Cheapest Tax Loans in Hong Kong 2020

Tax loans are low-cost borrowing tools available during the tax season (October-April). Below, we highlight the cheapest tax loans offered in Hong Kong.

LoanGreat For:Monthly Flat RateTenor
Hang Seng Tax Comforter Loan6-mo, HK$5k loansFrom 0.16%6 months-5 years
ICBC Personal Tax Loan6-mo loans up to HK$10kFrom 0.09%6 months-2 years
CNCBI Dollar$mart Tax Installment Loan1-yr, HK$5k loansFrom 0.02%1-2 years
CMB "Easy Pay" Salaries Tax Loan1-yr loans up to HK$10kFrom 0.16%6 months-2 years
CCB Tax Loan18-mo, HK$5k loansFrom 0.20%1-2 years
BOC "iSmart" Tax Loan18-mo loans up to HK$10kFrom 0.11%6-18 months
CNCBI Dollar$mart Tax Installment Loan2-yr tax loans up to HK$1.5mnFrom 0.02%1-2 years
Lendela Tax Instalment LoansCustomised loan offersVaries by lender3 months-5 years
UA Finance Tax LoanLow-Income borrowers seeking a tax loanFrom 0.27%3 months-5 years
Standard Chartered Tax Loan
  • 1-yr loans from HK$200k-HK$1.5mn
  • 3-5 yr loans of up to HK$1.5mn
From 0.09%1-5 years
DBS Tax Season Loan1-2 yr loans over HK$1.5mnFrom 0.08%1-2 years
Citi Tax Season Loan3-5 yr loans over HK$1.5mnFrom 0.09%6 months-5 years
Lowest rates shown are for general public, select customers may qualify for lower rates

Tax loans are a type of personal loan offered with low special rates during the tax season (October to April). Since the duration and size of a loan can impact the total cost of your, finding the cheapest tax loan depends on your personal circumstances. In general, large loans offer lower interest rates than small ones, and loans with a shorter duration are less expensive than longer-term loans. However, the expected salary tax for a single consumer with no dependents is only HK$2,320, and the minimum loan amount for most tax loans is at least HK$5,000.

Below, we've highlighted the cheapest tax loans on the market, both for those looking to borrow just enough to cover their expenses, and those looking for an opportunity to enjoy promotionally low rates on a personal loan.

Graph comparing the total cost of 3-year, HK$100,000 debt consolidation loans
LoanGreat For:Monthly Flat RateTenor
Hang Seng Tax Comforter Loan6-mo, HK$5k loansFrom 0.16%6 months-5 years
ICBC Personal Tax Loan6-mo loans up to HK$10kFrom 0.09%6 months-2 years
CNCBI Dollar$mart Tax Installment Loan1-yr, HK$5k loansFrom 0.02%1-2 years
CMB "Easy Pay" Salaries Tax Loan1-yr loans up to HK$10kFrom 0.16%6 months-2 years
CCB Tax Loan18-mo, HK$5k loansFrom 0.20%1-2 years
BOC "iSmart" Tax Loan18-mo loans up to HK$10kFrom 0.11%6-18 months
CNCBI Dollar$mart Tax Installment Loan2-yr tax loans up to HK$1.5mnFrom 0.02%1-2 years
Lendela Tax Instalment LoansCustomised loan offersVaries by lender3 months-5 years
UA Finance Tax LoanLow-Income borrowers seeking a tax loanFrom 0.27%3 months-5 years
Standard Chartered Tax Loan
  • 1-yr loans from HK$200k-HK$1.5mn
  • 3-5 yr loans of up to HK$1.5mn
From 0.09%1-5 years
DBS Tax Season Loan1-2 yr loans over HK$1.5mnFrom 0.08%1-2 years
Citi Tax Season Loan3-5 yr loans over HK$1.5mnFrom 0.09%6 months-5 years
Lowest rates shown are for general public, select customers may qualify for lower rates

Tax loans are a type of personal loan offered with low special rates during the tax season (October to April). Since the duration and size of a loan can impact the total cost of your, finding the cheapest tax loan depends on your personal circumstances. In general, large loans offer lower interest rates than small ones, and loans with a shorter duration are less expensive than longer-term loans. However, the expected salary tax for a single consumer with no dependents is only HK$2,320, and the minimum loan amount for most tax loans is at least HK$5,000.

Below, we've highlighted the cheapest tax loans on the market, both for those looking to borrow just enough to cover their expenses, and those looking for an opportunity to enjoy promotionally low rates on a personal loan.

