Minimizing Your U.S. Tax Liability

At a glance

Learn about minimizing your U.S. tax liability while living as a U.S. Citizen in Hong Kong. You’ll find out how to maximize your Expat tax benefits with H&R Block.

Did you know your tax benefit allowed for housing in Hong Kong is among the largest allowed under U.S. tax code? Check out how this may work to your advantage when filing your U.S. taxes.

As an expat living in Hong Kong, you no doubt are familiar with the low tax rates imposed by the Hong Kong government. Hong Kong imposes no capital gains tax or social security tax, with a maximum tax rate of 17 percent. Unlike the U.S., Hong Kong’s tax system is territorial, meaning your worldwide income is not necessarily subject to Hong Kong tax. While this is welcome news for many expats, this can create a challenge when minimizing your U.S. tax liability; Hong Kong’s low tax rates mean that you will likely need to rely on the foreign earned income exclusion and foreign housing exclusion or deduction to minimize or eliminate your U.S. tax liability.

Fortunately, the tax benefit allowed for residents of Hong Kong for their housing is among the largest allowed under the U.S. tax code. With that in mind, it will be important to track your housing expenses for each calendar tax year. For this purpose, housing expenses include your rent, utilities (excluding phone charges), residential parking, nonrefundable fees incurred for your lease, and the cost of renting furniture. Please note that you would not be able to claim a foreign housing benefit for mortgage payments on your home.

Was this article helpful?

See what expats have to say about their experience with us.

Kristi Heinz

H&R Block Expat Tax has always been fast, efficient and answers my questions. For 10 years I filed everything myself and never received a refund. Now I get a big refund every year! Wish I had known sooner. I highly recommend HRB Expat Tax.

Arkadiusz Malinowski

H&R Block U.S. Expat Tax Services does a really great job! Fast and reliable. Tax Organizer was very easy to use. And what I really like most is very quick and precise answers whenever you have a question. Thank you!

Ayesha Sultan

I live in Kenya now and run my own online digital marketing business. Using this service has helped me save tons of time and energy on my taxes. I am also really relieved that they will help if I need it during audits. It really makes living abroad and doing taxes a million times better.

Jennifer Thompson

I have been using H&R block for a few years now. I live abroad, but don't make a lot of money. Filing with H&R block is as painless as doing taxes gets and my Advisor is wonderful and answers all my questions.

Alison Watts

Expat taxes made easy. I had a great experience this year - I used HR Block last year and was very impressed with the efficiency and accuracy and professionalism throughout the whole process.

Image for No one offers more ways to get tax help than H&R Block.

No one offers more ways to get tax help than H&R Block.

Easy online filing designed for expats. Experienced experts if you need them. Get your taxes done in the way that’s right
for you.