Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
18,395 元
Income Tax
- 2,045 元
Housing Fund
- 1,288 元
Pension
- 1,472 元
Medical Insurance
- 368 元
Unemployment
- 91.98 元
Total tax
- 5,264 元
Net pay
* 13,131 元
Marginal tax rate
34.0%
Average tax rate
28.6%
71.4%
Net pay
28.6%
Total tax
Total tax
Net pay
The Taxberg
13,131 元
Net pay
6,409 元
Tax the employer pays
5,264 元
Tax you pay
Total tax paid
11,673 元
Did you know your employer also pays tax on your salary? It costs the employer 6,409 元 to pay you 18,395 元. In other words, every time you spend 10 元 of your hard-earned money, 6.35 元 goes to the government.
Real tax rate
47.1%
So, with you and the employer both paying tax, what used to be a 28.6% tax rate now rises to 47.1%, meaning your real tax rate is actually 18.5% higher than what it seemed at first.
Summary
If you make 220,740 元 a year living in the region of Shanghai, China, you will be taxed 63,172 元. That means that your net pay will be 157,568 元 per year, or 13,131 元 per month. Your average tax rate is 28.6% and your marginal tax rate is 34.0%. 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 34 元, hence, your net pay will only increase by 66 元.
Bonus Example
A 1,000 元 bonus will generate an extra 660 元 of net incomes. A 5,000 元 bonus will generate an extra 3,300 元 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 157568
28.6%
1
Guangzhou
CNY 149269
32.4%
2
Beijing
CNY 148739
32.6%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 180502
18.2%
1
Canada
CNY 163129
26.1%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
CNY 199574
9.6%
1
Puerto Rico
CNY 193519
12.3%
2
Costa Rica
CNY 192415
12.8%
3
Ecuador
CNY 186504
15.5%
4
Panama
CNY 178911
19.0%
5
Colombia
CNY 178728
19.0%
6
Chile
CNY 176401
20.1%
7
Mexico
CNY 168833
23.5%
8
Peru
CNY 168256
23.8%
9
Brazil
CNY 164091
25.7%
10
Uruguay
CNY 159455
27.8%
11
Argentina
CNY 143431
35.0%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CNY 209703
5.0%
1
Qatar
CNY 209703
5.0%
2
Bahrain
CNY 203081
8.0%
3
Oman
CNY 203081
8.0%
4
Saudi Arabia
CNY 198666
10.0%
5
Kuwait
CNY 196459
11.0%
6
Israel
CNY 183709
16.8%
7
Egypt
CNY 167550
24.1%
8
Lebanon
CNY 166921
24.4%
9
Turkey
CNY 129944
41.1%
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.