Graph comparing the total cost of 3-year, HK$100,000 debt consolidation loans

If you need a quick cash infusion and happen to be shopping for a loan out of tax season, consider applying for one of the cheapest personal loans in Hong Kong for the best year-round rates.

Cheapest Tax Loans for Borrowing up to HK$10,000

Most tax loans in Hong Kong have a minimum loan size of either HK$5,000 or HK$10,000. Since the average taxpayer can expect to pay about HK$2,320, consumers who only want to borrow a small amount should consider the following tax loans.

Cheapest Small Tax Loans by Amount and Duration

HK$5,000 LoanUp to HK$10,000 Loan
6 monthsHang SengICBC
1 YearCNCBICMB Wing Lung
18 monthsCCBBOC
2 yearsCNCBI

Cheapest 6-Month Tax Loans of up to HK$10,000: Hang Seng Tax Comforter Loan & ICBC Personal Tax Loan

6 Month Monthly Flat Rate
0.260%
0.175%
6 Month APR
5.460%
3.650%
Handling Fee
None
None
Total Cost: HK$5,000 Loan
HK$78.51
Not Available
Total Cost: HK$10,000 Loan
HK$157.02
HK$105.46
ICBC Personal Tax Loan has a minimum loan amount of HK$10,000

Hang Seng's Tax Comforter Loan is ideal for consumers looking to quickly pay down a minimal tax loan of HK$5,000. This is great for consumers who only want enough money to cover their salary tax expenses, rather than using the tax season as an opportunity for a low-cost loan. Paying off a tax loan in a short 6-month duration can allow consumers to save money on costly interest expenses, and avoid accumulating long-term debt. If you're looking for a small loan to take care of immediate financial concerns that you want to pay down quickly, consider the Hang Seng Tax Comforter Loan.

The ICBC Personal Tax Loan is a great for consumers seeking a larger, short-term loan. Although it has a HK$10,000 minimum principal amount which prevents it from being the best option for very small loans, it's still very affordable with a monthly flat rate of just 0.175% for 6-month, HK$10,000 loans. Existing ICBC banking, loan and credit card customers (as well as members of select professions) pay even lower monthly interest rates of 0.170% on a 6-month HK$10,000 loan. Like many of the best tax loans in Hong Kong, ICBC Personal Tax Loan has no handling fees.

Cheapest 1-Year Tax Loans of up to HK$10,000: CNCBI Dollar$mart Tax Installment Loan & CMB "Easy Pay" Salaries Tax Loan

1-Year Monthly Flat Rate
0.08%
0.16%
1-Year APR
3.14%
3.13%
Handling Fee
1% of Loan Amount Per Annum
None
Total Cost: HK$5,000 Loan
HK$97.00
Not Available
Total Cost: HK$10,000 Loan
HK$194.00
HK$193.70

The CNCBI Dollar$mart Tax Installment Loan is the cheapest option on the market for 1-year, HK$5,000 tax loans. General borrowers pay a monthly flat rate of just 0.08%, and select CNCBI customers and certain professionals are entitled to even lower rates. The loan does have a 1% handling fee, but it is still one of the cheapest 1-year loans for amounts of HK$1,000,000 or less.

CMB Wing Lung's "Easy Pay" Salaries Tax Loan is great for consumers looking for a slightly larger loan to pay off in less than a year. Its monthly flat rate of 0.16% is higher than CNCBI Dollar$mart's, but its overall APR (Annual Percentage Rate) is lower due to a lack of handling fees. Like CNCBI, CMB offers preferential rates for its existing customers, so customers of either bank should examine exclusive offers they may be eligible for.

An easy way to keep your tax loan debt manageable is to borrow for only one year or less. Doing this means that you won't have to worry about next year's taxes while still paying for last year's tax loan.

Cheapest 18-Month Tax Loans of up to HK$10,000: CCB Tax Loan & BOC "iSmart" Tax Loan

18-Month Monthly Flat Rate
0.20%
0.18%
18-Month APR
4.70%
4.00%
Handling Fee
None
None
Total Cost: HK$5,000 Loan
HK$121.33
Not Available
Total Cost: HK$10,000 Loan
HK$242.66
HK$216.07

CCB Tax Loan is another great option for consumers seeking a loan of only HK$5,000 that they can pay off in under 2 years. The loan has a monthly flat rate of 0.20% per month, the lowest among lenders offering the slightly irregular 18-month loans of just HK$5,000. Select borrowers like existing banking, loan and credit card customers can borrow at monthly flat rates as low as 0.10% for larger, long-term loans.

