Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
3,484 元
Income Tax
- 107 元
Housing Fund
- 244 元
Pension
- 279 元
Medical Insurance
- 69.68 元
Unemployment
- 17.42 元
Total tax
- 717 元
Net pay
* 2,767 元
Marginal tax rate
51.5%
Average tax rate
20.6%
79.4%
Net pay
20.6%
Total tax
Total tax
Net pay
The Taxberg
2,767 元
Net pay
1,214 元
Tax the employer pays
717 元
Tax you pay
Total tax paid
1,931 元
Did you know your employer also pays tax on your salary? It costs the employer 1,214 元 to pay you 3,484 元. In other words, every time you spend 10 元 of your hard-earned money, 5.54 元 goes to the government.
Real tax rate
41.1%
So, with you and the employer both paying tax, what used to be a 20.6% tax rate now rises to 41.1%, meaning your real tax rate is actually 20.5% higher than what it seemed at first.
Summary
If you make 41,808 元 a year living in the region of Shanghai, China, you will be taxed 8,606 元. That means that your net pay will be 33,202 元 per year, or 2,767 元 per month. Your average tax rate is 20.6% and your marginal tax rate is 51.5%. 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 51.51 元, hence, your net pay will only increase by 48.49 元.
Bonus Example
A 1,000 元 bonus will generate an extra 485 元 of net incomes. A 5,000 元 bonus will generate an extra 2,425 元 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 33202
20.6%
1
Guangzhou
CNY 31551
24.5%
2
Beijing
CNY 31429
24.8%
3
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.