Policy Overview
According to the Individual Income Tax Law of the People's Republic of China, for resident individuals' comprehensive income, the taxable income is the balance after deducting expenses of 60,000 yuan per year, as well as special deductions, special additional deductions, and other deductions determined by law. Wages and salaries are subject to a seven-tier progressive tax rate ranging from 3% to 45%.
Standard Deduction: 5,000 CNY/month (60,000 CNY/year)
Tax Brackets
| Level | Taxable Income | Tax Rate | Quick Deduction |
|---|
| 1 | Up to 3,000 CNY | 3% | 0 |
|---|
| 2 | 3,000 - 12,000 CNY | 10% | 210 |
|---|
| 3 | 12,000 - 25,000 CNY | 20% | 1,410 |
|---|
| 4 | 25,000 - 35,000 CNY | 25% | 2,660 |
|---|
| 5 | 35,000 - 55,000 CNY | 30% | 4,410 |
|---|
| 6 | 55,000 - 80,000 CNY | 35% | 7,160 |
|---|
| 7 | Over 80,000 CNY | 45% | 15,160 |
|---|
Calculation Formula
- Taxable Income = Monthly Income - 5,000 CNY (Standard Deduction)
- Tax Amount = Taxable Income × Tax Rate - Quick Deduction
- After-Tax Income = Monthly Income - Tax Amount
Special Additional Deductions
- Children's Education: 1,000 CNY per child per month
- Continuing Education: 400 CNY per month or 3,600 CNY per year
- Medical Treatment for Serious Illness: Up to 80,000 CNY per year
- Housing Loan Interest: 1,000 CNY per month
- Housing Rent: 800-1,500 CNY per month
- Elderly Care: 2,000 CNY per month
- Infant Care (under 3 years): 1,000 CNY per infant per month
Example Calculation
Assuming monthly income of 15,000 CNY:
- Taxable Income = 15,000 - 5,000 = 10,000 CNY
- Applies Level 2 tax rate: 10%, Quick Deduction 210 CNY
- Tax Amount = 10,000 × 10% - 210 = 790 CNY
- After-Tax Income = 15,000 - 790 = 14,210 CNY