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Taiwan vs Hong Kong
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇹🇼 Taiwan
vs
🇭🇰 Hong Kong
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
5–40%
Stable system; cross-strait tax issues remain complex
No change
2–17%
Stable; simple territorial system maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
5%
5% maintained; one of world's lowest VAT rates
No change
0%
No VAT
No change

Corporate Tax Rate

Corporate Tax Rate
20%
20% maintained; Pillar Two compliance
No change
8.25–16.5%
Domestic minimum top-up tax (DMTT) for Pillar Two groups
No change

Capital Gains Tax

Capital Gains Tax
0%
No CGT on securities; land value tax on property
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~31%
NHI funding adequacy review; labor insurance adjustments
No change
~10%
MPF review ongoing; voluntary contributions encouraged
No change
State, Regional & Local Taxes

🇹🇼 TaiwanMunicipal & County Tax Levies

Taiwan's 6 special municipalities (including Taipei, New Taipei, Kaohsiung), 3 cities, and 13 counties each levy local taxes including land value tax (1%–5.5% of announced land value), house tax (1.5%–3.6% on residential; 3%–5% commercial), and vehicle license tax. Land Value Increment Tax (LVIT) on land price gains is a major revenue source. The National Taxation Bureau administers national income and business taxes.

🇭🇰 Hong KongNo Sub-Regional Tax Variation

Hong Kong is a Special Administrative Region with a simple, low-tax structure. There are no sub-regional taxes. Profits tax applies only to profits arising in or derived from Hong Kong (territorial basis). Property rates are charged at ~5% of assessed rental value. Estate duty was abolished in 2006. Stamp duty on property has been progressively modified since 2022 to cool/stimulate the market. There is no VAT, capital gains tax, or withholding tax on dividends.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Taiwan vs Hong Kong: Key Tax Differences (2026)

💰 Income Tax: 🇹🇼 Taiwan has a higher top income tax rate (5–40% vs 2–17%). 🇭🇰 Hong Kong is more favourable for high earners.

🛒 VAT/Sales Tax: Taiwan has a higher consumption tax (5% vs 0%).

🏢 Corporate Tax: 🇭🇰 Hong Kong offers a lower corporate rate (16.5% vs 20%), which can influence business location decisions.

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