Information updated 30-second summary Follow G Follow “Midland Realty Property News” on Google
Home purchase stamp duty: five things to know before buying property
Content last verified: 16 October 2026
- Residential properties are subject only to ad valorem stamp duty (AVD): As of 28 February 2024, the additional stamp duty (SSD), buyer’s stamp duty (BSD) and new residential stamp duty (NRSD) have been fully abolished; general residential property transactions now involve only AVD.
- Flat rate of HK$100 for properties priced at HK$4 M or below: As of 26 February 2026, the stamp duty for residential properties priced at HK$4 M or below is a flat rate of HK$100.
- Progressive rates up to 4.25%: Higher property prices attract higher rates, with the top tier (exceeding HK$21,739,120) at 4.25%.
- Same AVD rate for first-time and non-first-time buyers: After the removal of cooling measures, AVD for residential properties no longer distinguishes between first-time and non-first-time buyers; the same rate applies for the same property price.
- Based on the higher of the two values: Stamp duty is calculated on the higher of the “agreed price” and the “market value”; this should be verified before signing the provisional agreement.
Note: The tax rates stated in this article are based on information published by the Inland Revenue Department (IRD) / Gov HK and apply to instruments executed on or after 26 February 2026. The actual amount of stamp duty payable should be determined by the IRD and professional advice.
How is stamp duty calculated when buying a property? One sentence answer:
Stamp duty on residential property transactions in Hong Kong currently involves only ad valorem stamp duty (AVD). As of 28 February 2024, the Special Stamp Duty (SSD), Buyer’s Stamp Duty (BSD) and New Residential Stamp Duty (NRSD) have all been abolished. As of 26 February 2026, properties priced at HK$4 M or below attract a flat rate of HK$100, with progressive rates applying thereafter, up to a maximum rate of 4.25%. Stamp duty is calculated on the higher of the “agreed price” and the “market value”.
Example: For a residential property priced at HK$8 M, the AVD is HK$240,000 (i.e., 3% of the price). To quickly estimate the duty for your property, use the residential stamp duty calculator below.
AVD rates for residential properties in Hong Kong, effective from 2026
The following AVD rates (Part I of Scale 1 and Scale 2) apply to instruments executed on or after 26 february 2026 in respect of residential properties. Where the calculated stamp duty includes an amount less than HK$1, such fractional amount shall be rounded up to HK$1.
| Property prices (transaction prices or market values, whichever is higher) | stamp duty |
|---|---|
| HK$4,000,000 or below | HK$100 |
| HK$4,000,001 – HK$4,323,780 | HK$100 plus 20% of the amount exceeding HK$4,000,000 |
| HK$4,323,781 – HK$4,500,000 | 1.5% of property prices |
| HK$4,500,001 – HK$4,935,480 | HK$67,500 plus 10% of the amount exceeding HK$4,500,000 |
| HK$4,935,481 – HK$6,000,000 | 2.25% of property prices |
| HK$6,000,001 – HK$6,642,860 | HK$135,000 plus 10% of the amount exceeding HK$6,000,000 |
| HK$6,642,861 – HK$9,000,000 | 3% of property prices |
| HK$9,000,001 – HK$10,080,000 | HK$270,000 plus 10% of the amount exceeding HK$9,000,000 |
| HK$10,080,001 – HK$20,000,000 | 3.75% of property prices |
| HK$20,000,001 – HK$21,739,120 | HK$750,000 plus 10% of the amount exceeding HK$20,000,000 |
| HK$21,739,121 or above | 4.25% of property prices |
Note: A transitional band and a top rate of 6.5% apply to residential properties priced above HK$100 M. Such cases are rare for typical homebuyers; therefore, the table above shows 4.25% as the highest rate. For full details of the high-value bands, please refer to the IRD’s original guidance.
Residential Stamp Duty Calculator
Enter the property price (in HK$10,000 units) to calculate the residential AVD applicable from 2026. For example, for a property priced at HK$8 M, enter 800.
