China Individual Income Tax
Both residents and non-residents are subject to pay individual income tax (IIT) in China based on yearly earnings. Since the new implemented policy, the individual income tax is divided in tax brackets progressively starting from 3% and capping at a maximum of 45%.
The first 5000 yuan ($770) of the income is tax-free, given as tax allowance to all tax payers. For incomes of less than 5000 yuan per month, no taxes are paid.
China Tax Brackets
|
Monthly taxable income (CNY) |
Tax rate (%) |
Quick deduction
(CNY) |
|
0 to 3,000 |
3 |
0 |
|
Over 3,000 to 12,000 |
10 |
210 |
|
Over 12,000 to 25,000 |
20 |
1,410 |
|
Over 25,000 to 35,000 |
25 |
2,660 |
|
Over 35,000 to 55,000 |
30 |
4,410 |
|
Over 55,000 to 80,000 |
35 |
7,160 |
|
Over 80,000 |
45 |
15,160 |
Tax reductions
Please note, your taxable income may be entitled to further reductions including; pension, medical insurance, unemployment insurance, housing loan, housing rent, children’s education, caring for elders etc. It is advisable to contact your HR and discuss the insurance package provided by the company.
Wondering how much income tax you’ll end up paying in China? Complete the fields to calculate your net income and individual income tax.
