The Tax Cuts and Jobs Act, a new U.S. tax reform that took effect for the 2018 tax year, was signed into law in December 2017. The American tax system saw considerable modifications as a result of this reform, including adjustments to tax rates, deductions, and credits. As a result, the modifications may have distinct effects on American tax for US residents living Hong Kong.

The new tax law's increase in the standard deduction is one of its most important adjustments. By using the standard deduction rather than itemising their deductions, more people will be able to reduce their tax burden.