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Progressive Rating System for Domestic Tenements

The Financial Secretary proposed in the 2024-25 Budget Speech to implement a progressive rating system for domestic tenements starting from the January to March 2025 quarter:

  • For domestic tenements with rateable value of $550,000 or below (about 98% of private domestic tenements), the rates percentage charge shall remain at 5%.
  • For domestic tenements with rateable value over $550,000, rates will be calculated according to the following progressive rates charge scale*:

    Rateable value of domestic tenements Rates percentage charge
    First $550,000 5%
    Next $250,000 8%
    Remainder 12%
    * Implementation of the progressive rating system is subject to passage of the relevant legislation

The 2024-25 rateable value of a tenement after revaluation is shown on the Rates and Government rent demand for the April to June 2024 quarter.

For domestic tenements subject to progressive rates, the ratepayers concerned will be informed in April 2024 that the tenement will be subject to payment of progressive rates in January to March 2025 quarter. The amount of progressive rates payable for that quarter will be shown on the demand concerned. Whether progressive rates should be payable for subsequent years of assessment will depend on the rateable value for the relevant year(s).

You may also use the “Rates and Government Rent Calculator” to estimate the amount of rates and Government rent payable.