* Legislative amendments are required for implementing the tax measures as proposed by the Financial Secretary in the 2017-18 Budget.

Annual Income Levels for the latest 7 years at which Salaries Tax Payers Enter the Standard Rate Zone
Last revision date: April 2017