Hong Kong Stamp Duty Basics for Property Buyers 2026: Residential Buyer Rates and Exemptions

Summary

Updated 8 October 2026 to reflect current Inland Revenue Department (IRD) rates and rules.

Hong Kong residential buyers now face one main stamp duty: ad valorem stamp duty (AVD) at Scale 2 rates. The extra duties that once hit non-permanent residents, buyers who already own a home and short-term resellers no longer apply. Buyer's Stamp Duty (BSD) and Special Stamp Duty (SSD) do not apply to any instrument executed on or after 28 February 2024. From the same date, the higher AVD rate under Part 1 of Scale 1 was amended to match Scale 2.

For agreements executed on or after 26 February 2026, AVD is a flat HK$100 on homes up to HK$4,000,000. It then rises through bands of 1.5% to 4.25%. The 4.25% rate covers homes from HK$21,739,121 to HK$100,000,000, and a new 6.5% rate applies above HK$109,574,470. A HK$25,000,000 home pays HK$1,062,500.

Key points:

• Every residential buyer pays AVD at Scale 2 rates, whether or not they are a Hong Kong permanent resident (HKPR) or already own a home.
• Homes up to HK$4,000,000 pay a flat HK$100. The threshold was HK$2,000,000 until February 2023.
• The 4.25% rate applies up to HK$100,000,000. Above that, marginal relief leads to a 6.5% rate from HK$109,574,471.
• BSD and SSD are gone for instruments executed on or after 28 February 2024.
• Agreements must be stamped within 30 days. Late stamping costs 2, 4 or 10 times the duty.

What this means for Hong Kong

AVD: one rate table for every residential buyer

AVD is charged on the stated consideration or the value of the property, whichever is higher. Before 28 February 2024, buyers who were not HKPRs, or who already owned a residential property in Hong Kong, paid AVD under Part 1 of Scale 1 at a higher flat rate. IRD confirms that from 28 February 2024 the Part 1 of Scale 1 rate "is amended to the same as those of AVD at Scale 2". In practice, every residential buyer's duty is now worked out from the same table.

AVD rates for residential property, instruments executed on or after 26 February 2026:

A percentage rate applies to the whole price, not just to the part above a band threshold. The "marginal relief" rows between the percentage bands stop the duty from jumping sharply when a price crosses a band boundary.

The 6.5% band is new. IRD says the rate for residential property above HK$100,000,000 rises from 4.25% to 6.5% for instruments executed on or after 26 February 2026. From 26 February 2025 to 25 February 2026, the table was the same up to HK$21,739,120, and 4.25% applied to everything above that.

Worked examples

All examples use the IRD table above for instruments executed on or after 26 February 2026. The result is the same for a first-time HKPR buyer, a non-permanent resident and an existing owner.

• HK$4,000,000: at or below the threshold, so the duty is a flat HK$100.
• HK$5,000,000: in the 2.25% band. HK$5,000,000 × 2.25% = HK$112,500.
• HK$6,000,000: still in the 2.25% band. HK$6,000,000 × 2.25% = HK$135,000.
• HK$10,000,000: in a marginal relief band. HK$270,000 + 10% × (HK$10,000,000 − HK$9,000,000) = HK$270,000 + HK$100,000 = HK$370,000, or 3.7% of the price.
• HK$25,000,000: in the 4.25% band (HK$21,739,121 to HK$100,000,000). HK$25,000,000 × 4.25% = HK$1,062,500.

BSD and SSD: removed from 28 February 2024

IRD states that under the Stamp Duty (Amendment) Ordinance 2024, gazetted on 19 April 2024, any instrument executed on or after 28 February 2024 for the sale and purchase or transfer of residential property is no longer subject to BSD or SSD.

• BSD applied to residential purchases by non-HKPRs and companies. It was 15% from 27 October 2012 to 24 October 2023, and 7.5% from 25 October 2023 to 27 February 2024.
• SSD applied to residential property resold within 24 or 36 months of purchase, depending on when it was bought and sold, at rates of up to 20%.

The old rules now matter only for instruments executed before 28 February 2024. For stamp duty purposes, a property counts as acquired on the date of the provisional agreement. So if a provisional agreement was signed before 28 February 2024, the old duties can still apply even if the formal agreement was signed later.

The flat HK$100 duty now covers homes up to HK$4 million

The flat HK$100 duty has been raised twice since 2023. IRD's rate history shows:

• Up to HK$2,000,000 for instruments executed before 11 am on 22 February 2023
• Up to HK$3,000,000 from 11 am on 22 February 2023 to 25 February 2025
• Up to HK$4,000,000 from 26 February 2025

Because every residential buyer now pays at Scale 2 rates, the HK$4,000,000 threshold applies whether or not the buyer is a permanent resident or already owns a home. Just above the threshold, marginal relief applies. A HK$4,200,000 home, for example, pays HK$100 + 20% × HK$200,000 = HK$40,100.

Exemptions and reliefs

IRD lists these residential acquisitions as exempt from AVD:

• Transfer of a property to a beneficiary of a deceased person's estate under a will or the law of intestacy, or by right of survivorship
• Acquisition or transfer by or to a body corporate from an associated body corporate, subject to the conditions for intra-group relief
• Nomination of a close relative who does not own any other residential property in Hong Kong at the time of nomination
• Acquisition or transfer by or to the Government
• Gifts of property received by charitable institutions exempt from tax under section 88 of the Inland Revenue Ordinance

Transfers between close relatives (spouse, parents, children, brothers and sisters) are not exempt. IRD treats them as chargeable at Scale 2.

Proposed newborn concession. On 16 September 2026, the Chief Executive's 2026 Policy Address proposed cutting AVD by up to HK$20,000 for parents who buy a residential property within one year before or two years after the birth in Hong Kong of a child born on or after 16 September 2026. Either parent must be a HKPR, and the parent must buy on their own behalf. The concession depends on an amendment bill being passed. Until then, IRD says full AVD is payable, and eligible parents can claim a refund of the excess once the law is in force.

Deadlines and late-stamping penalties

IRD sets these time limits for stamping property instruments:

• Agreement for sale: within 30 days after the "relevant date", which is generally the date of the first agreement for sale (usually the provisional agreement). If a formal agreement is executed within 14 days of the provisional agreement, the formal agreement must be stamped within 30 days after it is executed.
• Assignment: within 30 days after the date of execution. Once the agreement has been stamped with AVD, the assignment that follows is charged a fixed duty of HK$100.

Late stamping, or failing to stamp, carries a penalty on top of the duty:

The Collector of Stamp Revenue may reduce or waive the penalty. A request for this must be made in writing, with an explanation of the delay and supporting evidence, and submitted with the stamping application. The buyer, the seller and anyone who uses the instrument are jointly and severally liable for AVD, whatever the parties agree between themselves.

What to do next

• Check the date on your provisional agreement first. That date decides which rate table applies, with key changes on 28 February 2024, 26 February 2025 and 26 February 2026.
• Work out AVD from the IRD table, using the higher of the price and the property's value. Check whether the price falls in a marginal relief band.
• Diary the 30-day stamping deadline from the provisional agreement. Missing it can cost 2 to 10 times the duty.
• If you are expecting a child, or had one on or after 16 September 2026, keep records of the birth date and purchase date in case the newborn concession becomes law.
• Ask a Hong Kong solicitor to confirm the duty on less common structures, such as company purchases, several units under one agreement, or nominations.
• Ready to search for or list a property in Hong Kong? Start here: proprkey.com/en/onboarding