Although the "iSmart" Tax Loan from BOC has a higher minimum loan amount of HK$10,000, it is the cheapest 18-month loan of this size. The loan has a market-leading monthly flat rate of just 0.18% at this amount and tenure, and has no applicable handling fees.

Cheapest 2-Year Tax Loan of up to HK$10,000: CNCBI Dollar$mart Tax Installment Loan

Great for 2-year loans of up to HK$1.5mn

Promotion Special rates for select customers
Min. Annual Salary HK$84,000
Max. Loan HK$2,000,000 (or 12x monthly salary)
Handling Fee 1% of loan amount p.a.
Loan Tenor 1-2 years

In addition to being the cheapest 1-year, HK$5,000 tax loan, CNCBI Dollar$mart Tax Installment Loan is also the best option for borrowing up to HK$1,500,000 over a 2-year tenure. General consumers pay a monthly flat rate as low as 0.02%, and select existing customers and licensed professionals can pay as little as 0.01% per month. CNCBI does have a 1% handling fee per year, which becomes more costly with larger loan sizes, but interest rates that the bank offers are among the lowest on the market.

Best Tax Loan for Low-Income Borrowers

Consumers unable to qualify for tax loans with banks due to their income or credit score should consider these options with low or no minimum income requirements.

Lendela Tax Loans

Great for borrowers seeking customised loan offers from a variety of lenders

Promotion N/A
Min. Annual Salary HK$84,000
Max. Loan HK$500,000
Handling Fee Varies by lender
Loan Tenor 3 months-5 years

If you've had trouble applying for tax loans with individual banks in the past, consider applying through Lendela's platform. Once you submit a free application, Lendela will automatically compare the cheapest tax loans available based on a borrower's financial profile. The platform offers an advertised APR (annual percentage rate) of 5.69% and loan disbursement times as low as 2-3 days. Lendela does have a HK$7,000 monthly minimum income requirement, so consumers who earn less than that may want to consider UA Finance's offerings. Nonetheless, Lendela's tax loan platform is a great alternative to applying with traditional lenders.

UA Finance Tax Loan

Great for consumers with no proof of income

Promotion Qualifying customers can also apply for special rates on revolving loans
Min. Annual Salary Not Listed
Max. Loan HK$500,000
Handling Fee Not Listed
Loan Tenor 3 months-5 years

UA Finance is one of the few lenders in Hong Kong which allows consumers to take out tax loans without proof of income. UA's straightforward application requires you to submit just your HKID Card and tax demand note. Borrowers can take out loans of up to HK$500,000 with durations between 3 months and 5 years. By comparison, most tax loans in Hong Kong limit durations to 1-2 years. The UA Finance Tax Loan advertises a monthly flat rate as low as 0.270%, and while this isn't the competitive rate on the market, it's a great option for those without proof of income.

Best Tax Loan Promotions

Consumers looking to make the most of seasonally low interest rates to take out large loans should consider the following options. Below we've identified the tax loans offering the best promotions and lowest publicly available APR's.

Standard Chartered Tax Loan

Great for borrowers looking for accessible cash coupons

Promotion Up to HK$2k cash rebate
Min. Annual Salary HK$96,000
Max. Loan HK$2,000,000 (or 18x monthly salary)
Handling Fee None
Loan Tenor 1-5 years

Consumers looking to pay off a large loan of between HK$200,000 and HK$1,500,000 should definitely consider Standard Chartered's Tax Loan. The bank offers a monthly flat rate as low as 0.09% and has no handling fees. On top of this, new customers can receive up to HK$2,000 in cash coupons for successfully applying online.

DBS Tax Season Loan

Great for consumers looking for generous referral-based rewards

Promotion Up to HK$10,000 travel coupon based on number of referrals
Min. Annual Salary HK$80,000
Max. Loan HK$2,000,000 (or 20x monthly salary)
Handling Fee None
Loan Tenor 1-2 years

The DBS Tax Season Loan's most recent promotion offers supermarket or travel coupons for referring additional customers. For example, consumers who borrow at least HK$200,000 and refer at least 5 eligible borrowers can enjoy a travel coupon worth HK$10,000. Referred customers can also enjoy up to HK$200 in coupons depending on the duration of their loan. DBS Tax Season Loan also has no handling fee and an APR as low as 1.78%, making it one of the cheapest options for consumers borrowing HK$1,500,000 or more.

