Hong Kong has no sales tax, VAT, or GST. There is no consumption tax added at checkout on goods or services, so the price marked on the tag is the price you pay at the register.1Financial Services and the Treasury Bureau. A Goods and Services Tax for Hong Kong – Background Groceries, clothing, electronics, dining, and professional services all come without a tax markup. The government has studied a goods and services tax in the past but never adopted one. All dollar figures below are in Hong Kong dollars.
Because no consumption tax exists at the point of sale, there is also no tourist tax-refund counter at the airport. In countries with a VAT, visitors can often reclaim tax on their way out; Hong Kong has no such scheme because there is nothing to refund. Shopping is genuinely tax-free when you buy.
The Few Products That Do Carry Duty
Hong Kong skips broad consumption taxes but does collect excise duty on four categories of goods under the Dutiable Commodities Ordinance (Cap. 109): liquor above 30% alcohol by volume, tobacco products, hydrocarbon oils (fuel), and methyl alcohol.2Hong Kong Customs and Excise Department. Dutiable Commodities The duty is paid by importers and manufacturers before goods reach shelves, so it doesn’t appear as a separate line on your receipt. It’s already inside the retail price.
Alcohol
Only spirits and drinks above 30% alcohol by volume are dutiable. For a bottle of one litre or less, duty runs at 100% on the first HK$200 of value and 10% on any value above that.3Hong Kong Customs and Excise Department. Types and Duty Rates Wine, beer, and any alcoholic drink at or below 30% alcohol by volume is completely duty-free. Hong Kong dropped duty on those lower-strength beverages in 2008.
Tobacco
Cigarettes are taxed at HK$3,306 per 1,000 sticks, or roughly HK$3.31 each. Cigars and other manufactured tobacco carry specific rates by weight.3Hong Kong Customs and Excise Department. Types and Duty Rates
Fuel
Fuel duty is set per litre and built into the pump price:
- Unleaded petrol: HK$6.06 per litre
- Leaded petrol: HK$6.82 per litre
- Light diesel oil: HK$2.89 per litre
Duty-Free Allowances When You Arrive
Passengers aged 18 or older can bring in limited quantities of dutiable goods for personal use without paying duty:
- 1 litre of liquor above 30% alcohol by volume
- 19 cigarettes, or 1 cigar (or 25 grams of cigars), or 25 grams of other manufactured tobacco
If you hold a Hong Kong Identity Card, the alcohol allowance applies only when you’ve been outside Hong Kong for at least 24 hours. Cross-boundary drivers get no duty-free allowance at all.4Hong Kong Customs and Excise Department. Duty-free Concessions Anything above these limits must be declared and pays full duty.
Other Taxes You Might Encounter
A few charges outside the sales-tax family can still add to the cost of specific transactions.
Hotel Accommodation Tax
Hotel and guesthouse guests pay a 3% Hotel Accommodation Tax on the room rate under the Hotel Accommodation Tax Ordinance (Cap. 348). Collection had been waived from July 1, 2008 through December 31, 2024 and resumed at 3% on January 1, 2025. The tax covers the accommodation charge only, not food, drinks, laundry, or other services billed separately. Hotels with fewer than 10 rooms normally available for guests, and establishments run by non-profits, are exempt.5Inland Revenue Department. Hotel Accommodation Tax6Inland Revenue Department. FAQ on Hotel Accommodation Tax
First Registration Tax on Vehicles
Every motor vehicle used on Hong Kong roads pays a one-time First Registration Tax under the Motor Vehicles (First Registration Tax) Ordinance (Cap. 330). For private cars the rates climb steeply with value:
- First HK$150,000: 46%
- Next HK$150,000: 86%
- Next HK$200,000: 115%
- Any value above HK$500,000: 132%
On a car valued at HK$600,000, the tax alone exceeds HK$430,000.7Transport Department. First Registration Tax Concessions for Electric Vehicles
Stamp Duty on Property and Stocks
Buying residential property triggers ad valorem stamp duty on a sliding scale based on price or value, whichever is higher. Since February 28, 2024 the same scale applies to Hong Kong permanent residents and non-residents alike, after the government abolished the Buyer’s Stamp Duty and other demand-side surcharges. The Special Stamp Duty on properties resold within two years was also abolished from that date.8GovHK. Abolition of Demand-Side Management Measures for Residential Properties Under the scale effective February 26, 2025, rates start at a flat HK$100 for properties valued at HK$4,000,000 or below and rise progressively to 4.25% above roughly HK$21,740,000.9GovHK. Stamp Duty Rates From February 26, 2026 the government proposed a top rate of 6.5% on residential properties above HK$100,000,000, subject to legislative approval.10Inland Revenue Department. 2026-27 Budget – Tax Measures
Trading Hong Kong-listed stocks carries stamp duty of 0.1% on each side of the transaction, for a combined 0.2% per trade. That rate has applied since November 17, 2023.9GovHK. Stamp Duty Rates
How the Government Funds Itself Without a Sales Tax
Hong Kong relies on a narrow set of direct taxes and land-related revenue instead of a broad consumption tax. Profits tax on corporations runs at 8.25% on the first HK$2,000,000 of assessable profits and 16.5% above that; unincorporated businesses pay 7.5% and 15% at the same thresholds. Only profits sourced in Hong Kong are taxed.11Inland Revenue Department. Two-tiered Profits Tax Rates Regime There is no capital gains tax, no withholding tax on dividends, and no estate duty. Combined with the absence of a sales tax, this makes Hong Kong one of the lowest-tax major economies in the world, a longstanding policy tied to its role as a free port.