Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
1,055,000 元
Income Tax
- 451,366 元
Housing Fund
- 2,393 元
Pension
- 2,483 元
Medical Insurance
- 621 元
Unemployment
- 155 元
Total tax
- 457,019 元
Net pay
* 597,981 元
Marginal tax rate
45.0%
Average tax rate
43.3%
56.7%
Net pay
43.3%
Total tax
Total tax
Net pay
The Taxberg
597,981 元
Net pay
11,049 元
Tax the employer pays
457,019 元
Tax you pay
Total tax paid
468,067 元
Did you know your employer also pays tax on your salary? It costs the employer 11,049 元 to pay you 1,055,000 元. In other words, every time you spend 10 元 of your hard-earned money, 4.44 元 goes to the government.
Real tax rate
43.9%
So, with you and the employer both paying tax, what used to be a 43.3% tax rate now rises to 43.9%, meaning your real tax rate is actually 0.6% higher than what it seemed at first.
Summary
If you make 12,660,000 元 a year living in the region of Shanghai, China, you will be taxed 5,484,225 元. That means that your net pay will be 7,175,775 元 per year, or 597,981 元 per month. Your average tax rate is 43.3% 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.
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 7175775
43.3%
1
Beijing
CNY 7168271
43.4%
2
Guangzhou
CNY 7167492
43.4%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 7001247
44.7%
1
Canada
CNY 6052113
52.2%
2
Africa
Country 
Net pay
Average tax
Rank
Angola
CNY 9211401
27.2%
1
Kenya
CNY 8865658
30.0%
2
Ivory Coast
CNY 8629631
31.8%
3
Nigeria
CNY 8612229
32.0%
4
Ghana
CNY 8381790
33.8%
5
Mozambique
CNY 8244965
34.9%
6
Zambia
CNY 7788008
38.5%
7
Cameroon
CNY 7716938
39.0%
8
Morocco
CNY 7688120
39.3%
9
Senegal
CNY 7604257
39.9%
10
South Africa
CNY 7034824
44.4%
11
Uganda
CNY 6988791
44.8%
12
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Middle East
Country 
Net pay
Average tax
Rank
Kuwait
CNY 12583379
0.6%
1
Saudi Arabia
CNY 12556000
0.8%
2
Bahrain
CNY 12468908
1.5%
3
United Arab Emirates
CNY 12027000
5.0%
4
Qatar
CNY 12027000
5.0%
5
Oman
CNY 11647200
8.0%
6
Egypt
CNY 9496995
25.0%
7
Lebanon
CNY 9496366
25.0%
8
Turkey
CNY 7374694
41.8%
9
Israel
CNY 6506867
48.6%
10
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NOTE* Withholding is calculated based on the Shanghai 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.