Take a single residential buyer purchasing a flat for HK$5,000,000. That price sits in the AVD Scale 2 band running from HK$4,500,000 to HK$6,000,000, where the rate is 2.25 percent of the whole price. The stamp duty is therefore HK$5,000,000 times 2.25 percent, which is HK$112,500. The effective rate is 2.25 percent, and the price plus duty comes to HK$5,112,500. By contrast, a flat priced at HK$4,000,000 or below would attract only the flat HK$100 charge, which is the genuine benefit for lower-priced purchases. There is no separate first-time-buyer concession, because the demand-side duties that once penalised non-first-time buyers were abolished on 28 February 2024, so every buyer now pays the same Scale 2 duty.
How it is calculated
The tool applies the ad valorem duty Scale 2 band table. For a price up to HK$4,000,000 a flat HK$100 applies, which is why a first or single buyer below that threshold pays just HK$100. Above HK$4,000,000 a banded percentage applies to the full price, rising through 1.5 percent, 2.25 percent, 3 percent, 3.75 percent and 4.25 percent as the price climbs. The duty is the price times the rate for its band, the effective rate is the duty as a share of the price, and the total adds the duty to the price. This uses a simplified band table where one rate applies across the band; the official schedule adds small marginal-relief zones just above each boundary, so for a price sitting right on a band edge the exact figure can differ slightly. No demand-side duties apply since their abolition in 2024.
Frequently asked questions
Is there a stamp duty discount for first-time buyers in Hong Kong?
There is no longer a separate concession, because the demand-side duties that once penalised non-first-time buyers were abolished on 28 February 2024. Every buyer now pays the same ad valorem duty at Scale 2. The benefit for lower-priced purchases is the flat HK$100 charge that applies to properties valued up to HK$4,000,000.
What AVD Scale 2 rates apply in 2025/26?
For a property priced at HK$4,000,000 or below, the duty is a flat HK$100. Above that threshold, banded rates apply to the full price: 1.5 percent up to HK$4,500,000, 2.25 percent up to HK$6,000,000, 3 percent up to HK$9,000,000, 3.75 percent up to HK$20,000,000, and 4.25 percent above HK$20,000,000. The official schedule also includes small marginal-relief zones at each band boundary, so amounts sitting right at a band edge may differ slightly.
When must stamp duty be paid after signing a sale and purchase agreement?
The buyer must pay ad valorem stamp duty within 30 days of signing the agreement for sale and purchase. Failure to pay on time attracts a penalty of up to ten times the original duty. The duty is stamped on the conveyance document at the IRD Stamp Office or through the IRD e-Stamping portal.
Does the flat HK$100 rate apply to parking spaces and commercial property?
No. The flat HK$100 rate under Scale 2 applies only to residential property. Non-residential properties, including parking spaces sold separately, are subject to a different stamp duty schedule. Buyers of non-residential property should use a separate stamp duty calculator for the correct figures.