The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
TAX GUIDE

China Tax Guide Hub 2026: Income Tax, Rates & Calculator

KEY INSIGHT
China's hidden trap: the 3-45% income tax is only part of the picture—social insurance adds ~22% (pension 8%, medical 2%, housing fund 12%). A ¥300,000 earner pays ~¥25,000 income tax plus ¥50,000+ social insurance. Annual bonuses taxed separately (favorable). Expat exemptions ended 2024. Standard deduction: ¥60,000/year.
At a glance

Key Facts

Tax Rate Range
3-45%
Tax Type
Progressive - rate increases with income
Filing Deadline
March 1 – June 30 (annual reconciliation; most employees withheld monthly)
Introduction

China uses a progressive IIT (Individual Income Tax) system with rates from 3% to 45% across 7 brackets, plus mandatory social insurance (~22% employee contributions for pension, medical, and housing fund). The standard deduction is ¥5,000/month (¥60,000/year). A ¥300,000 earner (~$41,000 USD) pays roughly ¥25,000 income tax (~8%) plus ¥50,000+ social insurance. 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.

Section 01

China Tax Guides

Detailed China tax guides on CountryTaxCalc:

Section 02

China Income Tax Calculator

China's income tax uses 7 tax brackets from 3% to 45%. Use the calculator to estimate your take-home pay after income tax:

IncomeRate
¥0 - ¥36,0003%
¥36,000 - ¥144,00010%
¥144,000 - ¥300,00020%
¥300,000 - ¥420,00025%
¥420,000 - ¥660,00030%
¥660,000 - ¥960,00035%
Over ¥960,00045%
Section 03

Related Hubs

China tax connects with these hubs on CountryTaxCalc:

💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships

US Expat Tax Specialist

Greenback Expat Tax Services

★ 4.8 Trustpilot  ·  1,625 reviews

US citizens living in China still file US federal returns — FEIE, FTC, FBAR, and FATCA all apply. Greenback's CPAs specialise in US expat tax compliance worldwide.

⚠ Not the cheapest option — best for complex situations and expats who want a dedicated CPA.

US Citizens: File Your US Taxes from China →
Best for Transfers

Wise

★ 4.3 Trustpilot  ·  287,413 reviews

Transfer money to or from China at the real exchange rate. Save up to 5x vs banks on international transfers.

⚠ For currency exchange only — not a bank account replacement.

Send Money To/From China →
FAQ

Frequently Asked Questions

What are China's IIT (Individual Income Tax) brackets for 2026?

China has 7 progressive brackets on annual comprehensive income (after ¥60,000 standard deduction): 3% on ¥0-36,000, 10% on ¥36,000-144,000, 20% on ¥144,000-300,000, 25% on ¥300,000-420,000, 30% on ¥420,000-660,000, 35% on ¥660,000-960,000, and 45% above ¥960,000. Thresholds are cumulative taxable income after deductions.

What social insurance do employees pay in China?

Chinese employees pay roughly 22% in social insurance: pension (~8%), medical insurance (~2%), unemployment (~0.5%), and housing fund (5-12%, varies by city). Employers add another ~30%. Contributions are capped at 3× local average salary. Foreign workers in China must also participate since 2011, though some treaty exemptions exist.

What deductions can reduce Chinese income tax?

Beyond the ¥60,000 standard deduction, China offers: children's education (¥24,000/child/year), infant care (¥24,000/child under 3), elderly parent care (¥24,000-36,000/year), continuing education (¥4,800-19,200/year), housing loan interest (¥12,000/year), and rent (¥9,600-19,200/year depending on city). These are claimed via the IIT app.

How are annual bonuses taxed in China?

Until end of 2027, annual bonuses can be taxed separately using a favorable formula: divide bonus by 12 to find the applicable rate, then apply that rate to the full bonus. This often results in lower tax than adding bonus to salary. For a ¥120,000 bonus, separate taxation saves roughly ¥5,000 compared to consolidation. Choose wisely in your annual reconciliation.
Disclaimer:This hub provides general information about China taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official China tax authority or a qualified local tax adviser. This is not tax or legal advice.
Keep reading

Related Guides