Citi Tax Season Loan

Great for existing Citibank customers and others seeking competitive rebates

Promotion Up to HK$6k in cash coupons for select customers (up to HK$4.5k for other customers)
Min. Annual Salary HK$72,000
Max. Loan HK$2,000,000 (or 12x monthly salary)
Handling Fee None
Loan Tenor 6 months-5 years

Citibank's Tax Season Loan currently has one of the best cashback promotions on the market. Select Citigold and Citigold Private Client customers can enjoy up to HK$6,000 in cash rebates for applying for a loan of HK$1,500,000 or more (up to HK$4,500 for other customers). This high rebate, a monthly flat rate as low as 0.090%, and the flexibility to take out a loan for up to 5 years makes Citi Tax Season Loan ideal for consumers looking to borrow HK$1,500,000 or more over a tenure of 1 to 5 years.

Best Long-Term Tax Loans

Consumers looking for low, manageable monthly payments may want to consider tax loans with available tenors longer than 2 years. Spreading payments out over a longer period of time (3-5 years) allows consumers to enjoy smaller monthly payments. The drawback to this is that the total cost of a longer term loan is generally higher than a shorter duration one of the same amount. Nonetheless, you should definitely considers the following loans if you want to minimize your monthly loan costs.

Standard Chartered Tax Loan

Great for people looking for a 3-5 year loan of up to HK$1.5mn

Promotion Up to HK$2k cash rebate
Min. Annual Salary HK$96,000
Max. Loan HK$2,000,000 (or 18x monthly salary)
Handling Fee None
Loan Tenor 1-5 years

Standard Chartered is great for borrowers looking to pay off their tax loans over a longer period of time. The bank's tax loan offers a duration of up to 5 years, with monthly flat rates ranging from 0.17%–0.23% depending on the size of the loan. Standard Chartered also charges no annual fee and offers a cash coupon of up to HK$2,000 for successfully drawing down on a loan. It's worth noting that the loan does have an annual income requirement of HK$96,000 per year, which is on the high end of income requirement for tax loans.

Citi Tax Season Loan

Great for those looking for long-term loans of more than HK$1.5mn

Promotion Up to HK$6k in cash coupons for select customers (up to HK$4.5k for other customers)
Min. Annual Salary HK$72,000
Max. Loan HK$2,000,000 (or 12x monthly salary)
Handling Fee None
Loan Tenor 6 months-5 years

In addition to having one of the most generous promotions available, the Citi Tax Season Loan also offers extra long durations, making it a great option for borrowers looking to pay off their tax loan over more than 2 years. Citibank allows borrowers to pay off loans over up to 5 years, much longer than the usual 1-2 year limit. Consumers can also pay monthly flat rates as low as 0.090%. although this advertised rate is for loans of HK$1,500,000 or more.

How to Choose a Tax Loan

Tax loans should be used as a way to quickly get cash to address a financial need, like paying your taxes. Banks offer these promotionally low rates during the tax season (October-April), making it less expensive to take on debt. However, if you get in the habit of continuously using tax loans to pay for annual expenses, you may find yourself trapped in a cycle of debt.

Consumers can use tax loans for some other purpose, and while the tax season is an opportunity to take on a personal loan, we would not recommend taking on additional debt unless absolutely necessary.

Consumers may want to consider saving money to pay for significant expenses instead or regularly taking out a tax loan or relying on an annual bonus to cover their taxes. In fact, the Inland Revenue Department even offers Tax Reserve Credits, which can be bought in denominations of HK$300 and above in multiples of HK$50. These credits earn interest at a rate of 0.2% per annum (for up to 3 years), but only when they are used to pay the holder's tax.

Tax Reserve Credits vs. Tax Loans

Tax Reserve CreditsTax Loans
Minimum AmountHK$300HK$5,000-HK$10,000
Purchasing Methods
  • Online
  • Phone
  • In-Person
  • Bank Autopay
  • Bank ATM
  • By Post
  • Online
  • Phone
  • In-Person
Cost/BenefitEarn 0.2% Interest Per AnnumPay 1.78%-11.78% Interest Per Annum

Hong Kong has a progressive marginal tax system based on how much money you earn, meaning people with higher incomes pay a higher proportion of taxes. Consumers must pay taxes in advance of each 12 month period on any of their net chargeable income (assessable income after deductions and allowances). Very high earners (income of HK$2,022,000 and above) will be charged either a flat standard rate of 15% or the usual progressive tax rate shown below (whichever is lower).

