China uses a progressive IIT (Individual Income Tax) system with rates from 3% to 45% across 7 brackets, plus mandatory social insurance (10.5% employee contributions for pension, medical and unemployment, plus a housing fund of 5-12% depending on city and employer). The standard deduction is ¥5,000/month (¥60,000/year). A ¥300,000 earner (~$41,000 USD at about ¥7.3 per dollar) in Shanghai pays roughly ¥24,800 income tax (~8%) plus ¥31,500 social insurance before any housing fund (single resident employee, wages only, no special additional deductions claimed). China offers generous additional deductions: children's education (¥24,000/child/year), elderly parent care (up to ¥36,000/year), housing loan interest (¥12,000/year), and continuing education. Annual bonuses can be taxed separately at favorable rates until 2027—critical for year-end planning. Monthly withholding uses cumulative method (累计预扣法); annual reconciliation deadline is June 30. Expat tax exemptions largely ended in 2024. Use our calculator to estimate your Chinese tax liability.
This hub links to every China tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.
Detailed China tax guides on CountryTaxCalc:
China's income tax uses 7 tax brackets from 3% to 45%. Use the calculator to estimate your take-home pay after income tax:
| Income | Rate |
|---|---|
| ¥0 - ¥36,000 | 3% |
| ¥36,000 - ¥144,000 | 10% |
| ¥144,000 - ¥300,000 | 20% |
| ¥300,000 - ¥420,000 | 25% |
| ¥420,000 - ¥660,000 | 30% |
| ¥660,000 - ¥960,000 | 35% |
| Over ¥960,000 | 45% |
China tax connects with these hubs on CountryTaxCalc:
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