Instant calculator Not sure how to enter data? Load sample data first. Enter HK$8 M sample Price (use the higher of transaction price or market value) HK$ million Property type Residential (Standard 1 Part 1 / Standard 2) Non-residential (Standard 3)
Stamp duty payable — Displayed after entering property price Effective tax rate — Stamp duty ÷ property price Property price (HK$) — Converted to HK$
The results are for preliminary reference only.
Examples of stamp duty calculations for different property prices
| Property prices | Ad valorem stamp duty | Effective tax rate |
|---|---|---|
| HK$3,000,000 (HK$3 million) | HK$100 | approximately 0.003% |
| HK$4,000,000 (HK$4 million) | HK$100 | approximately 0.003% |
| HK$5,000,000 (HK$5 million) | HK$112,500 | 2.25% |
| HK$8,000,000 (HK$8 million) | HK$240,000 | 3% |
| HK$10,000,000 (10 million) | HK$370,000 | 3.7% |
| HK$15,000,000 (HK$15 million) | HK$562,500 | 3.75% |
Which stamp duties have been abolished? What stamp duties must residential buyers still pay?
Hong Kong residential properties were previously subject to three “cooling measures” stamp duties: the Special Stamp Duty (SSD), Buyer’s Stamp Duty (BSD), and New Residential Stamp Duty (NRSD, commonly known as the double stamp duty). The Government fully abolished these three cooling-measure duties on 28 February 2024 . As a result, for general residential transactions, regardless of whether the buyer is a first-time buyer or the holding period, only Ad Valorem Stamp Duty (AVD) is payable.
- Ad Valorem Stamp Duty (AVD): remains applicable and is calculated according to the rates in the table above.
- Special Stamp Duty (SSD): has been abolished — no charge applies for short-term resales.
- Buyer’s Stamp Duty (BSD): has been abolished — no charge applies for purchases by non-permanent residents or corporate entities.
- New Residential Stamp Duty (NRSD): has been abolished — the flat 15% rate no longer applies to those holding more than one residential property.
Points to note when paying stamp duty
- Higher of the two: Stamp duty is calculated on the higher of the transaction price and the market value. If the transaction price is significantly lower than the market value, the Inland Revenue Department may assess duty based on the market value.
- Payment deadline: Stamp duty must generally be paid within 30 days of signing the provisional agreement; late payment incurs penalties.
- Stamp duty generally not mortgageable: Stamp duty is one of the property purchase expenses and must be paid in cash, not included in the loan amount.
- Third schedule for non-residential properties: From 26 February 2026, non-residential properties (e.g., commercial, industrial and retail premises) are subject to a newly introduced third schedule of rates, which differs slightly from those for residential properties.
2026 new concession: Stamp duty relief for families purchasing residential units for newborn children (up to HK$20,000)
The 2026 Policy Address, delivered on 16 September 2026, proposed stamp duty relief on ad valorem stamp duty for families purchasing residential units for newborn children, with a cap of HK$20,000 per eligible child (referred to as the “Newborn Child Relief”). This relief operates alongside the above-mentioned AVD — for eligible instruments, the AVD payable is reduced by the lower of the amount calculated under the applicable rate and HK$20,000.
As of the date of the latest verification of this article, the relevant Stamp Duty (Amendment) Bill has not yet been passed by the legislative council. Before the amendment ordinance is enacted and comes into effect, buyers signing instruments must still pay the full amount of AVD under the current schedule 1 part 1 / schedule 2 rates; after the ordinance is passed, eligible instruments may apply for a refund of the excess AVD paid, and the Inland Revenue Department will issue guidance on refund applications.
