Hong Kong Salaries Tax: Which Exchange Rate Converts Foreign-Currency Income and Expenses

Salaries tax is assessed in Hong Kong dollars. If your employer pays you in US dollars, sterling or renminbi, or you paid a deductible expense in another currency, the tax return needs the Hong Kong dollar equivalent. The Inland Revenue Department (IRD) says which side of the rate to use and gives a table of averages for the year of assessment.

The rule: buying rate for income, selling rate for expenses

The IRD states that salaries tax is calculated in Hong Kong dollars and that a taxpayer who receives chargeable income or incurs a deductible expense in foreign currency has to report the equivalent amount in Hong Kong dollars. It then fixes the direction:

• Income received in foreign currency: converted at the buying rate, the rate at which a bank buys the foreign currency from you.
• Deductible expenses paid in foreign currency: converted at the selling rate, the rate at which a bank sells it to you.

The difference matters. On 11 November 2026 the official Hong Kong Association of Banks (HKAB) table showed US dollars at 7.8145 buying (telegraphic transfer) and 7.8750 selling. On USD 100,000 of income that is HKD 6,050 between the two sides.

The IRD average rate tables

The IRD posts a page of average exchange rates for each year of assessment, with two tables: average buying rates and average selling rates. Three details are easy to miss:

• The averages are cumulative. Each row is the average from 1 April to the last day of that month, not the average of the single month. The March row is the average for the whole year of assessment.
• Eight currencies are covered: US dollar, sterling, Canadian dollar, Swiss franc, Japanese yen (per 100), Australian dollar, euro and renminbi. The renminbi line is quoted against HK$100, the reverse of the others.
• The table is updated monthly during the year. On 11 November 2026 the 2026/27 page ran from April to October 2026, with the US dollar average buying rate at 7.8110.

Pages for earlier years of assessment are linked from the same IRD index. The IRD pages do not say where the underlying daily figures come from.

When you need a dated rate, not an average

An average suits income that arrives evenly through the year. A single large payment, such as a bonus or a share award, is better supported by the rate on the day it was received, and currencies outside the IRD's eight need another source entirely. Two official Hong Kong series cover that:

• HKAB daily table. Selling and telegraphic transfer buying rates for 22 currencies, set at the opening of business each day. This matches the IRD's buying and selling split directly.
• HKMA daily figures. One rate per currency for 17 currencies, daily back to 1981, released monthly with the Monthly Statistical Bulletin.

# today's official HKAB table (selling, TT buying, middle)
curl "https://allratestoday.com/api/open/central-bank/hkab"

# the HKAB table for the day a bonus was paid
curl "https://allratestoday.com/api/v1/central-bank/hkab/2026-11-05" \
  -H "Authorization: Bearer YOUR_API_KEY"

# HKMA daily figures for a past year, one currency
curl "https://allratestoday.com/api/v1/central-bank/hkma/history?symbol=USD&from=2025-04-01&to=2026-03-31" \
  -H "Authorization: Bearer YOUR_API_KEY"

Dated tables and history are on paid plans. Each response carries the table's own date, so a working paper can show which publication a figure came from.

A worked example

An employee is paid USD 8,000 a month for the whole year of assessment and pays USD 1,200 of deductible professional fees.

• Income: USD 96,000 at the IRD average buying rate for the year (the March row of the table).
• Expense: USD 1,200 at the IRD average selling rate for the year.
• A one-off USD 30,000 bonus paid on one date can be converted at that day's buying rate, with the source noted.

Whatever source you pick, use it the same way from year to year and keep the figures with your return.

This guide describes the rules as the Inland Revenue Department and the other bodies publish them, read on 11 November 2026. It is not tax advice; confirm the treatment for your facts with your accountant.

FAQ

Which exchange rate does the IRD use for salaries tax?

The IRD requires foreign-currency income and expenses to be reported in Hong Kong dollars. Income is converted at the buying rate and deductible expenses at the selling rate. The IRD posts average buying and selling rates for each year of assessment.

Are the IRD average exchange rates monthly averages?

No. Each row is the cumulative average from 1 April to the last day of that month. The March row is the average for the full year of assessment.

Which currencies are in the IRD average rate table?

Eight: US dollar, sterling, Canadian dollar, Swiss franc, Japanese yen, Australian dollar, euro and renminbi.

Where can I get a Hong Kong buying or selling rate for one date?

The Hong Kong Association of Banks sets selling and telegraphic transfer buying rates for 22 currencies each day. The AllRatesToday API returns the HKAB table for today and, on paid plans, for a past date.