China Tax Calculator (2026)

China Income Tax Brackets (2025)

Personal allowance: CN¥60,000

Pension

Capped at CN¥35,810 per year

Medical Insurance

Capped at CN¥8,952 per year

Unemployment Insurance

Capped at CN¥2,238 per year

How much income tax will I pay if I work in China?

China uses a progressive tax system with 7 tax brackets ranging from 3% to 45%, applied to your annual income after a standard deduction of CNY 60,000. For example, income up to CNY 36,000 is taxed at 3%, while income between CNY 36,000 and CNY 144,000 is taxed at 10%, and rates increase for higher income levels. The calculator assumes you are a resident for tax purposes and uses Shanghai's social security rates as the default region.

What social contributions do I need to pay as an employee in China?

As an employee in China, you contribute to three main social insurance programs: Pension (8% of gross income, capped at CNY 35,809.92), Medical Insurance (2%, capped at CNY 8,952.48), and Unemployment Insurance (0.5%, capped at CNY 2,238.12). All three contributions are deductible from your taxable income, which reduces your overall income tax burden. These rates and caps are based on Shanghai's social security system.

Do I pay state or provincial income tax in China?

No, China does not have subnational income tax. You only pay the national progressive income tax on your annual comprehensive income, regardless of which province or city you work in. However, social security contribution rates may vary slightly by region, so if you relocate outside Shanghai, your contribution amounts could differ.

What is the basic deduction and how does it work?

China provides a standard basic deduction of CNY 60,000 per year, which is subtracted from your gross income before calculating income tax. This means if you earn CNY 100,000 annually, only CNY 40,000 is subject to income tax. The calculator includes only this standard deduction; additional deductions like rental or elderly care allowances are excluded as they vary by individual circumstances.

How is my take-home pay calculated?

Your take-home pay is calculated by subtracting both income tax and social contributions (Pension, Medical Insurance, and Unemployment Insurance) from your gross income. The social contributions are deductible, meaning they reduce the amount of income subject to tax. The calculator applies the progressive tax brackets and contribution caps to show your actual net pay after all deductions.

Are housing fund contributions included in the calculator?

No, housing fund contributions are excluded from the calculator because they are employer-specific and vary significantly between companies and regions. If your employer offers a housing fund program, you should add that as a separate deduction to get your true take-home pay. Check with your employer or HR department for your specific housing fund contribution rate.

What if I am not a resident for tax purposes?

The calculator assumes you are a resident for Chinese income tax purposes, which means you are taxed on your worldwide annual comprehensive income. Non-residents may have different tax treatment, so if you are unsure of your resident status, you should consult a tax professional or the local tax authority in your city.

Do I need to pay any surcharges or additional taxes?

No surcharges apply to standard employment income in China. The income tax calculation is based solely on the progressive tax brackets, the basic deduction, and your social contributions. VAT and other surcharges do not affect employment income tax calculations.

Why does the calculator use Shanghai as the default region?

Shanghai is used as the default region because it is one of China's major business and employment hubs for expats and remote workers. However, social security contribution rates and caps can vary by city, so if you work in a different region, you should verify the local rates with your employer or local tax authority for a more accurate calculation.

Compare China with other countries

Other tax calculators