How to calculate Hong Kong stamp duty

Hong Kong stamp duty is calculated by first determining the chargeable consideration (the higher of the contract price and the independent market value), then identifying the buyer type and the applicable scale, applying the marginal band structure to that amount, and finally checking whether marginal relief at a band boundary produces a lower figure. The duty is payable on the date of the sale and purchase agreement, not on completion, so the exact amount must be settled when you sign. Because the bands and rates change, and because each transaction has its own facts, you must verify every figure against the Inland Revenue Department’s (IRD) own online calculator before signing anything.

Order of operations

The calculation follows five steps, always in this sequence:

1. Establish the chargeable consideration. Use the higher of the agreed purchase price or the market value of the flat as determined by the IRD. If you buy below market value, duty is still calculated on the market value. If you buy at or above market value, duty is on the price.
2. Identify the buyer type. A Hong Kong Permanent Resident (HKPR) buying residential property for themselves and not owning any other residential property in Hong Kong at the time of purchase is charged under the lower Scale 2 rates. All other buyers of residential property – including HKPRs who already own a flat, all companies, and non-HKPRs – are charged under the same rates as Scale 2 as of the current rules (see note below). Non-residential property uses Scale 3.
3. Select the correct scale. As of 26 February 2026, residential property is charged under the same rate table for all buyers (the old distinction between Scale 1 and Scale 2 was removed by the Stamp Duty (Amendment) Ordinance 2026). Non-residential property has its own parallel table (Scale 3) that follows the same band structure up to $21,739,120 and then caps at 4.25%.
4. Apply the marginal band. The rate table is not a single percentage. It is a ladder. You locate the band your consideration falls into and apply the calculation described in that band. The duty is the total of the fixed sum for all lower bands plus the percentage on the excess within the current band.
5. Check marginal relief. At certain band boundaries, the duty that falls just above the boundary might be higher than the duty at the next flat-rate band. The IRD provides a lower duty amount for such cases – you take the lesser of the stepped calculation and a flat percentage of the whole consideration. This is explained in the worked examples below.

Current residential rate table (effective 26 February 2026)

The IRD charges Ad Valorem Stamp Duty (AVD) under this table for all residential property, regardless of buyer profile. The table is set out in the Stamp Duty (Amendment) Ordinance 2026 and the IRD’s published rates.

Rounding: Duty is rounded down to the nearest dollar. The IRD’s electronic system does this automatically.

Worked examples

Example 1: First-time HKPR buyer, flat at $4,500,000

This flat falls exactly on the $4,500,000 boundary. Under the table:

• If we treat it as "up to $4,500,000", the calculation would be the stepped rate for $4,000,001–$4,323,780 band, but since $4,500,000 is the top of the next band, we apply the flat 1.5% rate for $4,323,781–$4,500,000.
• 1.5% of $4,500,000 = $67,500.
• Check marginal relief: The stepped band below ($100 + 20% of $500,000 = $100,100) is higher. So the lower figure $67,500 applies.

Duty: $67,500.

Example 2: Existing property owner, flat at $6,500,000 (non-first-time buyer)

This buyer is a HKPR who already owns a flat. Under the unified rates, they are charged the same table as anyone else.

• Consideration: $6,500,000. This falls in the $6,000,001 – $6,642,860 band.
• Calculation: $135,000 + 10% of the excess over $6,000,000.
• Excess = $6,500,000 – $6,000,000 = $500,000. 10% of $500,000 = $50,000.
• Total = $135,000 + $50,000 = $185,000.
• Check marginal relief: The next band up starts at $6,642,861 and charges a flat 3%. 3% of $6,500,000 = $195,000, which is higher. The relief does not apply.

Duty: $185,000.

Example 3: Company buying a luxury flat at $110,000,000

As of February 2026, a company buying residential property is charged under the same table as an individual, and BSD (Buyer’s Stamp Duty) is abolished. No surcharge applies.

• Consideration: $110,000,000. This is above $109,574,470, so the top band applies.
• Flat rate: 6.5%.
• 6.5% of $110,000,000 = $7,150,000.
• Check the band below: For $100,000,001–$109,574,470, duty = $4,250,000 + 30% of excess over $100,000,000. If the consideration were $109,574,470, that would be $4,250,000 + 30% of $9,574,470 = $4,250,000 + $2,872,341 = $7,122,341. At $110,000,000, the top band flat rate gives $7,150,000, which is higher. Relief does not apply.

Duty: $7,150,000.

Non-residential property (Scale 3)

For non-residential property such as commercial or industrial premises, Scale 3 applies. The band structure is identical to the residential table up to $21,739,120. Above that, the rate caps at a flat 4.25% for any amount – there is no higher band and no 6.5% top rate. The buyer type does not affect the rate. For example, a non-residential property at $50,000,000 would be charged 4.25%, giving $2,125,000, with no marginal check needed above the band boundary.

What about earlier rules? (historical context)

Before 26 February 2026, the top residential rate was 4.25% (for amounts above $21,739,120 and up to $100,000,000). The Stamp Duty (Amendment) Ordinance 2026 introduced the 6.5% band for amounts above $100,000,000. If you are looking at a historical transaction (say, a resale from 2024), the rates would have been lower for high-value flats. For transactions before 28 February 2024, Buyer’s Stamp Duty (BSD) and Seller’s Stamp Duty (SSD) also applied. BSD was a flat 15% (later reduced to 7.5%) charged on non-HKPR buyers and companies on top of AVD. SSD was charged on sellers who resold within 36 months (or 24 months for disposals after 25 October 2023). Both BSD and SSD were fully abolished for instruments executed on or after 28 February 2024. If your transaction dates to that earlier period, consult the IRD’s historical rate tables.

What to check next

Do not rely solely on this guide. Every transaction is unique. Before signing the agreement, go to the IRD’s Stamp Duty Calculator at ird.gov.hk and run your exact numbers. The IRD’s system uses the same bands and applies marginal relief automatically. You should also confirm the market value if your purchase price might be below it, as the IRD may reassess. Finally, remember that duty is payable on the agreement date – not on completion – and must be settled within 30 days of the agreement (or the due date is missed and penalties apply).