China Income Tax Calculator 2026

Enter your gross monthly salary — we apply social insurance, special deductions and the 2026 IIT brackets.

How Is Personal Income Tax Calculated in China?

China taxes employment income monthly (settled annually). The formula:

Taxable income = Gross salary − Social insurance & housing fund − ¥5,000 − Special additional deductions Monthly IIT = Taxable income × Rate − Quick deduction (see brackets below)

China uses 7 progressive brackets from 3% to 45% applied to annual taxable income. The quick deduction lets you compute with one multiplication instead of applying each bracket separately.

Worked example: ¥15,000 monthly salary

Social insurance & fund ≈ ¥3,000, special deductions ¥1,500. Taxable income = 15,000 − 3,000 − 5,000 − 1,500 = ¥5,500/month → ¥66,000/year, which falls in the 10% bracket: annual IIT = 66,000 × 10% − 2,520 = ¥4,080, about ¥340 per month. Take-home ≈ 15,000 − 3,000 − 340 = ¥11,660.

How to calculate take-home salary

Take-home = Gross salary − Social insurance & housing fund (personal part) − IIT. The personal rates are typically 8% pension, 2% medical, 0.5% unemployment and 5–12% housing fund (city-dependent). Try the dedicated take-home pay calculator for a one-click breakdown.

Annual reconciliation (年度汇算)

Because withholding is monthly, differences arise with bonuses or mid-year job changes. Between March 1 and June 30 each year, reconcile in the 个人所得税 app: overpaid tax is refunded, underpaid tax is settled.

How is personal income tax calculated step by step?

  1. Start with gross monthly salary. This is your pre-tax pay before any deductions.
  2. Subtract social insurance & housing fund. The personal portion is typically 8% pension + 2% medical + 0.5% unemployment + 5–12% housing fund. For a ¥10,000 salary this is roughly ¥1,550–¥2,050.
  3. Subtract the ¥5,000 threshold. This is the standard deduction for every taxpayer — ¥5,000/month or ¥60,000/year.
  4. Subtract special additional deductions. These include children's education (¥2,000/child/month), continuing education (¥400 or ¥3,600/year), housing rent (¥800–¥1,500/month depending on city), mortgage interest (¥1,000/month), elderly care (¥2,000–¥3,000/month split among siblings), serious medical expenses (capped at ¥80,000/year), and infant care (¥2,000/child/month).
  5. The remainder is taxable income. Multiply by annual taxable income to find your bracket (3%, 10%, 20%, 25%, 30%, 35% or 45%) and subtract the quick deduction. Divide by 12 for the monthly withholding amount.
  6. Take-home = Gross − Social insurance − IIT. That is what actually hits your bank account each month.

Does a ¥5,000 salary need to pay tax?

In almost all cases, no. Here is why:

Even at ¥8,000–¥10,000, after social insurance, the ¥5,000 threshold, and one or two special deductions (e.g. rent ¥1,500 + elderly care ¥1,000), taxable income often drops to zero or near-zero. Only when monthly income exceeds roughly ¥12,000–¥15,000 without many deductions does IIT become noticeable.

How to calculate your after-tax (take-home) salary

Take-home pay follows a simple three-step subtraction:

Take-home = Gross salary − Social insurance & housing fund (personal) − IIT

Example: ¥15,000 gross, ¥3,000 social insurance, ¥340 IIT → take-home = 15,000 − 3,000 − 340 = ¥11,660. For a detailed city-by-city breakdown (because housing fund rates vary), use our take-home salary calculator.

Note that social insurance rates are set by each city. The housing fund rate ranges from 5% to 12%; many companies choose the minimum 5%, which means your actual deduction may be lower than the typical 10.5% rule of thumb.

Annual bonus tax methods

Year-end bonuses in China can be taxed in two ways — you choose whichever is lower:

The separate method is being phased out (scheduled to end after 2027). After that, all bonuses must use the combined method. Plan accordingly while the choice still exists.

Special additional deductions — detailed amounts

CategoryMonthly DeductionNotes
Children's education¥2,000 / childFrom preschool through doctoral
Continuing education¥400 (academic) or ¥3,600/yr (vocational)For up to 48 or 36 months
Housing rent¥800–¥1,500Tier-1 cities: ¥1,500; other cities: ¥1,100; counties: ¥800
Mortgage interest¥1,000First-home loan only; max 240 months
Elderly care¥2,000–¥3,000¥3,000 for only child; split among siblings otherwise
Infant care (under 3)¥2,000 / childBoth parents can claim 50% each, or one claims 100%
Serious medicalActual − ¥15,000 self-pay, max ¥80,000/yrClaimed during annual reconciliation

FAQ

What is the income tax threshold in China?

¥5,000 per month (¥60,000 per year). Only the part above this threshold — after social insurance and special additional deductions — is taxed.

Do I pay income tax on a ¥5,000 salary?

Usually no. After social insurance (~¥1,100) and the ¥5,000 threshold, taxable income is zero or negative. With special additional deductions, even ¥8,000–¥10,000 salaries often owe little or no tax.

What are the special additional deductions?

Seven categories: children's education, continuing education, serious medical expenses, mortgage interest, housing rent, elderly care, and care for infants under 3. Claim them in the 个人所得税 app or via your employer.

How is after-tax salary calculated?

Take-home = Gross salary − Social insurance & housing fund (personal part) − IIT. Example: ¥15,000 gross, ¥3,000 social insurance, ¥340 IIT → take-home ¥11,660.

How are year-end bonuses taxed?

Two methods: separate (bonus ÷ 12 to find the rate, then Bonus × Rate − Quick deduction) or combined with annual salary. Choose whichever is lower. The separate method is being phased out after 2027.