Hong Kong Stamp Duty Guide for Estate Agents
Checked against official sources: 11 Oct 2026. Rules, fees and dates change, so confirm anything time-sensitive on eaa.org.hk.
Stamp duty is in both exam syllabi (SQE and EAQE Part 3, and leasing in the tenancy part), and it appears in Part II cases where you work out the duty on a sale or a lease by hand. Calculators are not allowed in the exam, so the numbers are chosen to be worked in a minute. This guide sets out the rates in force as at October 2026, from the Inland Revenue Department’s (IRD) Stamp Duty Rates Table IRSD123 (5/2026), with the changes of the last three years and worked examples.
Use the table printed in the paper
To check your working on any price or lease, use the stamp duty calculator.
What has changed since 2023
| Instruments executed on or after | Change |
|---|---|
| 22 Feb 2023 (11 am) | HK$100 band raised from HK$2m to HK$3m |
| 25 Oct 2023 | Buyer’s Stamp Duty (BSD) and New Residential Stamp Duty (NRSD) halved to 7.5%; Special Stamp Duty (SSD) period cut to 24 months |
| 28 Feb 2024 | All residential demand-side management measures withdrawn: no SSD, BSD or NRSD on residential instruments executed from this date |
| 26 Feb 2025 | HK$100 band raised from HK$3m to HK$4m, with a marginal band to HK$4,323,780 (residential and non-residential) |
| 26 Feb 2026 | Residential above HK$100m: top rate 4.25% raised to 6.5%. New Scale 3 for non-residential property |
The 2024 withdrawal was given effect by the Stamp Duty (Amendment) Ordinance 2024, gazetted 19 April 2024. The 2026 changes were announced in the 2026-27 Budget and apply to instruments executed on or after 26 February 2026. The IRD already shows them in its current rates table.
Out-of-date study materials
AVD on sales: residential (Scale 2 / Part 1 of Scale 1)
| Consideration or value (whichever is higher) | Duty |
|---|---|
| Up to HK$4,000,000 | HK$100 |
| HK$4,000,001 – 4,323,780 | HK$100 + 20% of the excess over HK$4,000,000 |
| HK$4,323,781 – 4,500,000 | 1.5% |
| HK$4,500,001 – 4,935,480 | HK$67,500 + 10% of the excess over HK$4,500,000 |
| HK$4,935,481 – 6,000,000 | 2.25% |
| HK$6,000,001 – 6,642,860 | HK$135,000 + 10% of the excess over HK$6,000,000 |
| HK$6,642,861 – 9,000,000 | 3% |
| HK$9,000,001 – 10,080,000 | HK$270,000 + 10% of the excess over HK$9,000,000 |
| HK$10,080,001 – 20,000,000 | 3.75% |
| HK$20,000,001 – 21,739,120 | HK$750,000 + 10% of the excess over HK$20,000,000 |
| HK$21,739,121 – 100,000,000 | 4.25% |
| HK$100,000,001 – 109,574,470 | HK$4,250,000 + 30% of the excess over HK$100,000,000 |
| Over HK$109,574,470 | 6.5% |
Non-residential property (Scale 3) uses the same bands up to 4.25%, with no 6.5% band. Scale 3 is the same as the residential scale that applied before 26 February 2026.
Why the marginal bands exist
The “HK$100 + 20%” and “+ 10%” rows smooth the jump between flat rates. Without them, a price HK$1 above a threshold would cost tens of thousands more in duty. In the exam, check which row the price falls in before applying a percentage. A price of HK$6,300,000 is in a marginal row, not the 3% row.
Worked examples (by hand)
Sales, residential, executed in 2026
HK$3,880,000: up to HK$4m, so duty is HK$100.
HK$4,200,000: marginal row. HK$100 + 20% × HK$200,000 = HK$100 + HK$40,000 = HK$40,100.
HK$6,300,000: marginal row. HK$135,000 + 10% × HK$300,000 = HK$165,000.
HK$8,000,000: 3% × HK$8,000,000 = HK$240,000.
HK$12,000,000: 3.75% × HK$12,000,000 = HK$450,000.
