VHIS Tax Deduction 2026 Update | Deduction Limits, Calculation Methods, Tax Filing Process & Family Claim Guide
Every year during tax season, many Hong Kong taxpayers look for legitimate ways to reduce their tax burden. Beyond basic personal and dependent allowances, deductions under the Voluntary Health Insurance Scheme (VHIS) have become one of the most popular tax relief options in recent years.
A VHIS policy not only offers medical protection but also allows eligible premiums to be claimed as tax deductions, making it a practical solution that combines healthcare coverage with effective tax planning.
Based on the 2025/26 year of assessment (2026 update), this guide explains how VHIS tax deductions work, including deduction limits, calculation methods, eligible dependants, and the tax filing process, so you can understand the key points at a glance.
What Is the Voluntary Health Insurance Scheme (VHIS)?
The Voluntary Health Insurance Scheme (VHIS) was launched in April 2019 by Hong Kong’s Health Bureau to standardise individual medical insurance policies.
Only medical insurance products that meet the government’s prescribed standards and receive official approval are classified as VHIS plans. Only these approved plans qualify for tax deductions.
Key Features of VHIS
In general, VHIS-certified plans offer the following features (actual coverage is subject to individual policy terms):
- Annual tax-deductible premium cap of HK$8,000 per insured person
- No lifetime benefit limit
- Guaranteed renewal up to a specified age (commonly up to age 100)
- Coverage for unknown pre-existing conditions and day surgeries
Many insurers offer VHIS-certified plans. When selecting a policy, consumers should compare coverage scope, premium levels, and deductible arrangements.
👉Learn moreHow Does the VHIS Tax Deduction Work?
A common misconception is that “VHIS provides an HK$8,000 tax deduction”, meaning tax payable is reduced by HK$8,000. This is not correct.
Key Concept
- HK$8,000 refers to the maximum deductible premium per insured person per year
- Actual tax savings depend on the taxpayer’s applicable tax rate
Calculation Formula
Eligible VHIS premiums × Applicable tax rate = Tax savings
What Is the VHIS Tax Deduction Limit?
For the 2025/26 year of assessment, assuming the highest salaries tax rate of 17%:
Per insured person
- Eligible premium cap: HK$8,000
- Maximum annual tax saving: HK$1,360
Important Notes
- Actual tax rates vary according to income level
- Lower tax rates result in lower tax savings
Who Can Claim VHIS Tax Deductions?
1. The Taxpayer
Taxpayers may claim deductions for eligible VHIS premiums paid for their own policy.
2. Eligible Dependants
Taxpayers may also claim deductions for VHIS premiums paid for the following eligible dependants:
- Spouse
- Children
- Parents
- Grandparents
- Siblings
⚠️ Important
Dependants must meet the definitions under the Inland Revenue Ordinance. Final eligibility is subject to assessment by the Inland Revenue Department (IRD).
Is There a Limit on the Number of Insured Persons?
- ✅ No limit on the number of insured persons
- ✅ Each eligible insured person is entitled to a separate HK$8,000 annual deduction cap
VHIS Tax Deductions for Different Family Situations
The following examples are for general reference only. Actual arrangements depend on individual tax circumstances:
- Single individuals: May insure themselves and claim the deduction
- Married couples: May consider claiming under the spouse with the higher tax rate
- Supporting parents or grandparents: Can enjoy both medical protection and tax relief
- High-income earners with multiple dependants: Total tax savings may be higher depending on the number of insured persons
For official guidance, please visit the VHIS website
VHIS Tax Deduction Calculation Examples
| Plan A | Plan B | |
| Annual Premium | HK$8,000 | HK$4,000 |
| Eligible Premium | HK$8,000 | HK$4,000 |
| Tax Saving (17%) | HK$1,360 | HK$680 |
| Net Annual Cost | HK$6,640 | HK$3,320 |
Examples are for illustration only. Actual tax savings depend on the taxpayer’s income and selected plan.
👉 Explore VHIS-eligible plans
How to Claim VHIS Tax Deduction
Filing via eTAX
- Log in to eTAX
- Open the Salaries Tax Return
- Under Allowable Deductions, select “Qualifying premiums paid under the Voluntary Health Insurance Scheme”
- Enter the eligible premiums paid during the year
Filing via Paper Tax Return
- Tick “Qualifying premiums paid under VHIS”
- Enter the eligible premium amount paid for the year
Supporting Documents
- Documents are not required at the time of filing
- However, taxpayers must keep the following records for at least 6 years:
- Premium receipts
- Annual policy statements
- Payment records
Important Points to Note
- Only premiums actually paid during the year can be claimed
- The deduction cap is HK$8,000 per insured person
- Married couples should consider who should claim under separate assessments
- If income is below the taxable threshold, tax benefits may be limited
Frequently Asked Questions (FAQ)
Q: Are general medical insurance premiums tax-deductible?
A: No. Only government-approved VHIS-certified policies a qualify for tax deductions.
Q: What is the maximum VHIS tax deduction?
A: Up to HK$8,000 in eligible premiums per insured person per year, with actual savings depending on the applicable tax rate.
Q: Can I claim deductions for VHIS policies purchased for family members?
A: Yes, provided the family members qualify as eligible dependants under the Inland Revenue Ordinance.
About the Author
Bupa Editorial Team
This article is prepared by Bupa’s professional editorial team based on current VHIS and tax deduction arrangements in Hong Kong, with reference to publicly available government information and Bupa health insurance materials.
Disclaimer
This article is for general information and reference only and does not constitute insurance, medical, investment, tax, or legal advice. VHIS tax deduction arrangements and examples are based on publicly available information at the time of writing. Actual tax treatment is subject to the latest requirements of the Inland Revenue Department and applicable laws. Policy coverage, terms, and premiums are subject to the relevant policy provisions and final approval by the insurer. Bupa makes no representation as to the completeness or accuracy of this content and accepts no liability for any loss arising from reliance on this information. Professional advice should be sought where appropriate.
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