Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
1,725,000 元
Income Tax
- 752,355 元
Housing Fund
- 3,826 元
Pension
- 2,258 元
Medical Insurance
- 564 元
Unemployment
- 141 元
Total tax
- 759,144 元
Net pay
* 965,856 元
Marginal tax rate
45.0%
Average tax rate
44.0%
56.0%
Net pay
44.0%
Total tax
Total tax
Net pay
The Taxberg
965,856 元
Net pay
11,545 元
Tax the employer pays
759,144 元
Tax you pay
Total tax paid
770,689 元
Did you know your employer also pays tax on your salary? It costs the employer 11,545 元 to pay you 1,725,000 元. In other words, every time you spend 10 元 of your hard-earned money, 4.47 元 goes to the government.
Real tax rate
44.4%
So, with you and the employer both paying tax, what used to be a 44% tax rate now rises to 44.4%, meaning your real tax rate is actually 0.4% higher than what it seemed at first.
Summary
If you make 20,700,000 元 a year living in the region of Beijing, China, you will be taxed 9,109,729 元. That means that your net pay will be 11,590,271 元 per year, or 965,856 元 per month. Your average tax rate is 44.0% 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
Beijing
CNY 11590271
44.0%
1
Guangzhou
CNY 11589492
44.0%
2
Shanghai
CNY 11597775
44.0%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 11286567
45.5%
1
Canada
CNY 9788333
52.7%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Kazakhstan
CNY 18580861
10.2%
1
Hong Kong
CNY 17204716
16.9%
2
Singapore
CNY 16207898
21.7%
3
Indonesia
CNY 14020052
32.3%
4
Thailand
CNY 13554621
34.5%
5
Pakistan
CNY 13487297
34.8%
6
Vietnam
CNY 13466856
34.9%
7
Philippines
CNY 12902092
37.7%
8
New Zealand
CNY 12703952
38.6%
9
Taiwan
CNY 12602099
39.1%
10
Malaysia
CNY 12353257
40.3%
11
China
CNY 11590271
44.0%
12
Japan
CNY 11346771
45.2%
13
Australia
CNY 11109860
46.3%
14
South Korea
CNY 11013216
46.8%
15
India
CNY 3958594
80.9%
16
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Latin America
Country 
Net pay
Average tax
Rank
Guatemala
CNY 18326785
11.5%
1
Brazil
CNY 15011555
27.5%
2
Costa Rica
CNY 13976732
32.5%
3
Panama
CNY 13865296
33.0%
4
Mexico
CNY 13489840
34.8%
5
Argentina
CNY 13454950
35.0%
6
Puerto Rico
CNY 13423638
35.2%
7
Colombia
CNY 12796849
38.2%
8
Uruguay
CNY 12769513
38.3%
9
Peru
CNY 12735682
38.5%
10
Chile
CNY 12596226
39.2%
11
Ecuador
CNY 11907174
42.5%
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.