If you are paying a parent’s care-home bill, collect the receipts before filing your return and agree with siblings who will make the claim. The two common mistakes are treating the deduction as a cash rebate and claiming the same parent twice.
Use the cap for the year of payment
| Year of assessment | Maximum per eligible parent/grandparent |
|---|---|
| 2025/26: 1 April 2025–31 March 2026 | HK$100,000 |
| 2026/27 onwards | HK$110,000 |
The increase is confirmed in IRD’s 2026–27 tax-measures FAQ; the legislation passed in May 2026. You claim qualifying expenses actually paid, subject to the relevant cap. Do not put the higher cap into a 2025/26 return simply because you are completing it in 2026.
Check the qualifying conditions
- The payment is by you or your spouse for your or your spouse’s parent or grandparent. The person must be 60 or over at some point in the year, or meet the specified Disability Allowance eligibility condition if younger. See IRD’s allowance and care-expense rules.
- The care must be in a qualifying home in Hong Kong. IRD lists the relevant licensed/exempt-home categories; a Mainland home does not meet the Hong Kong-location condition. See IRD’s explanation.
- Keep the home’s invoices and proof of payment, with the resident’s name and covered period. Separate care fees from refundable deposits and unrelated spending; ask IRD about uncertain items.
Only one claimant for the same relative
IRD’s FAQ says eligible family members must agree who claims; if no agreement is reached, no deduction is allowed. It also confirms that a person who has not paid the residential-care expenses cannot claim them merely because they pay other living costs while CSSA meets the care-home fee. Do not include government-funded amounts as your own payment.
You cannot obtain both the dependent parent/grandparent allowance and this deduction for the same person in the same year. Compare the eligible alternatives using your actual tax computation; the larger headline figure is not a cheque from the government.
What the saving looks like
Illustration: if an additional HK$10,000 deduction reduces income wholly taxed at a 17% marginal rate, the tax saving is HK$1,700, not HK$10,000. Your actual result depends on income, allowances, other deductions and the applicable tax calculation. Budget to pay the home in full when its bill falls due.