Government rates, annual and quarterly.
Rates after concession
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Annual rates
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Per quarter
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Concession
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Your breakdown
Updates live as you type| Slice of rateable value | Rate | Rates on the slice |
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What rates actually pay for, and who sends the bill
Rates are Hong Kong's recurring charge on occupied property, collected by the Rating and Valuation Department to help fund public services. They are pegged to the rateable value, which is the department's estimate of what your unit would fetch in annual open-market rent. That figure is reassessed periodically, so a flat whose rent has climbed since the last general revaluation can see its rates rise even if you never move. The charge is billed quarterly, in advance, and it falls on the occupier, which in practice usually means the owner unless a tenancy agreement says otherwise.
For non-domestic premises the calculation is flat: the rate this tool applies is 5 percent of rateable value across the board. Domestic units changed in 2024/25 to a progressive structure aimed at higher-value homes, and that is the part worth understanding before you read your demand note.
The progressive domestic bands, slice by slice
The domestic schedule modelled here works like income tax brackets: each slice of rateable value is charged at its own rate, not the whole value at the top rate. The bands this calculator uses are 5 percent on the first $550,000 of rateable value, 8 percent on the next $250,000 up to $800,000, and 12 percent on anything above $800,000. Treat those thresholds as the tool's working assumption and confirm the current figures with the Rating and Valuation Department, since they can shift with each Budget.
A common mistake is to multiply the entire rateable value by 12 percent the moment a home crosses $800,000. That overstates the bill badly. Only the portion above each threshold attracts the higher rate, so the effective percentage always sits below the top band rate.
A $1 million rateable value, worked through the bands
Take a domestic flat with a rateable value of $1,000,000 and apply the 2025/26 concession. The progressive walk produces the figures below, which match what the calculator returns.
The effective rate here is 7.15 percent of rateable value, well short of the 12 percent top band. The concession barely dents a bill this size, because the cap is $500 a quarter against a $17,875 quarterly charge.
Who this helps and where it stops
This tool is most useful for an owner-occupier or a small landlord checking that a demand note looks right, or for a buyer estimating holding costs before an offer. One practical tip: rates and government rent appear on the same demand but are separate charges, so if your bill looks larger than this estimate, the gap is often the 3 percent government rent sitting alongside it. Hong Kong does not levy any annual wealth tax or property value tax beyond rates and government rent, so once you have these two figures you have the full recurring picture for an unlet home.
Do I pay rates if my flat sits empty?
Generally yes. Rates attach to the tenement rather than to occupancy, so a vacant flat still attracts rates. There are limited refund or exemption routes for genuinely unoccupied premises in some circumstances, so check the Rating and Valuation Department's guidance for your situation rather than assuming an empty unit is free.
Why did my rates jump when my rent did not change?
Rateable value tracks open-market rent at a fixed valuation reference date, not the rent you personally charge or pay. After a general revaluation, the department can raise the rateable value to reflect the wider market, which lifts your rates even if your own lease is unchanged.