Net Rental Yield Calculator
Net yield after costs you enter. Rates and Government rent follow the RVD demand’s rateable value, not a made-up share of collected rent. There is no official typical Hong Kong yield.
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Property & lease parameters
Net rental yield
Net annual income HK$115,380
For 2026-27, domestic rates are 5% of rateable value up to HK$550,000, then 8% and 12%. Government rent, if payable, is 3% of rateable value. Copy the figure from the demand; it is not this year’s collected rent.
IRD’s standard rate for 2026/27 is 15%. After owner-paid rates, a 20% statutory allowance is applied. Government rent and management fees are not separately deductible. Personal assessment can give a different bill.
Net rental yield
Gross rental yield3.60% · Net annual incomeHK$115,380
View return and expense details
Gross rental yield
Annual rent
Annual spend
Net annual income
Management fee
Gross annual rent5%
Rates and government rent
Rates HK$9,000 · rent HK$5,400
Agent commission
0.5Monthly rent
Property tax
Tax rate15% (after 20% repair allowance)
Vacancy losses
1months vacant
This flat, not the market: RVD’s private-domestic rental index for 2026-06 is 205.8, +5.1% year on year. The price index is 323.2, +12.7%. Those index moves are not this flat’s yield. The latest month is provisional. (Property market statistics)
Mortgage instalments stay out of this yield. Compare stamp duty and a later sale on the rent-versus-buy page. Formal rates, Government rent and Property Tax follow the RVD demand and the IRD assessment. Rent vs buy
Hong Kong net rental yield and property tax
Gross rental yield divides annual rent by the property value. It is a first screen, not cash in hand. Management fees, rates, Government rent, letting commission, vacancy and Property Tax all reduce cash flow. Mortgage instalments are financing and should stay out of this yield. There is no official typical Hong Kong residential yield. RVD publishes price and rental indexes, not a yield for a particular flat.
Rates and Government rent follow rateable value, not a percentage of rent collected. For 2026-27, domestic rates are 5% of rateable value up to HK$550,000, then 8% on the next HK$250,000 and 12% on the remainder. RVD says about 98% of private domestic tenements stay at 5%. Government rent, if payable, is 3% of rateable value. Copy the figure from the demand note.
Property Tax for 2026/27 is 15% of net assessable value. IRD first deducts irrecoverable rent and rates the owner agreed to pay and actually paid, then grants the 20% statutory allowance. Government rent, management fees and actual renovation costs are not separately deductible. If the tenant pays the rates, the owner cannot deduct them. A vacant month is only a planning gap; an irrecoverable-rent claim has its own conditions.
Compare two flats with the same denominator—purchase price or current value. Major repairs and selling costs are outside this annual formula. Personal assessment can produce a different tax bill. The RVD demand and the IRD assessment remain decisive.
Data status
Year of assessment 2026/27
Tax rates, allowances and deduction caps follow published Inland Revenue Department information.
Income, deductions and household circumstances are user inputs; the result is an estimate, not an assessment.
Does not cover every eligibility condition, cross-border income, double-tax relief, provisional-tax adjustments or IRD discretion.
2026-08-20: Added the HK$100,000 self-education cap and HK$100 donation minimum, and rechecked the deduction breakdown.
References
- 1Rates(Rating and Valuation Department)
- 2Progressive rating system for domestic tenements(Rating and Valuation Department)
- 3Government rent(Rating and Valuation Department)
- 4Notes for completing a Property Tax return(Inland Revenue Department)
Site data last reviewed: 2026-08-09 · The sources above are for reference only; please refer to the latest official announcements from the relevant organisations.
Think a figure, rule or source needs updating? Report this pageFAQs
What is the difference between gross and net yield?
Are rates a percentage of rent collected?
How is Government rent calculated, and can Property Tax deduct it?
Is there an official typical Hong Kong rental yield?
If the tenant pays rates, can the owner still deduct them?
Does one vacant month mean irrecoverable rent is deductible?
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Client-side only: All data is calculated on your device and is not uploaded to any server. Results are for reference only and do not constitute professional financial or legal advice.