Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
1,080,000 元
Income Tax
- 462,052 元
Housing Fund
- 4,329 元
Pension
- 1,835 元
Medical Insurance
- 676 元
Unemployment
- 67.57 元
Total tax
- 468,959 元
Net pay
* 611,041 元
Marginal tax rate
45.0%
Average tax rate
43.4%
56.6%
Net pay
43.4%
Total tax
Total tax
Net pay
The Taxberg
611,041 元
Net pay
10,010 元
Tax the employer pays
468,959 元
Tax you pay
Total tax paid
478,969 元
Did you know your employer also pays tax on your salary? It costs the employer 10,010 元 to pay you 1,080,000 元. In other words, every time you spend 10 元 of your hard-earned money, 4.43 元 goes to the government.
Real tax rate
43.9%
So, with you and the employer both paying tax, what used to be a 43.4% tax rate now rises to 43.9%, meaning your real tax rate is actually 0.5% higher than what it seemed at first.
Summary
If you make 12,960,000 元 a year living in the region of Guangzhou, China, you will be taxed 5,627,508 元. That means that your net pay will be 7,332,492 元 per year, or 611,041 元 per month. Your average tax rate is 43.4% 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 7333271
43.4%
1
Guangzhou
CNY 7332492
43.4%
2
Shanghai
CNY 7340775
43.4%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 7161147
44.7%
1
Canada
CNY 6191525
52.2%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
CNY 11476258
11.5%
1
Brazil
CNY 9400055
27.5%
2
Costa Rica
CNY 8781257
32.2%
3
Panama
CNY 8698846
32.9%
4
Mexico
CNY 8458840
34.7%
5
Argentina
CNY 8423950
35.0%
6
Puerto Rico
CNY 8419728
35.0%
7
Colombia
CNY 8075635
37.7%
8
Uruguay
CNY 8068547
37.7%
9
Peru
CNY 7994932
38.3%
10
Chile
CNY 7952226
38.6%
11
Ecuador
CNY 7491774
42.2%
12
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Africa
Country 
Net pay
Average tax
Rank
Angola
CNY 9429651
27.2%
1
Kenya
CNY 9075658
30.0%
2
Ivory Coast
CNY 8834329
31.8%
3
Nigeria
CNY 8816289
32.0%
4
Ghana
CNY 8580240
33.8%
5
Mozambique
CNY 8439965
34.9%
6
Zambia
CNY 7972508
38.5%
7
Cameroon
CNY 7899593
39.1%
8
Morocco
CNY 7869917
39.3%
9
Senegal
CNY 7784257
39.9%
10
South Africa
CNY 7199824
44.5%
11
Uganda
CNY 7153791
44.8%
12
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Middle East
Country 
Net pay
Average tax
Rank
Kuwait
CNY 12883379
0.6%
1
Saudi Arabia
CNY 12856000
0.8%
2
Bahrain
CNY 12765908
1.5%
3
United Arab Emirates
CNY 12312000
5.0%
4
Qatar
CNY 12312000
5.0%
5
Oman
CNY 11923200
8.0%
6
Egypt
CNY 9721995
25.0%
7
Lebanon
CNY 9721366
25.0%
8
Turkey
CNY 7549417
41.8%
9
Israel
CNY 6656867
48.6%
10
Show more
NOTE* Withholding is calculated based on the Guangzhou 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.