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How to Calculate HK Stamp Duty When Buying Property

Many buyers think first-time buyers pay less stamp duty, but since 28 Feb 2024 the old Buyer's Stamp Duty (BSD), Special Stamp Duty (SSD) and the first-time/non-first-time split have all been abolished. All residential transactions now pay Ad Valorem Duty (AVD) based on price band only. This guide walks through the calculation with a worked example.

How to Calculate HK Stamp Duty When Buying Property

Stamp duty when buying: AVD only now

From late February 2024, Hong Kong abolished several residential stamp duties. Residential purchases now pay Ad Valorem Duty (AVD) only.

Whether you are a first-time buyer, trading up or investing, the AVD rate for the same price is the same. You no longer need to work out your 'status' before calculating.

Steps: price → band → duty

Step one: confirm the consideration (or market value, whichever is higher). Step two: find the price band in the IRD AVD table. Step three: apply the formula, or just use the stamp duty calculator.

The bands are progressive with marginal relief, so crossing a band does not cause a large jump. The calculator applies this automatically.

A worked example

Suppose you buy a residential property for HK$8M. Under the bands effective 26 Feb 2026, the AVD works out to roughly HK$300k (final figure per IRD).

Enter the price into the stamp duty calculator and it shows the duty, the band and the effective rate instantly — faster and less error-prone than the table.

First-time vs non-first-time (now)

As noted, AVD no longer differs by first-time status. What people call 'first-time discount' usually refers to high-ratio mortgage insurance thresholds, not stamp duty.

If you hear 'first-time buyer stamp duty', it is likely outdated or confusing tax with mortgage insurance. Check the latest bands with IRD and your solicitor.

Other upfront costs beyond duty

Stamp duty is only part of the bill. Legal fees, agent commission (split between buyer and seller) and possibly mortgage insurance make up the rest.

Use the total buying cost calculator to list price, duty, commission and misc fees together, so you don't underestimate the cash needed.

FAQ

Is duty based on price or consideration?

It is based on the higher of the consideration or the market value.

Do first-time buyers get a duty discount?

Since late 2024, residential AVD no longer splits by first-time status; the rate is the same. The 'first-time discount' people mention usually refers to high-ratio mortgage insurance, not tax.

Do non-residential properties pay AVD?

Yes, non-residential property (car parks, shops) also pays AVD, but on a different band structure — confirm the property type before calculating.

Can I use a calculator?

Yes. Enter the price and property type and the stamp duty calculator returns the duty, band and effective rate, with marginal relief applied automatically.

Related tools

The rules above plug straight into these free calculators — enter the numbers, then copy or print the result for your client.

Further reading

About this article

N

NestHK

NestHK editorial team — data analysts and on-the-ground Hong Kong renting & buying researchers turning open government data and public transaction records into actionable neighbourhood advice.

Sources

  • Hong Kong Open Data Portal DATA.GOV.HK (transactions, saleable area, transit)
  • Census and Statistics Department (population & household stats)
  • Transport Department public transit data (walking, fares, frequency)

Figures here are indicative ranges; actual transactions and rents depend on the specific unit and latest market conditions. This page is not investment or legal advice.

Run the numbers first

We turned the trade-offs above into free calculators: mortgage payments, rent affordability, total buying cost, down-payment timeline, rent-vs-buy, and more.

Now put the process to work in a real district

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