2026 Tax Filing: What is the tax exemption amount for married individuals? Who saves more, filing separately or jointly?
For the 2025/26 tax year, the tax exemption for married persons is HK$264,000, which will increase to HK$290,000 starting from 2026/27, and cannot be combined with the basic exemption. Joint assessment is suitable when one party's income is significantly lower; when both parties have high incomes, separate assessment is usually more tax-efficient. Joint assessment must be reapplied for each year.
Summary of key points
- The tax exemption for married persons for the 2025/26 tax year is HK$264,000; it will be adjusted to HK$290,000 starting from 2026/27.
- The tax exemption for married persons cannot be combined with the basic exemption; one must choose one or the other.
- Joint assessment does not necessarily save tax: it is more beneficial when one party's income is low; when both parties have high incomes, filing separately is usually more cost-effective.
- The tax authority will automatically calculate the more favorable option, but it is still recommended to actively calculate and choose afterward.
What is the tax exemption for married persons?
According to the data from the tax bureau, the tax exemption amount for married individuals is a specific exemption for married taxpayers under the Hong Kong salaries tax system. The amount for the 2025/26 year is HK$264,000, and it will be increased to HK$290,000 starting from 2026/27.
| Tax Free Items | 2025/26 | 2026/27 |
|---|---|---|
| Married Person's Allowance | HK$264,000 | HK$290,000 |
| Basic exemption (for reference) | HK$132,000 | HK$145,000 |
Important.The tax exemption for married persons and the basic exemption cannot be claimed simultaneously; only one can be chosen. Usually, the married persons' exemption is selected as it has a higher amount.
The tax exemption for married persons for the 2025/26 year is HK$264,000, which will increase to HK$290,000 starting from 2026/27; this exemption cannot be combined with the basic exemption, and married taxpayers who claim the married persons' exemption cannot claim the basic exemption afterward.
For an overview of the overall calculation method for salaries tax and other tax deductions, please refer toComplete guide to calculating salaries tax and personal tax exemptions.。
Conditions for claiming the tax exemption for married persons
To claim the tax exemption for married persons, one must meet either the marital status condition (living together or supporting a spouse) or the assessment condition (spouse has no salaries tax income, choosing joint assessment or personal income tax), both types of conditions must be met.
According to Section 29 of the Inland Revenue Ordinance, taxpayers must meet the followingMarital status conditionOne of:
- Married and living with spouse; or
- Married but living separately from spouse, but supporting or financially assisting each other.
At the same time, the following must also be metAssessment conditionsOne of:
- The spouse has no assessable salary income for the year;
- The taxpayer and spouse have chosen to file jointly; or
- The taxpayer and spouse have jointly opted for individual income taxation.
Separate assessment vs. joint assessment: what is the difference?
Married individuals in Hong Kong can choose their tax filing method each year. Each method has its applicable scenarios, and it is advisable to understand the differences before making a choice.
| Assessment Methods | Calculation | Tax Allowance | Applicable scenarios |
|---|---|---|---|
| Separate Assessments | Each independently reports income and deductions | Each uses the personal basic allowance HK$132,000 | Both parties have similar or relatively high incomes |
| Consolidated tax assessment | Total income of both parties is calculated together | Shared married persons' allowance HK$264,000 | One party's income is significantly lower or close to zero |
Notes on joint assessment:
- Must actively choose on the tax return each year; it will not automatically carry over
- Check the box to apply for joint assessment in section 4.4 of the individual tax return (BIR60)
- If both parties check the box, the tax authority will automatically allocate it to the more favorable party and notify of the modification
Which filing method is more tax-efficient?
The following two scenarios are calculated using the 2025/26 tax rates (basic allowance HK$132,000, married persons' allowance HK$264,000, excluding other deductions).
Scenario one: one party has a lower income—joint assessment is more beneficial
Jason has an annual income of HK$420,000, and Sophia has an annual income of HK$80,000.
