Hong Kong's Inland Revenue Department allows a tax deduction for qualifying elderly residential care expenses paid for a dependent parent or grandparent. This can reduce your salaries tax liability, but the rules on who qualifies, what expenses count, and how much you can deduct are specific. This guide explains the structure — but always verify the current figures with the IRD, as deduction limits are revised periodically.
Who can claim
The deduction is available to a taxpayer who pays qualifying residential care expenses for a dependent parent or grandparent. 'Dependent' has a specific definition under the Inland Revenue Ordinance, generally requiring the relative to be aged 60 or above (or 55–59 under the 'specified' definition), and to have resided with the taxpayer or been financially supported by them. The qualifying relative must meet the dependent-parent or dependent-grandparent criteria, which are separate from (but interact with) the dependent parent / grandparent allowance.
Qualifying expenses
Qualifying expenses are fees paid to a licensed residential care home for the elderly, for the care of the dependent relative. The home must be licensed under the Residential Care Homes (Elderly Persons) Ordinance (Cap. 459) — which is one reason our directory surfaces the LORCHE licence number, so you can confirm the home is licensed. Expenses that may qualify include the basic monthly fee and care-related charges; verify with IRD which specific charges in the fee-charging table are deductible.
Maximum deduction
The deduction is capped per dependent per year of assessment. The cap has been increased over the years; confirm the current maximum for your year of assessment on the IRD website. The deduction is per dependent, so a taxpayer supporting two qualifying parents can claim for each separately, subject to each cap. The deduction is separate from the dependent parent / grandparent allowance — you may be entitled to both, but they serve different purposes and have different rules.
Records to keep
Keep receipts from the care home showing the amounts paid and the period covered, and keep the home's licence number on file. The IRD may request supporting documents. If multiple family members share the cost, agree who claims the deduction to avoid duplicate claims. Our directory shows each home's LORCHE number on its detail page, which helps you document that the home is licensed for deduction purposes.
Browse licensed care homesFrequently asked questions
Can I claim tax deduction for my parent's elderly home fees?
Possibly, if your parent qualifies as a dependent parent under the Inland Revenue Ordinance (generally aged 60+, or 55–59 under the specified definition), the home is licensed under Cap. 459, and the expenses are qualifying residential care expenses. The deduction is capped per dependent per year of assessment. The deduction is separate from the dependent parent allowance — you may be entitled to both. Confirm the current deduction limit and eligibility for your year of assessment on the IRD website (ird.gov.hk) or with a tax professional, as the rules are revised periodically.