Income Tax Calculator
2026 China personal income tax calculation with social insurance and special deductions
Tax Rate Table
| Level | Monthly Taxable Income | Rate | Quick Deduction |
|---|---|---|---|
| 1 | 0 - 3,000 | 3% | 0 |
| 2 | 3,000 - 12,000 | 10% | 210 |
| 3 | 12,000 - 25,000 | 20% | 1,410 |
| 4 | 25,000 - 35,000 | 25% | 2,660 |
| 5 | 35,000 - 55,000 | 30% | 4,410 |
| 6 | 55,000 - 80,000 | 35% | 7,160 |
| 7 | > 80,000 | 45% | 15,160 |
What is Income Tax Calculator?
Income Tax Calculator is an online personal income tax calculation tool based on China's Personal Income Tax Law, using 7-level progressive tax rates for wages and salaries. This calculator is based on the 2026 latest tax rate table to help you quickly understand your actual monthly take-home pay. Calculation Formula: Tax Amount = (Gross Salary - Social Insurance - Special Deductions - 5000 Threshold) × Tax Rate - Quick Deduction. Core Features: Progressive Tax Calculation (automatically matches 7-level progressive tax rates), Social Insurance Deduction (supports custom amounts), Special Additional Deductions (includes 8 types), Real-time Results (instantly shows taxable income, tax rate, and net salary). The threshold is the tax-free amount stipulated by tax law. China's personal income tax threshold is currently 5,000 CNY per month (60,000 CNY per year). Monthly income below 5,000 CNY is exempt from personal income tax, while income above is taxed at progressive rates. All calculations are performed locally in your browser to protect your privacy.
How to Use
How to use
- Enter gross monthly salary (in CNY)
- Enter personal social insurance contribution (consult HR for accurate amount)
- Enter special additional deductions (children education, mortgage interest, etc.)
- Threshold defaults to 5000 CNY, usually no need to change
- Click 'Calculate' to view results
- View tax amount, net salary, and applicable tax rate
Special Additional Deductions Guide
Tax Estimate Tips
- Use current payroll and deduction figures when possible; small changes in insurance contributions can change taxable income and final net salary.
- This calculator is for estimation and comparison. Confirm filing rules, deduction eligibility, and annual settlement details with a tax professional or local authority.
Use Cases
Technical Principle
China's resident individual wage and salary income currently follows a 'cumulative withholding + annual final settlement' model: the year's comprehensive income is taxed under the 7-level progressive rate table, withheld month by month against the running total, and reconciled in the March-June window of the following year. 'Progressive' means different income bands carry different marginal rates - every extra CNY is taxed at the rate of the band it falls into, not the entire income taxed at one band - so crossing a band threshold never creates the 'earn more, take home less' trap. Taxable income = gross salary - threshold (per the latest policy) - employee's share of social insurance - special additional deductions - other legally allowed deductions. Social insurance (pension, medical, unemployment, work injury, maternity + housing fund) is paid on a city-defined contribution base and rate, and the employee's share is pre-tax deductible; the employer's share is not counted as personal income. Special additional deductions currently cover 7 items (children education, continuing education, major medical, mortgage interest, housing rent, elderly support, infant care under 3), with their standards, caps, and optional sharing rules following the latest policy. Monthly cumulative withholding: starting from the beginning of the year, income and deductions are accumulated month by month; the running taxable income is looked up in the annual rate table to get the cumulative tax due so far, and the current month's withholding is the cumulative tax minus what was already withheld in prior months. The practical effect is that the monthly withholding shifts as the cumulative total crosses thresholds, instead of being recomputed independently each month. Year-end bonuses currently have two taxation options: 'separate' divides the bonus by 12 to find the rate on the monthly table and applies bonus x rate - quick deduction; 'combined' merges the bonus into the year's comprehensive income and applies the annual rate table. The two paths' net cost varies with the individual's income level, so the only way to know which is cheaper is to actually run the numbers.
- 7-level progressive structure: different income bands have different marginal rates, each extra CNY is taxed at the rate of its own band, and crossing a band never reduces total take-home pay.