Eligibility criteria (all must be met):
- The property must be a residential property;
- The residential property must be acquired by one or both parents of a child (“eligible child”) who was born in Hong Kong on or after 16 September 2026, as specified in ;
- Either parent of the eligible child must be a hong kong permanent resident;
- The parent(s) must acquire the property in their own name (not as nominee for another person); and
- The property must be acquired within one year before, or two years after, the eligible child’s date of birth.
| ad valorem stamp duty payable calculated at the applicable rate | Newborn child allowance | Amount payable after reduction |
|---|---|---|
| HK$19,000 | minus HK$19,000 (whichever is lower) | HK$0 |
| HK$21,000 | HK$20,000 (cap on reduction) | HK$1,000 |
- Per child: A couple with two eligible children may receive a maximum concession of HK$40,000 for a jointly owned property.
- Born overseas – not eligible: The measure aims to encourage childbirth in Hong Kong; it does not apply to children born outside Hong Kong.
- Purchased before the ordinance is passed: If ad valorem stamp duty has already been paid on a residential instrument within one year before the eligible child’s birth, and the instrument qualifies for the concession, an application may be made for a refund of excess stamp duty after the amendment ordinance is enacted.
Frequently Asked Questions (FAQ)
How much stamp duty is payable on an HK$8 M property? For a residential property priced at HK$8 M, the ad valorem stamp duty is 3% of the purchase price, i.e. HK$240,000. You can use the calculator in the article to estimate the duty for your own property price. Is it true that only HK$100 is payable for properties priced at HK$4 M or below? Yes. From 26 February 2026, the ad valorem stamp duty for residential properties priced at HK$4 M or below will be fixed at HK$100. Are stamp duties for first-time and non-first-time buyers the same? After the removal of the “cooling measures”, ad valorem stamp duty for residential properties no longer distinguishes between first-time and non-first-time buyers — the same duty applies to the same purchase price. The buyer’s stamp duty (BSD) and new residential stamp duty (NRSD) have been fully abolished. Can stamp duty be included in the mortgage? Generally, no. Stamp duty is a property purchase expense and must be paid in cash; it is not part of the loan amount. Be sure to set aside this sum before paying the deposit. When must stamp duty be paid? Stamp duty must generally be paid within 30 days of signing the provisional agreement for sale and purchase. Late payment incurs penalties. For specific arrangements, consult a solicitor.
Can buying at a low price save stamp duty?
Have SSD, BSD and NRSD all been abolished?
Does having a baby reduce stamp duty when buying a property?
Is the newborn child stamp duty concession applied immediately? What is the maximum reduction?
Summary: How is stamp duty calculated when buying property?
Following the removal of additional stamp duties, Hong Kong residential stamp duty has been significantly simplified: most buyers are required to pay only ad valorem stamp duty, with a flat rate of HK$100 for properties priced below HK$4 M, and a progressive rate up to a maximum of 4.25% for higher-priced properties. Before placing a deposit, remember to calculate duty based on the higher of the transaction price or market value, and set aside cash to pay it—stamp duty generally cannot be included in mortgage financing. For a quick estimate, use the calculator above; the official amount payable is determined by the Inland Revenue Department and professional advice.
Sources and useful links
- Inland Revenue Department / Gov HK: Stamp Duty Charges (revised May 2026)
- Inland Revenue Department: Frequently Asked Questions on Ad Valorem Stamp Duty
- Inland Revenue Department: Calculating Stamp Duty (Property Transfers)
- Inland Revenue Department: Stamp Duty Concessions for Families with Newborn Children Purchasing Residential Units
- Midland Realty: Latest New and Secondary Market Listings
Disclaimer: The information contained in this article is for general reference only and does not constitute any tax, legal, financial or property purchase advice.
Stamp duty rates and policies may be adjusted following government announcements; the actual amount payable is subject to assessment by the Inland Revenue Department. Readers should consult qualified professionals before making any property purchase or financial decisions.
Once stamp duty is budgeted for, the next step is to find a property
Browse Midland Realty’s latest new and secondary market listings and rental listings, or book an appointment with an agent to stay updated on the latest transactions and supply.
中文版 (印花税点计？2026香港住宅印花税率及计算方法)