The 2026-27 fiscal budget (to be announced in February 2026) centers on “promoting high-quality development,” focusing on artificial intelligence (AI), finance-empowered industries, and the development of the Northern Metropolis. The government anticipates an overall expenditure increase of 6.9% to HK$843.4 billion, and has announced partial tax relief, raising tax allowances, reducing rates, and enhancing care measures for the public, while prudently managing land sales.
Taxation and relief measures:
Reduce by 100% the salaries tax and personal income tax for the 2025/26 tax year, with a ceiling of HK$3,000.
Increase multiple tax allowances: raise the basic and single-parent tax allowances to 145,000 yuan, and the married person’s tax allowance to 290,000 yuan.
Rates for residential and non-residential properties will be waived for the first two quarters of the 2026/27 fiscal year, with a ceiling of HK$500 per quarter for each household.
Provide an additional month’s payment of Comprehensive Social Security Assistance, Old Age Living Allowance, Higher Old Age Allowance, etc.
Land and Buildings:
The land sale programme for 2026-27 is expected to yield the construction of about 22,000 flats.
The overall supply of public housing will reach 196,000 units in the next five years.
No general commercial land will be put up for sale in the coming year.
Economic Development and Innovative Technology:
Vigorously promote the development of the “AI+” industry, establish a strategic committee, and develop computing infrastructure (Sha Ling Data Park).
Allocate HK$1.66 billion to the Hong Kong Tourism Board to enhance tourism appeal and strengthen the promotion of cultural, arts, and sports development.
To promote the development of the Northern Metropolis District, consultants will be hired to explore the establishment of a high-end professional services zone.
Land and Buildings
The 2026-27 land sale programme is expected to yield the construction of about 22,000 flats.
The overall supply of public housing in the next five years will reach 196,000 units.
No general commercial land will be put up for sale in the coming year.
