Hong Kong Property Rates 2025-26

Key Facts: Hong Kong Property Rates 2025-26

• Non-Domestic Properties: Flat rate of 5% of rateable value
• Domestic Properties (RV ≤ $550,000): 5% of rateable value (98% of properties)
• Domestic Properties (RV > $550,000): Progressive rates apply:
  • 5% on first $550,000
  • 8% on next $250,000
  • 12% on remainder over $800,000
• Government Rent: 3% of rateable value (applicable to New Territories, areas north of Boundary Street, and leases granted after May 27, 1985)
• Payment Schedule: Quarterly in advance (April, July, October, January)
• 2025-26 Rates Concession: Up to $500 for Q1 2025-26 (April-June 2025)
• Valuation Reference Date: October 1, 2024 (effective April 1, 2025)

Important Note: The progressive rating system affects only approximately 2% of private domestic properties (about 42,000 tenements). The remaining 98% of residential properties continue to pay the standard 5% rate.

Annual Rates = Rateable Value × 5%

Quarterly Rates = (Rateable Value × 5%) ÷ 4

Annual Rates =

• ($550,000 × 5%) +
• (Amount from $550,001 to $800,000 × 8%) +
• (Amount over $800,000 × 12%)

Quarterly Rates = Annual Rates ÷ 4

Annual Government Rent = Rateable Value × 3%

Quarterly Government Rent = (Rateable Value × 3%) ÷ 4

Government Rent Applicability: Government rent applies to properties in the New Territories (under New Territories Leases extended to June 30, 2047), areas north of Boundary Street in Kowloon, Outlying Islands, and any land leases granted after May 27, 1985.

Step 1: Determine Your Rateable Value

Find your property's rateable value through:

• The quarterly "Demand for Rates and/or Government Rent" notice
• RVD's Property Information Online (www.rvdpi.gov.hk)
• RVD's website (www.rvd.gov.hk)
• In-person inquiry at 15/F, Cheung Sha Wan Government Offices

Step 2: Identify Your Property Type

Determine whether your property is:

• Domestic (Residential): Houses, flats, apartments
• Non-Domestic (Commercial): Shops, offices, factories, industrial units

Step 3: Apply the Appropriate Rate

• Non-domestic properties: Apply 5% rate
• Domestic properties (RV ≤ $550,000): Apply 5% rate
• Domestic properties (RV > $550,000): Apply progressive rates

Step 4: Calculate Government Rent (if applicable)

If your property is subject to government rent, calculate at 3% of rateable value.

Step 5: Divide by 4 for Quarterly Payment

Rates and government rent are paid quarterly in advance.

Step 6: Apply Any Concessions

For 2025-26, a rates concession of up to $500 applies to Q1 (April-June 2025).

Property Details:

• Type: Domestic (Residential flat in Kowloon)
• Rateable Value: $300,000
• Subject to Government Rent: Yes

Calculation:

Annual Total: $24,000 ($6,000 × 4 quarters, minus $500 concession in Q1 = $23,500 for 2025-26)

Property Details:

• Type: Domestic (Residential apartment in Mid-Levels)
• Rateable Value: $700,000
• Subject to Government Rent: Yes

Calculation:

Annual Rates (Progressive):

• First $550,000 @ 5% = $550,000 × 5% = $27,500
• Next $150,000 @ 8% = $150,000 × 8% = $12,000
• Total Annual Rates = $39,500

Annual Total: $60,500 ($15,125 × 4 quarters, minus $500 concession in Q1 = $60,000 for 2025-26)

Property Details:

• Type: Domestic (Luxury apartment in The Peak)
• Rateable Value: $1,200,000
• Subject to Government Rent: Yes

Calculation:

Annual Rates (Progressive):

• First $550,000 @ 5% = $550,000 × 5% = $27,500
• Next $250,000 @ 8% = $250,000 × 8% = $20,000
• Remainder $400,000 @ 12% = $400,000 × 12% = $48,000
• Total Annual Rates = $95,500

Annual Total: $131,500 ($32,875 × 4 quarters, minus $500 concession in Q1 = $131,000 for 2025-26)

Property Details:

• Type: Non-Domestic (Retail shop in Tsim Sha Tsui)
• Rateable Value: $800,000
• Subject to Government Rent: Yes

Calculation:

Annual Total: $64,000 ($16,000 × 4 quarters, minus $500 concession in Q1 = $63,500 for 2025-26)

Note: Commercial properties use the flat 5% rate regardless of rateable value.

Property Details:

• Type: Non-Domestic (Industrial unit in Kwai Chung)
• Rateable Value: $200,000
• Subject to Government Rent: Yes

Calculation:

Annual Total: $16,000 ($4,000 × 4 quarters, minus $500 concession in Q1 = $15,500 for 2025-26)

Important: Strict penalties apply for late payment

Payment Required Regardless of Objection: If you object to your rateable value (Form R20A), you must still pay the demanded rates by the due date. Any adjustments resulting from successful objections will be backdated and reflected in subsequent demand notices.

