Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
3,333 元
Income Tax
- 82.49 元
Housing Fund
- 233 元
Pension
- 267 元
Medical Insurance
- 66.66 元
Unemployment
- 16.67 元
Total tax
- 666 元
Net pay
* 2,667 元
Marginal tax rate
20.0%
Average tax rate
20.0%
80.0%
Net pay
20.0%
Total tax
Total tax
Net pay
The Taxberg
2,667 元
Net pay
1,161 元
Tax the employer pays
666 元
Tax you pay
Total tax paid
1,827 元
Did you know your employer also pays tax on your salary? It costs the employer 1,161 元 to pay you 3,333 元. In other words, every time you spend 10 元 of your hard-earned money, 5.48 元 goes to the government.
Real tax rate
40.7%
So, with you and the employer both paying tax, what used to be a 20% tax rate now rises to 40.7%, meaning your real tax rate is actually 20.7% higher than what it seemed at first.
Summary
If you make 39,996 元 a year living in the region of Shanghai, China, you will be taxed 7,989 元. That means that your net pay will be 32,007 元 per year, or 2,667 元 per month. Your average tax rate is 20.0% and your marginal tax rate is 20.0%. 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 19.98 元, hence, your net pay will only increase by 80.02 元.
Bonus Example
A 1,000 元 bonus will generate an extra 800 元 of net incomes. A 5,000 元 bonus will generate an extra 4,001 元 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 32007
20.0%
1
Guangzhou
CNY 30183
24.5%
2
Beijing
CNY 30067
24.8%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 36532
8.7%
1
Canada
CNY 32215
19.5%
2
Africa
Country 
Net pay
Average tax
Rank
South Africa
CNY 38975
2.6%
1
Morocco
CNY 35662
10.8%
2
Cameroon
CNY 32657
18.4%
3
Ivory Coast
CNY 32358
19.1%
4
Mozambique
CNY 31925
20.2%
5
Kenya
CNY 31888
20.3%
6
Ghana
CNY 30244
24.4%
7
Angola
CNY 30138
24.7%
8
Zambia
CNY 28604
28.5%
9
Senegal
CNY 28153
29.6%
10
Uganda
CNY 28120
29.7%
11
Nigeria
CNY 28102
29.7%
12
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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.