Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
170,000 元
Income Tax
- 52,605 元
Housing Fund
- 3,826 元
Pension
- 2,258 元
Medical Insurance
- 564 元
Unemployment
- 141 元
Total tax
- 59,394 元
Net pay
* 110,606 元
Marginal tax rate
45.0%
Average tax rate
34.9%
65.1%
Net pay
34.9%
Total tax
Total tax
Net pay
The Taxberg
110,606 元
Net pay
11,545 元
Tax the employer pays
59,394 元
Tax you pay
Total tax paid
70,939 元
Did you know your employer also pays tax on your salary? It costs the employer 11,545 元 to pay you 170,000 元. In other words, every time you spend 10 元 of your hard-earned money, 4.17 元 goes to the government.
Real tax rate
39.1%
So, with you and the employer both paying tax, what used to be a 34.9% tax rate now rises to 39.1%, meaning your real tax rate is actually 4.2% higher than what it seemed at first.
Summary
If you make 2,040,000 元 a year living in the region of Beijing, China, you will be taxed 712,729 元. That means that your net pay will be 1,327,271 元 per year, or 110,606 元 per month. Your average tax rate is 34.9% and your marginal tax rate is 45.0%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of 100 元 in your salary will be taxed 45 元, hence, your net pay will only increase by 55 元.
Bonus Example
A 1,000 元 bonus will generate an extra 550 元 of net incomes. A 5,000 元 bonus will generate an extra 2,750 元 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 1334775
34.6%
1
Beijing
CNY 1327271
34.9%
2
Guangzhou
CNY 1326492
35.0%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 1301967
36.2%
1
Canada
CNY 1116957
45.3%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
CNY 1811174
11.2%
1
Brazil
CNY 1483055
27.3%
2
Costa Rica
CNY 1451207
28.9%
3
Uruguay
CNY 1436176
29.6%
4
Colombia
CNY 1413954
30.7%
5
Panama
CNY 1409746
30.9%
6
Chile
CNY 1400226
31.4%
7
Mexico
CNY 1360840
33.3%
8
Puerto Rico
CNY 1359948
33.3%
9
Argentina
CNY 1325950
35.0%
10
Peru
CNY 1306432
36.0%
11
Ecuador
CNY 1262297
38.1%
12
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Africa
Country 
Net pay
Average tax
Rank
Angola
CNY 1485351
27.2%
1
Kenya
CNY 1431658
29.8%
2
Nigeria
CNY 1388505
31.9%
3
Ivory Coast
CNY 1383340
32.2%
4
Ghana
CNY 1356660
33.5%
5
Mozambique
CNY 1341965
34.2%
6
Zambia
CNY 1256708
38.4%
7
Morocco
CNY 1252528
38.6%
8
Cameroon
CNY 1250951
38.7%
9
Senegal
CNY 1232257
39.6%
10
South Africa
CNY 1193824
41.5%
11
Uganda
CNY 1147791
43.7%
12
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NOTE* Withholding is calculated based on the Beijing tables of China, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.