• Period: First quarter of 2025-26 (April - June 2025)
• Amount: Up to $500 per rateable tenement
• Applicability: Both domestic and non-domestic properties
• Application: Automatic - no application required
• Coverage: Offsets rates payable only (does NOT apply to Government Rent)

Key Information:

• Objection Period: March 17 - May 31 (for 2025-26 valuations)
• Method: Submit Form R20A (electronic via RVD website or paper form)
• Effective Date: April 1, 2025 (for 2025-26 Valuation List)
• Reference Date: October 1, 2024

Important Requirements:

1. Continue paying rates: Your objection does NOT suspend payment obligations
2. Provide evidence: Submit comparable rental information to support your claim
3. Await decision: RVD will review and make a determination
4. Backdated adjustments: If successful, changes are backdated to April 1, with refunds in subsequent demands

General Rule

Owner/Landlord: Legally responsible for payment to the RVD

Tenancy Agreements

• Tenant pays rates: If specified in the lease, the tenant reimburses the landlord (usually included in monthly rent or as a separate charge)
• Landlord pays rates: Common in some rental agreements where rent is "inclusive of rates"
• Mixed arrangements: Some leases split rates and government rent between parties

Important Notes

• Regardless of internal arrangements, the RVD will pursue the owner for unpaid rates
• Check your tenancy agreement carefully to understand who bears the cost
• Any rates concession benefits the party paying the rates (as specified in the agreement)

Q1: How often is rateable value updated?

Answer: Rateable values are reviewed annually through general revaluation. The 2025-26 values are based on rental levels as of October 1, 2024, and take effect from April 1, 2025.

Q2: Are vacant properties exempt from rates?

Answer: No. Property rates are charged regardless of whether the property is occupied or vacant. Rateable value is based on estimated market rental value, not actual occupancy.

Q3: Do all properties pay government rent?

Answer: No. Government rent applies primarily to:

• Properties in the New Territories (leases extended to June 30, 2047)
• Properties north of Boundary Street in Kowloon
• Outlying Islands properties
• Any land leases granted after May 27, 1985

Properties on Hong Kong Island south of Boundary Street and some older Kowloon leases may not be subject to government rent.

Q4: Can I pay rates annually instead of quarterly?

Answer: No. The law requires quarterly payment in advance. However, you can set up autopay to automate the quarterly payments.

Q5: What happens if my property is under renovation?

Answer: Rates remain payable during renovation. However, if substantial structural changes occur, you should notify the RVD as this may affect the rateable value for future assessments.

Q6: How does the progressive rate system affect car parking spaces?

Answer: Domestic car parking spaces that are separately assessed (have their own rateable value) are subject to the progressive rating system if their rateable value exceeds $550,000. This is rare but can occur for premium parking spaces in luxury developments.

Q7: Are there exemptions for non-profit organizations?

Answer: Certain properties may qualify for rates exemptions, including some properties used for charitable, educational, or religious purposes. Applications for exemption must be made to the RVD with supporting documentation.

Q8: What if I disagree with the RVD's objection decision?

Answer: You can appeal to the Lands Tribunal if you're dissatisfied with the RVD's decision on your rateable value objection.

Official RVD Calculator

The Rating and Valuation Department provides an online calculator to estimate your rates and government rent:

URL: https://www.rvd.gov.hk/en/our_services/calculator.html

How to Use:

1. Select your property type (Domestic or Non-Domestic)
2. Enter your rateable value
3. Click "Calculate"
4. View annual and quarterly rates and government rent

Key Takeaways

• Rateable Value is King: All rates calculations start with your property's rateable value, which represents estimated annual market rent as of October 1, 2024 (for 2025-26).
• Progressive Rates for High-Value Homes: Only 2% of residential properties (RV > $550,000) pay progressive rates; 98% continue at the flat 5% rate.
• Commercial Properties Unchanged: All non-domestic properties pay a flat 5% rate regardless of value.
• Government Rent is Separate: Charged at 3% of rateable value, applies mainly to New Territories, north Kowloon, Outlying Islands, and post-1985 leases.
• Quarterly Payment is Mandatory: Pay by the end of March, June, September, and December. Late payment incurs immediate 5% surcharge, with additional 10% after six months.
• 2025-26 Relief Available: Up to $500 rates concession for Q1 (April-June 2025) automatically applied to all properties.
• Owner Responsibility: Legally, the property owner must pay rates to RVD, though tenancy agreements may require tenants to reimburse.
• Annual Revaluation: Rateable values are reviewed yearly to reflect market rental changes, ensuring fairness and accuracy.
• Right to Object: You can challenge your rateable value (March 17 - May 31 for 2025-26) but must continue paying until resolved.
• Use Official Tools: The RVD's online calculator (www.rvd.gov.hk) provides accurate calculations for your specific property.

Need Professional Tax Advice?

Property rates are just one aspect of Hong Kong property taxation. For comprehensive advice on property investment, rental income tax, stamp duty, and tax planning strategies, consult with qualified tax professionals who understand the nuances of Hong Kong's tax system.

Disclaimer: This article provides general information about Hong Kong property rates calculation as of December 2025. Tax laws and rates are subject to change. While every effort has been made to ensure accuracy, this information should not be considered as professional tax advice. Property owners should verify current rates with the Rating and Valuation Department and consult qualified tax advisors for advice specific to their circumstances.

Last Updated: December 2025
Article ID: 19271