Guide
MPF tax deduction limits in Hong Kong: HK$18,000 mandatory, HK$60,000 TVC
The Mandatory Provident Fund (MPF) is Hong Kong’s compulsory workplace pension. Some MPF contributions reduce your salaries tax and some don’t. For the 2025/26 year of assessment there are two deductible types: mandatory contributions, capped at HK$18,000, and tax-deductible voluntary contributions (TVC), capped at HK$60,000 combined with qualifying deferred annuity premiums. Claim mandatory contributions in Part 4.3 of BIR60 and TVC in Part 11. Figures are from the IRD, GovHK and the MPF Schemes Authority (MPFA); links are at the end.
To estimate contributions and the deduction, use the Hong Kong MPF calculator. To see the effect on your salaries tax bill, use the Hong Kong Salaries Tax Calculator 2025/26. For a one-line reminder of the HK$18,000 mandatory cap, see the Quick Note MPF tax deduction: the HK$18,000 cap.
Which contributions are deductible
| Contribution | Deductible? | 2025/26 cap |
|---|---|---|
| Employee mandatory contributions | Yes | HK$18,000 |
| Tax-deductible voluntary contributions (TVC) | Yes | HK$60,000, shared with qualifying deferred annuity premiums |
| Ordinary voluntary contributions (e.g. extra via payroll) | No | — |
The two caps are separate. Your employer’s contributions are not your deduction.
Mandatory contributions: where HK$18,000 comes from
Monthly-paid employees contribute 5% of relevant income. Below HK$7,100 a month the employee pays nothing (the employer still does). Above HK$30,000 a month the employee contribution is capped at HK$1,500. HK$1,500 × 12 = HK$18,000, which is also the IRD cap. Someone earning HK$25,000 a month contributes HK$1,250 a month, HK$15,000 a year, all deductible.
Two jobs don’t double the cap. GovHK’s example: an employee with two employers paid HK$30,000 of mandatory contributions in the year but can deduct only HK$18,000. The same single cap applies if you are both an employee and self-employed.
TVC and the shared HK$60,000 cap
- Who can open one: holders of an MPF contribution or personal account, and members of MPF-exempted ORSO schemes. You open it yourself; your employer isn’t involved.
- Cap: From 2020/21 onwards (including 2025/26), HK$60,000 shared with qualifying deferred annuity premiums. TVC is deducted first; any remainder goes to annuity premiums.
- Timing: the deduction follows the date money is paid into the TVC account during the year of assessment (1 April to 31 March). For 2025/26 the cut-off was 31 March 2026.
- Not transferable to a spouse: IRD guidance (DIPN 57) says only the account holder can claim TVC.
- Locked until 65: TVC money can only be withdrawn at 65 or on statutory early-withdrawal grounds, whether or not you claimed the deduction.
How much tax does a TVC save?
Roughly the TVC amount × your marginal rate (2%, 6%, 10%, 14% or 17%; about 15% if you are taxed at the standard rate). Three single-person examples, basic allowance only (arithmetic checked):
- HK$50,000 a month, HK$60,000 TVC. Net income 582,000. Tax falls from 58,500 to 48,300, a saving of HK$10,200 (60,000 × 17%).
- HK$25,000 a month, HK$30,000 TVC. Net income 285,000. Tax falls from 9,420 to 6,300, a saving of HK$3,120, because part of the deduction drops you from the 14% band into the 10% band.
- HK$20,000 a month, HK$20,000 TVC. Tax falls from 3,760 to 2,560, which looks like HK$1,200 saved. But the one-off 2025/26 reduction (100% of tax, capped at HK$3,000) already brings 3,760 down to 760, and 2,560 down to zero. The real saving is HK$760.
So for lower tax bills, TVC did little in 2025/26. In the 17% band, each HK$10,000 of TVC saves about HK$1,700. The reduction is a one-off, so check each year’s rules.
Claiming it on the tax return
GovHK says mandatory contributions are claimed in Part 4.3 of the individual tax return (BIR60), or later on form IR831 if you missed them. TVC and qualifying annuity premiums are claimed in Part 11 of BIR60 (or IR831). The eMPF Platform sends an annual summary showing your TVC for the year. You don’t attach receipts, but keep records in case the IRD asks (usually for six years after the year of assessment).
FAQ
What is the MPF tax deduction limit when filing Hong Kong salaries tax?
For 2025/26, mandatory contributions are deductible up to HK$18,000. TVC and qualifying deferred annuity premiums share a separate aggregate cap of HK$60,000. The two caps do not share each other.
How is MPF counted when filing Hong Kong salaries tax?
Mandatory employee contributions paid in the year are deducted, capped at HK$18,000. TVC is the amount actually paid into a TVC account in the year; if you also paid qualifying annuity premiums, TVC is allowed first, then annuity premiums, up to HK$60,000 in total.
Where do I claim MPF deductions on the tax return?
Mandatory contributions: Part 4.3 of BIR60. TVC and qualifying annuity premiums: Part 11. Missed claims: form IR831. No receipts with the return, but keep records.
What is the difference between mandatory contributions and tax-deductible voluntary contributions?
Mandatory contributions are the statutory employee payments (cap HK$18,000). TVC must go into a TVC account and shares HK$60,000 with qualifying deferred annuity premiums. Extra voluntary contributions through payroll are not deductible.
Are extra voluntary contributions through my employer deductible?
No. Only contributions paid into a TVC account are deductible.
Can I still make a TVC for 2025/26?
No. The year ended on 31 March 2026. A payment now counts for 2026/27.
Can my higher-earning spouse claim my TVC?
No. TVC can only be claimed by the account holder.
When can I withdraw TVC money?
Generally at 65, or earlier only on statutory grounds (see the MPFA).
Sources (checked on 2026-10-12)
- GovHK, Deduction for contributions to MPF schemes and ROR schemes: https://www.gov.hk/en/residents/taxes/salaries/allowances/deductions/mpf.htm
- GovHK, Tax deductions for qualifying annuity premiums and tax deductible MPF voluntary contributions: https://www.gov.hk/en/residents/taxes/salaries/allowances/deductions/annuity.htm
- IRD, PAM 61(e), August 2026: https://www.ird.gov.hk/eng/pdf/pam61e.pdf
- IRD, PAM 38(e): https://www.ird.gov.hk/eng/pdf/pam38e.pdf
- IRD, DIPN 57: https://www.ird.gov.hk/eng/pdf/dipn57.pdf
- IRD, FAQ on tax deductions for qualifying annuity premiums and TVC: https://www.ird.gov.hk/eng/faq/annuity_qp.htm
- MPFA, Mandatory contributions (employees): https://www.mpfa.org.hk/en/mpf-system/mandatory-contributions/employees
- MPFA, Tax deductible voluntary contributions: https://www.mpfa.org.hk/en/mpf-system/voluntary-contributions-or-tax-deductible-voluntary-contributions/tax-deductible-voluntary-contributions
- IRD, 2026-27 Budget tax measures (tax reduction): https://www.ird.gov.hk/eng/tax/budget.htm
Related: Hong Kong salaries tax 2025/26 guide, how MPF contributions work, Quick Note MPF tax deduction: the HK$18,000 cap. Compare with and without a TVC in the Hong Kong MPF calculator and the Hong Kong Salaries Tax Calculator 2025/26.
This article is general information, not tax, investment or financial advice. MPF and TVC investments carry long-term market risk, and your IRD assessment is final. See the disclaimer.