Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
165,000 元
Income Tax
- 50,866 元
Housing Fund
- 2,393 元
Pension
- 2,483 元
Medical Insurance
- 621 元
Unemployment
- 155 元
Total tax
- 56,519 元
Net pay
* 108,481 元
Marginal tax rate
45.0%
Average tax rate
34.3%
65.7%
Net pay
34.3%
Total tax
Total tax
Net pay
The Taxberg
108,481 元
Net pay
11,049 元
Tax the employer pays
56,519 元
Tax you pay
Total tax paid
67,567 元
Did you know your employer also pays tax on your salary? It costs the employer 11,049 元 to pay you 165,000 元. In other words, every time you spend 10 元 of your hard-earned money, 4.09 元 goes to the government.
Real tax rate
38.4%
So, with you and the employer both paying tax, what used to be a 34.3% tax rate now rises to 38.4%, meaning your real tax rate is actually 4.1% higher than what it seemed at first.
Summary
If you make 1,980,000 元 a year living in the region of Shanghai, China, you will be taxed 678,225 元. That means that your net pay will be 1,301,775 元 per year, or 108,481 元 per month. Your average tax rate is 34.3% 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.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 1301775
34.3%
1
Beijing
CNY 1294271
34.6%
2
Guangzhou
CNY 1293492
34.7%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 1268960
35.9%
1
Canada
CNY 1089075
45.0%
2
Africa
Country 
Net pay
Average tax
Rank
Angola
CNY 1441701
27.2%
1
Kenya
CNY 1389658
29.8%
2
Nigeria
CNY 1347693
31.9%
3
Ivory Coast
CNY 1342400
32.2%
4
Ghana
CNY 1316970
33.5%
5
Mozambique
CNY 1302965
34.2%
6
Zambia
CNY 1219808
38.4%
7
Morocco
CNY 1216168
38.6%
8
Cameroon
CNY 1214420
38.7%
9
Senegal
CNY 1196257
39.6%
10
South Africa
CNY 1160824
41.4%
11
Uganda
CNY 1114791
43.7%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
Kuwait
CNY 1903379
3.9%
1
Bahrain
CNY 1895708
4.3%
2
United Arab Emirates
CNY 1881000
5.0%
3
Qatar
CNY 1881000
5.0%
4
Saudi Arabia
CNY 1876000
5.3%
5
Oman
CNY 1821600
8.0%
6
Egypt
CNY 1486995
24.9%
7
Lebanon
CNY 1486366
24.9%
8
Israel
CNY 1166867
41.1%
9
Turkey
CNY 1154555
41.7%
10
Show more
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.