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Policy Address 2026 | HK$20,000 for first child, HK$30,000 for second and beyond: Tax allowance raised to HK$160,000

Hong Kong
2026.09.16 14:09
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Chief Executive John Lee announced the first five-year plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026–2030)today (Sept. 16), and delivered the new Policy Address. To further promote a childbirth-friendly environment, the government will roll out 11 additional "combination" measures.

The specific measures are as follows:

(i) The HK$20,000, newborn baby bonus, which is due to expire on Oct. 24 this year, will be extended for three years.

(ii) To encourage families to have more than one child, the newborn baby bonus for the second or subsequent child born today or after will be increased from HK$20,000 to HK$30,000 for three years.

(iii) If a taxpayer's second child and subsequent children are born today or after, the tax allowance for them will be increased from HK$140,000 to HK$160,000, and the allowance may be claimed until they reach the age of 25 following established procedures. This will take effect from the year of assessment 2026/27.

(iv) The additional allowance for the first two years following childbirth for the aforesaid second and subsequent child will also be increased, from HK$140,000 to HK$160,000, effective from the year of assessment 2026/27.

(v) Eligible families (whose children are born today or after in Hong Kong, with either parent a Hong Kong permanent resident), having purchased a residential property from one year before to two years after the childbirth, are entitled to a stamp duty waiver capped at HK$20,000. The concession will take effect upon passage of the amendment bill.

(vi) Starting from the next Home Ownership Scheme sale exercise, the maximum mortgage loan-to-value ratio for White Form family applicants with newborns will be raised to 95%, to ease their down-payment burden.

(vii) The HA will increase the service quota for in-vitro fertilisation in phases over the next three years, by 300 treatment cycles to 1,900 treatment cycles per year.

(viii) The Primary Healthcare Commission (PHC Commission) will gradually extend its free pre-pregnancy, antenatal and postnatal classes to all District Health Centres (DHCs) and DHC Expresses. The Family Planning Association of Hong Kong will launch publicity this year to promote healthy fertility.

(ix) Following last year's announcement to establish 15 new aided standalone CCCs, we will set up three more aided, standalone CCCs. These are expected to provide about 1,800 additional day-care service places by the end of 2030.

(x) The School-based After School Care Service Scheme will be regularised, starting from the 2027/28 school year and no quota will be imposed to continuously support families of primary school students with caretaking needs.

(xi) We will strengthen professional support for the After School Care Programme for Pre-primary Children, providing escort services and increasing service publicity.

Related News:

Policy Address 2026 | Transport and travel: New conveniences coming

Policy Address 2026 | Sixth-term government marks four years in office: HK's economy turns from negative growth to positive growth of 3.6%

Tag:·John Lee· five-year plan· Policy Address· childbirth-friendly· tax allowance

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