Progressive Marginal Tax Rates

Net Chargeable IncomeRateTotal Chargeable Income
On the First HK$50,0002%HK$50,000
On the Next HK$50,0006%HK$100,000
On the Next HK$50,00010%HK$150,000
On the Next HK$50,00014%HK$200,000
Any Additional Income17%Amount Over HK$200,000
Percentages taken from the Internal Revenue Department. Marginal rates are as of 2018/2019 onwards, and standard rate is from 2014/2015 onwards. All rates are until superseded by the Internal Revenue Department

Every tax payer in Hong Kong is given a basic allowance of HK$132,000, which will not be treated as chargeable income. If you earn less than HK$132,000 per year, you won't owe any salary taxes. Other allowances can be granted for personal disabilities, care of dependents and more.

Thanks to the basic allowance, a person earning the average annual income with no dependents should expect to pay just HK$2,320 in salary taxes, less than half the HK$5,000 minimum amount required by many tax loans.

Estimated Tax Payable Based on Average Annual Income

Single Earner, No ChildrenSingle Earner, 1 Dependent Brother/SisterSingle Earner, 1 Child
Average Annual IncomeHK$204,000HK$204,000HK$204,000
Basic AllowanceHK$132,000HK$132,000HK$132,000
Additional AllowancesHK$0HK$37,500HK$120,000
Net Chargeable IncomeHK$72,000HK$34,500HK$0
Taxes PayableHK$2,320HK$690HK$0
Average income per person taken from the Census and Statistics Department's March 2020 Quarterly Report of Wage and Payroll Statistics. Tax payable estimates taken from the Internal Revenue Department

Frequently Asked Questions

Functionally, tax loans are very similar to personal loans. However, tax loans are only offered as limited promotions during the tax season (October-April) and typically have tenures between 12 and 24 months. Despite their name, most tax loans have no restrictions on what the loan is used for.

Tax loans work by providing borrowers with cash, which they then must pay off (with interest and handling fees) over the course of a series of monthly instalments. Usually, lenders limit this to 24 monthly payments or less, although some offer durations of up to 60 months. In general, interest rates will be lower for shorter duration loans than longer ones, and for larger loan amounts than smaller ones. Some lenders also offer promotional rebates for borrowers taking out larger loans, as well as special low rates for select customers.

Tax loans are a great opportunity for consumers to take out a personal loan with seasonally low interest rates. Typically, these loans have durations of just 1-2 years, meaning that you can pay off your loan quickly and not worry about. While their primary purpose is to offer consumers a quick cash infusion to pay their salary taxes, most tax loans have no express limit on their use.

You can easily apply for tax loans online on bank websites during the promotional period, or by submitting a completed application form to a local branch. Most lenders will require that borrowers be a Hong Kong resident, at least 18 years of age, and earn a minimum income between HK$5,000 and HK$10,000. To apply, you should be able to provide the following documents.

  • Hong Kong Identity Card
  • Tax Demand Note
  • Income Proof
  • Residential Address Proof

You should make your borrowing decision based off of the total cost of each tax loan at your preferred amount and duration. However, some banks offer special low rates for their existing or select customers. It may be worth checking if a bank you already do business with is offering these promotional rates.

Methodology

To find the cheapest tax loan in Hong Kong, we first collected pertinent interest rate and promotions information from the top banks in Hong Kong.

Lenders Included in ValueChampion's Study

AEONCCBCMBFubonNCB
BOCOMChiyuCNCBIHang SengPublic Bank
BEAChong HingDah SingHSBCStd. Chartered
BOCCitiDBSICBCUA

We then calculated the total cost to each consumer for a loan given different available loan amounts and tenures. This calculation includes any promotional rebates a borrower would qualify, as well as handling fees a lender may charge. We assumed that each payment is made on time, avoiding any late or prepayment fees.

In the end, the total cost of each tax loan depends on how much a consumer is borrowing, and for how long. By comparing the costs of each loan under different circumstances, we were able to identify the cheapest tax loan based on a borrower's desired tenure and loan amount.

Jacob Weiss

Jacob is a Junior Research Analyst at ValueChampion, focusing on credit cards and other consumer financial products. Previously, he covered hedge funds and long only products for Cambridge Associates. He holds a B.S. in Finance from the University of Maryland and has passed Level 1 of the CFA exam.