Last verified：2026-09-04｜WeProperty Editorial Team · Editorial and author information
Short answer：Rateable value is the estimated annual open-market rent of a property at the designated valuation reference date, assuming it was vacant and to let. It is not the sale price, a bank valuation or the rent actually received. For 2026/27, the reference date is 1 October 2025 and the values take effect on 1 April 2026.
How does the Rating and Valuation Department assess it?
The department looks at open-market rents for similar properties around the valuation date, with adjustments for size, location, facilities, finish and management. All property types use the same basic valuation approach and are revalued annually.
Rates percentage charges for 2026/27
| Property or band | Charge |
|---|---|
| Non-domestic tenements | 5% |
| First HK$550,000 of domestic rateable value | 5% |
| Next HK$250,000 | 8% |
| Remainder | 12% |
Worked example: domestic rateable value of HK$900,000
The first HK$550,000 at 5% is HK$27,500; the next HK$250,000 at 8% is HK$20,000; and the remaining HK$100,000 at 12% is HK$12,000. Total annual rates are HK$59,500 before any applicable concession or adjustment. Verify the result with the department's calculator.
Rateable value, rates and Government rent
- Rateable value: the valuation base.
- Rates: the tax calculated using rateable value and the applicable charge.
- Government rent: a separate charge whose application and calculation depend on the lease and law.
What if the value appears wrong?
After a general revaluation, a proposal on Form R20A may be filed during the inspection period, generally no later than 31 May. An interim valuation or correction notice uses a separate 28-day objection route. Payment is not suspended while a proposal or objection is pending.
Add ownership costs with the rental yield calculator and consult the buying handbook. For a market-value estimate, use the property valuation service.
Frequently asked questions
Is rateable value the same as a property's sale price?
No. It is the estimated annual open-market rent at the designated date, not a transaction price or bank valuation.
What is the reference date for 2026/27?
The Rating and Valuation Department states 1 October 2025, with the new values effective from 1 April 2026.
Does the owner or occupier pay rates?
Both may be liable in law. The agreement usually allocates payment; without an agreement to the contrary, the department says liability generally rests with the occupier.
Can payment stop while an objection is considered?
No. Rates and Government rent remain payable as demanded, with an adjustment later if the assessment changes.
Official and product sources
- Rating and Valuation Department: Rates and rateable value
- Rating and Valuation Department: Rates and Government Rent Calculator
- Hong Kong e-Legislation: Rating Ordinance (Cap. 116)
Revision note：Updated against first-party sources available on 4 September 2026; unsupported anecdotes, fixed market figures and absolute claims were removed.
Disclaimer：General information only; not tax, valuation or legal advice. The Rating and Valuation Department's demand controls the amount due.
Rateable value in Chinese: 應課差餉租值
Rateable value = 應課差餉租值, an estimated annual rental value at the prescribed valuation basis and date. It is not the sale price, bank valuation or necessarily the rent actually collected. Rates (差餉) and government rent (地租) are separate terms.
Check the assessment year, property and rateable value, then the applicable rates, bands, concessions and quarterly billing. Progressive domestic rates cannot always be calculated as a flat 5%. Government rent must be checked separately.
RVD rates and rateable value · Property tax calculator (Chinese); property tax is a different charge.
This section checked: 2026-10-05