Separate assessment:
- Jason: Taxable income amount HK$288,000 (420,000 − 132,000), progressive tax HK$30,960
- Sophia: Income HK$80,000 is below the basic exemption amount, tax HK$0
- Total:HK$30,960
Joint assessment:
- Total income HK$500,000, less married person's exemption HK$264,000
- Taxable income amount HK$236,000, progressive tax HK$22,120
✅ Joint assessment savings HK$8,840
When one spouse's income is below the basic exemption amount, joint assessment can utilize the higher married person's exemption (HK$264,000), and the tax is usually lower than separate assessment. For example, with one spouse earning HK$420,000 and the other HK$80,000, joint assessment can save about HK$8,840 (2025/26 fiscal year estimate).
Scenario two: Both incomes are high - separate assessment is more beneficial
Jason's annual income HK$480,000, Sophia's annual income HK$460,000, each with mandatory MPF contributions HK$18,000.
Separate assessment:
- Jason: Taxable income amount HK$330,000 (480,000 − 18,000 − 132,000), tax HK$38,100
- Sophia: Taxable income amount HK$310,000 (460,000 − 18,000 − 132,000), tax HK$34,700
- Total:HK$72,800
Joint assessment:
- Total income HK$940,000, less HK$36,000 and married person's exemption HK$264,000
- Taxable income amount HK$640,000, progressive tax HK$90,800
✅ Separate assessment saves HK$18,000
When both spouses have high incomes, combined assessment can push up the progressive tax rate brackets, resulting in an overall increase in tax. For example, with annual incomes of HK$480,000 and HK$460,000, separate assessment saves about HK$18,000 compared to combined assessment (2025/26 fiscal year estimate, both including mandatory MPF contributions deduction).
💡 Longfeng reminds youThe above estimate does not take into account the tax exemptions for supporting parents, children, or other deductible items; actual tax may vary based on individual circumstances. It is recommended to use actual figures for calculations or consult a tax advisor.
How to apply for the married person's tax exemption
Separate assessment (default)
No special application is required. In the individual tax return (BIR60), fill in the marital status and confirm the spouse's ID card information; the tax authority will automatically assess using the married person's tax exemption.
Consolidated tax assessment
- log in (to a computer)Tax easyOr use a paper tax return (BIR60)
- Check "Combined assessment" in section 4.4
- Fill in the spouse's name and Hong Kong ID number
- Submit the tax return
Note:Combined assessment must be reapplied every yearIt will not automatically carry over to the next year.
Frequently Asked Questions
Can I claim the married person's tax exemption in the year of marriage?
Yes. The tax authority considers the marital status within the tax year; as long as the marriage registration is completed at any time during the 2025/26 year (from April 1, 2025, to March 31, 2026), you can claim the married person's tax exemption for that year.
If divorced before filing taxes, can I claim?
Yes. The criterion is whether there was a marital relationship during the tax year, not the status at the time of filing. If you were married during the 2025/26 year, you can still claim for that year even if you divorced before March 2026.
If the spouse is not a Hong Kong resident, can I claim?
Yes. As long as there is a legally valid marriage relationship, a spouse who is not a permanent resident of Hong Kong can also claim. A copy of the marriage certificate may be required for the first application or if the information does not match the tax authority's records.
Can both spouses claim the married person's tax exemption at the same time?
No. Each couple can only claim by one party, and it cannot be duplicated. If both parties check at the same time, the tax bureau will automatically allocate it to the more favorable party and notify the other party to make modifications.
Can I remedy forgetting to claim the tax exemption for married persons?
Yes. After receiving the assessment notice, you can call the tax bureau or submit a written application for correction. You can also fill out the IR831 form to apply for correction after receiving the assessment notice, as long as it is submitted within the tax period.
Conclusion
There is only one core decision regarding the tax exemption for married persons:Should we file jointly or separately? When one party's income is significantly lower, filing jointly is usually more advantageous; when both parties have high incomes, filing separately almost certainly saves taxes. It is recommended to calculate based on actual income figures each year before making a decision.
If you need assistance in calculating the optimal tax filing method or handling tax filing applications, you can learn more.Longfeng Tax Filing Services。
Extended Reading:
Complete guide to calculating salaries tax and personal tax exemptions.
Complete claim conditions for tax exemption for supporting parents
Tax reporting tutorial for self-employed individuals/Freelancers
Calculation of provisional salary tax
Last updated: May 2026.