Quick method for percentages without a calculator: 1% of HK$12,000,000 is HK$120,000, so 3.75% is 3 × 120,000 plus three quarters of 120,000: 360,000 + 90,000 = HK$450,000.
When AVD is paid, and by whom
- AVD is charged on the agreement for sale (residential since 1992, non-residential since 23 February 2013). Once the agreement is stamped, the assignment pays a fixed HK$100.
- Stamp within 30 days after the relevant date.
- If the provisional agreement is replaced by a formal agreement between the same parties on the same terms within 14 days, only the formal agreement is stamped, within 30 days of its execution.
- If the formal agreement comes more than 14 days later, the provisional agreement pays AVD within 30 days, and the formal agreement pays HK$100.
- Purchaser, vendor and anyone using the instrument are jointly and severally liable to the IRD. The agreement says which party bears the cost between them.
Source: IRD Stamp Office Interpretation and Practice Notes No. 1 (Revised, Nov 2018), paras 30–32, and the IRD AVD FAQ, checked 11 Oct 2026.
Lease stamp duty
| Lease term | Duty |
|---|---|
| Not defined or uncertain | 0.25% of the yearly or average yearly rent |
| Up to 1 year | 0.25% of the total rent for the term |
| Over 1 year, up to 3 years | 0.5% of the yearly or average yearly rent |
| Over 3 years | 1% of the yearly or average yearly rent |
| Key money, construction fee etc. stated in the lease | 4.25% of the consideration if rent is also payable; otherwise as for a sale |
Leases
2-year lease at HK$25,000 a month: yearly rent HK$300,000 × 0.5% = HK$1,500.
1-year lease at HK$18,000 a month: total rent HK$216,000 × 0.25% = HK$540.
2-year lease, HK$20,000 a month, first 2 months rent-free: total rent 22 × 20,000 = HK$440,000; average yearly rent HK$220,000 × 0.5% = HK$1,100.
Tenancy agreements are stamped within 30 days of signing. Late stamping attracts a penalty of up to 2 times the duty if up to 1 month late, 4 times if 1 to 2 months late, and 10 times after that; the Collector may remit it (IRD FAQ on stamping tenancy agreements, checked 11 Oct 2026). Landlord and tenant often agree to share lease duty equally. For a Part IVA regulated tenancy of a subdivided unit, the landlord bears it alone. See tenancy rules for agents.
Traps examiners set
- Using the consideration when the value is higher. Duty is on whichever is higher.
- Applying BSD or SSD to a 2026 residential sale. Both were withdrawn from 28 Feb 2024.
- Counting the rental deposit in lease duty. Deposits are excluded.
- Forgetting to round the rent up to the nearest HK$100 before applying the lease rate.
- Stamping both the provisional and formal agreement at full AVD when they are 14 days apart or less.
Takeaway
Sources: IRSD123 (5/2026), IRD historical rates, IRD press release, 26 Feb 2025, IRD press release, 4 Mar 2026 and IRD demand-side measures FAQ. Rates change with Budgets; confirm on ird.gov.hk.
Frequently asked questions
Is there still Buyer's Stamp Duty in Hong Kong?
No. Buyer's Stamp Duty, Special Stamp Duty and New Residential Stamp Duty do not apply to residential instruments executed on or after 28 Feb 2024.
How much stamp duty is payable on a HK$4 million flat?
HK$100, for instruments executed on or after 26 Feb 2025, when the HK$100 band was raised from HK$3m to HK$4m (IRD rates table IRSD123).
What is the highest stamp duty rate on residential property?
6.5% for residential property above about HK$109.6 million, for instruments executed on or after 26 Feb 2026, with a marginal band from HK$100 million.
How is stamp duty on a tenancy calculated?
By term: 0.25% of total rent for up to 1 year; 0.5% of the yearly rent for over 1 to 3 years; 1% of the yearly rent for over 3 years. Deposits are excluded.
Study notes for this guide
Put it into practice
Exam-style questions for the EAA SQE and EAQE, with worked explanations and timed mocks in the real Part I and Part II format.
Build a daily practice habit : a few exam-style questions a day, with worked answers. Free to start.
Start practising →Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator. This guide is general information for exam preparation, not legal advice.