Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
18,750 元
Income Tax
- 2,104 元
Housing Fund
- 1,313 元
Pension
- 1,500 元
Medical Insurance
- 375 元
Unemployment
- 93.75 元
Total tax
- 5,385 元
Net pay
* 13,365 元
Marginal tax rate
34.0%
Average tax rate
28.7%
71.3%
Net pay
28.7%
Total tax
Total tax
Net pay
The Taxberg
13,365 元
Net pay
6,533 元
Tax the employer pays
5,385 元
Tax you pay
Total tax paid
11,918 元
Did you know your employer also pays tax on your salary? It costs the employer 6,533 元 to pay you 18,750 元. In other words, every time you spend 10 元 of your hard-earned money, 6.36 元 goes to the government.
Real tax rate
47.1%
So, with you and the employer both paying tax, what used to be a 28.7% tax rate now rises to 47.1%, meaning your real tax rate is actually 18.4% higher than what it seemed at first.
Summary
If you make 225,000 元 a year living in the region of Shanghai, China, you will be taxed 64,620 元. That means that your net pay will be 160,380 元 per year, or 13,365 元 per month. Your average tax rate is 28.7% 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 160380
28.7%
1
Guangzhou
CNY 151920
32.5%
2
Beijing
CNY 151380
32.7%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 183654
18.4%
1
Canada
CNY 166287
26.1%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
CNY 203426
9.6%
1
Puerto Rico
CNY 196857
12.5%
2
Costa Rica
CNY 195847
13.0%
3
Ecuador
CNY 189780
15.7%
4
Panama
CNY 182134
19.1%
5
Colombia
CNY 181712
19.2%
6
Chile
CNY 179630
20.2%
7
Mexico
CNY 171696
23.7%
8
Peru
CNY 171350
23.8%
9
Brazil
CNY 167180
25.7%
10
Uruguay
CNY 162541
27.8%
11
Argentina
CNY 146200
35.0%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CNY 213750
5.0%
1
Qatar
CNY 213750
5.0%
2
Bahrain
CNY 207000
8.0%
3
Oman
CNY 207000
8.0%
4
Saudi Arabia
CNY 202500
10.0%
5
Kuwait
CNY 200250
11.0%
6
Israel
CNY 186784
17.0%
7
Egypt
CNY 170745
24.1%
8
Lebanon
CNY 170116
24.4%
9
Turkey
CNY 132426
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.