- Taxable income = gross salary - threshold (per latest policy) - social insurance - special additional deductions - other legally allowed deductions.
- Cumulative withholding: each month's withholding is the cumulative tax looked up from the running total minus prior months' withholding, so the monthly figure changes over time.
- Social insurance is paid on a city-defined base and rate; the employee's share is pre-tax deductible, the employer's share is not part of personal income.
- There are 7 special additional deduction items today; standards, caps, and sharing rules follow the latest policy and must be filed through the personal income tax app.
- Year-end bonus can be taxed separately or combined with comprehensive income; the break-even point and which path wins depend on the individual's income, so run both scenarios.
- The annual final settlement runs March-June of the following year, and most people either refund or top up; the tax authority's calculation is the authoritative one, and this tool is for estimation only.
Examples
20,000 CNY monthly salary, single, no extra deductions
Inputs:
Gross salary: 20,000 CNY
Social insurance: 2,300 CNY (employee share, varies by city)
Special deductions: 0 CNY
Threshold: 5,000 CNY (default 2026 monthly standard)
Calculation:
Taxable = 20,000 - 2,300 - 0 - 5,000 = 12,700 CNY
Bracket: 12,000 - 25,000 -> rate 20%, quick deduction 1,410
Tax = 12,700 * 20% - 1,410 = 2,540 - 1,410 = 1,130 CNY
Result:
Taxable income: 12,700 CNY
Tax amount: 1,130 CNY
Net take-home: 20,000 - 2,300 - 1,130 = 16,570 CNY
Cross-check by walking the monthly brackets:
0 - 3,000: 3,000 * 3% = 90
3,000 - 12,000: 9,000 * 10% = 900
12,000 - 12,700: 700 * 20% = 140
Sum: = 1,130 (matches)
The 20% rate kicks in at 12,000 taxable, so a small raise that
crosses 12,000 from below causes a larger jump in tax than the
marginal rate alone suggests - the quick-deduction step (from 210
to 1,410) is what the bracket walk absorbs as a single +200 bump.Same salary, with 2,000 CNY special additional deduction
Inputs:
Gross salary: 20,000 CNY
Social insurance: 2,300 CNY
Special deductions: 2,000 CNY (e.g. mortgage interest 1,000 + elder care 1,000)
Threshold: 5,000 CNY
Calculation:
Taxable = 20,000 - 2,300 - 2,000 - 5,000 = 10,700 CNY
Bracket: 3,000 - 12,000 -> rate 10%, quick deduction 210
Tax = 10,700 * 10% - 210 = 1,070 - 210 = 860 CNY
Result:
Tax amount: 860 CNY (vs 1,130 without the deduction)
Tax saved: 270 CNY (= 2,000 of deduction * 10% + 700 * (20% - 10%)
= 200 + 70 = 270; the 700 is income that
moved from the 20% bracket down to the 10% bracket)
Net take-home: 20,000 - 2,300 - 2,000 - 860 = 14,840 CNY
The 2,000 deduction crosses the 12,000 bracket boundary, so the
saving is the simple-bracket saving (2,000 * 10% = 200) plus the
10-percentage-point drop on the 700 that fell from the 20% bracket
(700 * 10% = 70). It is more than the straight 2,000 * 10% = 200
because the deduction shifts the bracket boundary as well.Year-end bonus: separate vs combined taxation
Inputs:
Annual salary: 240,000 CNY (monthly 20,000)
Year-end bonus: 50,000 CNY
Social insurance: 2,300 CNY/month, special deduction: 0, threshold: 5,000
Plan A - separate (bonus divided by 12, look up monthly table):
50,000 / 12 = 4,166.67 -> monthly bracket 3,000-12,000, rate 10%, QD 210
Bonus tax = 50,000 * 10% - 210 = 4,790 CNY
Bonus net = 50,000 - 4,790 = 45,210 CNY
Salary tax = 12,700 * 20% - 1,410 = 1,130 CNY/month (from example 1)
Annual take-home = (16,570 * 12) + 45,210 = 198,840 + 45,210 = 244,050 CNY
Plan B - combined (bonus added to annual taxable):
Annual gross = 290,000 CNY
Annual social ins = 27,600 CNY
Annual threshold = 60,000 CNY
Annual taxable = 290,000 - 27,600 - 60,000 = 202,400 CNY
Annual bracket table (same 7 levels scaled by 12):
0-36,000: 36,000 * 3% = 1,080
36,000-144,000: 108,000 * 10% = 10,800
