Hong Kong vs Japan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇭🇰 Hong Kong — No Sub-Regional Tax Variation
Hong Kong is a Special Administrative Region with a simple, low-tax structure. There are no sub-regional taxes. Profits tax applies only to profits arising in or derived from Hong Kong (territorial basis). Property rates are charged at ~5% of assessed rental value. Estate duty was abolished in 2006. Stamp duty on property has been progressively modified since 2022 to cool/stimulate the market. There is no VAT, capital gains tax, or withholding tax on dividends.
🇯🇵 Japan — Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Hong Kong vs Japan: Key Tax Differences (2026)
💰 Income Tax: 🇯🇵 Japan has a higher top income tax rate (2–17% vs 5–45%). 🇭🇰 Hong Kong is more favourable for high earners.
🛒 VAT/Sales Tax: Japan has a higher consumption tax (0% vs 8–10%).
🏢 Corporate Tax: 🇭🇰 Hong Kong offers a lower corporate rate (16.5% vs 30.62%), which can influence business location decisions.
📈 Capital Gains: 🇭🇰 Hong Kong taxes investment gains at a lower rate (0% vs 20.315%), benefiting investors.