Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
3,388 元
Income Tax
- 83.85 元
Housing Fund
- 237 元
Pension
- 271 元
Medical Insurance
- 67.76 元
Unemployment
- 16.94 元
Total tax
- 677 元
Net pay
* 2,711 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
2,711 元
Net pay
1,180 元
Tax the employer pays
677 元
Tax you pay
Total tax paid
1,857 元
Did you know your employer also pays tax on your salary? It costs the employer 1,180 元 to pay you 3,388 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 40,656 元 a year living in the region of Shanghai, China, you will be taxed 8,121 元. That means that your net pay will be 32,535 元 per year, or 2,711 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 19.97 元, hence, your net pay will only increase by 80.03 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 4,002 元 of net incomes.
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 32535
20.0%
1
Guangzhou
CNY 30681
24.5%
2
Beijing
CNY 30563
24.8%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 37135
8.7%
1
Canada
CNY 32673
19.6%
2
Latin America
Country 
Net pay
Average tax
Rank
Colombia
CNY 37943
7.9%
1
Puerto Rico
CNY 37424
8.0%
2
Ecuador
CNY 36814
9.5%
3
Guatemala
CNY 36758
9.6%
4
Brazil
CNY 36518
10.2%
5
Mexico
CNY 36412
10.4%
6
Costa Rica
CNY 36387
10.5%
7
Panama
CNY 36184
11.0%
8
Peru
CNY 35574
12.5%
9
Chile
CNY 33501
17.6%
10
Uruguay
CNY 32484
20.1%
11
Argentina
CNY 26376
35.1%
12
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Africa
Country 
Net pay
Average tax
Rank
South Africa
CNY 39510
2.8%
1
Morocco
CNY 36158
11.1%
2
Cameroon
CNY 33110
18.6%
3
Ivory Coast
CNY 32836
19.2%
4
Mozambique
CNY 32433
20.2%
5
Kenya
CNY 32344
20.4%
6
Ghana
CNY 30712
24.5%
7
Angola
CNY 30624
24.7%
8
Zambia
CNY 28977
28.7%
9
Senegal
CNY 28578
29.7%
10
Nigeria
CNY 28551
29.8%
11
Uganda
CNY 28549
29.8%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CNY 38623
5.0%
1
Qatar
CNY 38623
5.0%
2
Bahrain
CNY 37404
8.0%
3
Oman
CNY 37404
8.0%
4
Saudi Arabia
CNY 36590
10.0%
5
Kuwait
CNY 36184
11.0%
6
Israel
CNY 35310
13.2%
7
Egypt
CNY 31987
21.3%
8
Lebanon
CNY 31858
21.6%
9
Turkey
CNY 25046
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.