Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
3,350 元
Income Tax
- 82.91 元
Housing Fund
- 235 元
Pension
- 268 元
Medical Insurance
- 67 元
Unemployment
- 16.75 元
Total tax
- 669 元
Net pay
* 2,681 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
2,681 元
Net pay
1,167 元
Tax the employer pays
669 元
Tax you pay
Total tax paid
1,836 元
Did you know your employer also pays tax on your salary? It costs the employer 1,167 元 to pay you 3,350 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 40,200 元 a year living in the region of Shanghai, China, you will be taxed 8,030 元. That means that your net pay will be 32,170 元 per year, or 2,681 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.
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 32170
20.0%
1
Guangzhou
CNY 30337
24.5%
2
Beijing
CNY 30220
24.8%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 36718
8.7%
1
Canada
CNY 32356
19.5%
2
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CNY 38190
5.0%
1
Qatar
CNY 38190
5.0%
2
Bahrain
CNY 36984
8.0%
3
Oman
CNY 36984
8.0%
4
Saudi Arabia
CNY 36180
10.0%
5
Kuwait
CNY 35778
11.0%
6
Israel
CNY 34914
13.2%
7
Egypt
CNY 31634
21.3%
8
Lebanon
CNY 31516
21.6%
9
Turkey
CNY 24781
38.4%
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.