144,000-202,400: 58,400 * 20% = 11,680
Sum: 1,080 + 10,800 + 11,680 = 23,560 CNY
Net = 290,000 - 27,600 - 23,560 = 238,840 CNY
Comparison: Plan A 244,050 vs Plan B 238,840 -> Plan A wins by 5,210 CNY
at this income level. Run both in the tool to confirm; the break-even
point depends on the annual taxable and the bonus size.Stacking special additional deductions
Household: married, one child under 3, first-home mortgage,
supporting both parents (only child, so 2,000 CNY full)
Stacked monthly deductions:
Infant care (<3): 1,000 CNY
Children education: 1,000 CNY (one child)
Mortgage interest: 1,000 CNY (first home, max 240 months)
Elder care: 2,000 CNY (only child supporting both parents)
--------------------------------
Total special deduction: 5,000 CNY/month
Effect on a 25,000 CNY monthly salary with 2,500 social insurance:
No special deduction: taxable = 25,000 - 2,500 - 0 - 5,000 = 17,500
bracket 12,000-25,000, rate 20%, QD 1,410
tax = 17,500 * 20% - 1,410 = 2,090 CNY
With 5,000 special: taxable = 25,000 - 2,500 - 5,000 - 5,000 = 7,500
bracket 3,000-12,000, rate 10%, QD 210
tax = 7,500 * 10% - 210 = 540 CNY
Tax saving: 2,090 - 540 = 1,550 CNY/month = 18,600 CNY/year
Bracket shift: 5,000 of income moved from 20% to 10% bracket
(the saved income itself pays 10% instead of 20%)
The 5,000 is a deduction, not a credit, so it reduces the take-home
base by 5,000 directly. The tax saving (1,550) is on top of the
items it covers (childcare, education, mortgage interest, elder
care) - you only claim it on expenses you are already incurring.
File through the Individual Income Tax app (the official personal-
tax mobile app operated by China's State Taxation Administration);
the withholding agent applies the deductions monthly to the salary.FAQ
Which tax rules does this calculator use?
It is written for China's individual income tax on wages and salaries. The calculation uses the 5,000 CNY monthly basic deduction, the seven-level progressive tax table, social insurance and housing fund deductions, and the special additional deductions shown on the page.
Are social insurance and housing fund included?
Yes, when you enter those amounts or rates, they are deducted before taxable income is calculated. Actual contribution bases and rates vary by city and employer, so use the figures from your payslip or local policy when accuracy matters.
Are special additional deductions included?
The page supports the common special additional deductions listed in the form, such as children education, continuing education, serious illness medical expenses, housing loan interest or rent, elder care, infant care, and other items supported by the current page. Eligibility and caps still depend on official rules.
Why does my actual payslip differ?
Real payroll may use cumulative withholding, city-specific contribution bases, employer benefits, rounding rules, year-to-date adjustments, and HR corrections. Treat the result as an estimate for salary planning, then compare it with your employer's payroll system or official tax app.
Are the 2026 brackets current?
The page is based on the tax rates and assumptions stated in its description. If China's personal income tax law, deduction standards, or local social insurance policies change, verify the result against the latest official notice before using it for filing or payroll decisions.
Can I use it for bonuses, labor service income, or business income?
Not directly. Annual bonuses, labor remuneration, royalties, author's remuneration, and business income can use different tax treatments or annual settlement rules. Use this page mainly for monthly wage and salary estimates unless the page explicitly adds those modes.
Is my salary information uploaded?
No. The calculation runs in your browser, and salary, deduction, and insurance inputs are not uploaded or saved by the page.