Dependent Parent Allowance: The Sibling Conversation Most Families Never Have
Last updated 12 June 2026 · 6-minute read · Reviewed against IRD published rates for YA 2025/26 on 12 June 2026.
Only one of you can claim the dependent parent allowance (供養父母免稅額) for your dad. Not you and your brother. Not split down the middle. One taxpayer, per parent, per year. The IRD leaves it to the family to decide who — and if you don’t decide, one of two quiet failures happens: nobody claims and the allowance simply evaporates, or you both claim and, a while later, somebody gets a letter. Both are fixable with one short conversation. This guide is that conversation, plus the note that puts it in writing.
What the allowance actually is (and what it isn’t)
The dependent parent allowance is a flat amount subtracted from your income for each parent or grandparent you support. No receipts — the amount depends only on their age and whether they live with you.
| Parent’s age | Living with you all year | Not living with you |
|---|---|---|
| 60 or above | HK$100,000 | HK$50,000 |
| 55 to 59 | HK$50,000 | HK$25,000 |
The “not living with you” rates require that you contributed at least HK$12,000 towards that parent’s maintenance during the year. And one distinction matters more than any other: this allowance is not the same thing as the elderly residential care expenses deduction — a separate claim for actual care-home fees, capped at HK$100,000 per parent. A single parent can attract one or the other in a year, never both. Which one to pick is exactly the sandwich case below.
The sibling rule, in one line
One taxpayer per parent per year — siblings must agree who it is. The IRD does not referee, does not apportion, and does not award it to whoever filed first. If two of you claim the same parent and you can’t agree afterwards, the allowance is simply not granted to anyone. That’s the entire rule, and it’s why the five-minute conversation is worth having before anyone files.
The “residing with” rule, in one line
The doubled rate is for a parent who lives with you continuously throughout the year — actually sharing the home, not visiting at weekends. If that’s genuinely your arrangement, you claim the higher figure; if it’s partial or seasonal, claim the “not residing” rate and sleep well during any review.
The sandwich case: Mum lives with us, Dad’s in a home
Take Daniel, 45. His 72-year-old mother lives with his family. His 75-year-old father is in a residential care home, and Daniel pays the fees. His brother also helps the family out. Untangled, it looks like this:
| Parent | The right claim | Tax saved (up to) |
|---|---|---|
| Mum, 72, lives with Daniel | Dependent parent allowance — HK$100,000, residing rate | HK$17,000 |
| Dad, 75, in a care home | Elderly residential care deduction — fees up to HK$100,000, claimed by whoever pays them | HK$17,000 |
Note what the deduction choice for Dad means for the brother: once anyone claims the residential care deduction for Dad, nobody can claim Dad’s dependent parent allowance that year. If the brother had claimed Dad’s “not residing” allowance of HK$50,000 instead, the family would have saved roughly HK$8,500 — about half as much. Same parents, same money spent, HK$8,500 of difference purely in who claims what. That’s the coordination dividend.
The consent note: what to send your siblings
Nothing formal is filed between siblings — the IRD just expects you to be consistent. A two-line message, kept in the chat history, is all the paper trail a family needs. Copy, edit, send before anyone files:
“Hi [name] — for the 2025/26 tax year, I’ll claim the dependent parent allowance for Mum, and you claim Dad, as discussed. Reply ‘agreed’ so we both have it in writing. We’ll re-confirm next year.”
「[名字]：2025/26 課稅年度，媽媽嘅供養父母免稅額由我申索，爸爸嘅由你申索。回覆「同意」留個書面紀錄，下年再確認一次。」
If a care-home deduction is in the mix, add one line saying who pays the fees and that no one will claim that parent’s allowance. Thirty seconds now; a very dull, very short reply to the IRD later, should anyone ever ask.
What happens if you both claim anyway
The IRD cross-checks dependants across returns, so duplicate claims surface — sometimes in the same season, sometimes a couple of years on. What follows is administrative, not dramatic: both claimants get a letter asking the family to confirm who should have the allowance, and assessments are adjusted once you answer. The genuinely avoidable harm is the family that can’t agree even then — in which case the allowance is withdrawn from everyone — and the sibling relationship that now has a tax dispute in it. The note above costs less.
The three-question check for this filing season
- List each parent and grandparent who is 55 or older, with their age and living arrangement as at this year.
- For any parent in residential care, decide deduction or allowance — usually the deduction, claimed by whoever pays the fees — and tell the other siblings which it is.
- Assign every other parent to exactly one sibling, send the note, and keep the “agreed” reply.
For where these figures sit in the bigger picture — bands, deadlines, every other allowance — the full 2025/26 guide is the reference. If you and your spouse are also weighing joint versus separate assessment, parent claims travel with whoever makes them — the couples guide covers that decision.
Common questions
Can my brother and I split the allowance for one parent?
No. The dependent parent allowance is one claim, by one taxpayer, per parent, per year — no halves. Families often rotate instead: one sibling claims Dad this year, the other next year. Any private arrangement about sharing the saving is yours to make; the IRD only cares that exactly one of you claims.
Can we claim both the allowance and the residential care deduction for the same parent?
No. For any one parent in any one year, the family gets either the dependent parent allowance or the elderly residential care expenses deduction — never both. If care-home fees are being paid, the deduction (up to HK$100,000 of actual fees) is usually the more valuable of the two.
What does “residing with you” actually require?
For the full HK$100,000 rate, your parent needs to live with you continuously throughout the year of assessment — genuinely sharing the home, not weekends and holidays. Otherwise, the claim is the HK$50,000 “not residing” rate, which requires you to have contributed at least HK$12,000 towards their maintenance in the year.
Do we have to re-agree every year?
Yes. Each year of assessment stands alone, and last year’s claim doesn’t reserve this year’s. Circumstances also move — a parent turns 60, moves in, or moves into a care home — so a one-line check between siblings each filing season keeps everyone aligned.