Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
5,000 元
Income Tax
- 323 元
Housing Fund
- 350 元
Pension
- 400 元
Medical Insurance
- 100 元
Unemployment
- 25 元
Total tax
- 1,198 元
Net pay
* 3,803 元
Marginal tax rate
25.8%
Average tax rate
24.0%
76.1%
Net pay
24.0%
Total tax
Total tax
Net pay
The Taxberg
3,803 元
Net pay
1,742 元
Tax the employer pays
1,198 元
Tax you pay
Total tax paid
2,940 元
Did you know your employer also pays tax on your salary? It costs the employer 1,742 元 to pay you 5,000 元. In other words, every time you spend 10 元 of your hard-earned money, 5.88 元 goes to the government.
Real tax rate
43.6%
So, with you and the employer both paying tax, what used to be a 24% tax rate now rises to 43.6%, meaning your real tax rate is actually 19.6% higher than what it seemed at first.
Summary
If you make 60,000 元 a year living in the region of Shanghai, China, you will be taxed 14,370 元. That means that your net pay will be 45,630 元 per year, or 3,803 元 per month. Your average tax rate is 24.0% and your marginal tax rate is 25.8%. 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 25.75 元, hence, your net pay will only increase by 74.25 元.
Bonus Example
A 1,000 元 bonus will generate an extra 743 元 of net incomes. A 5,000 元 bonus will generate an extra 3,713 元 of net incomes.
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 45630
24.0%
1
Guangzhou
CNY 43092
28.2%
2
Beijing
CNY 42930
28.5%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 54619
9.0%
1
Canada
CNY 46305
22.8%
2
Latin America
Country 
Net pay
Average tax
Rank
Puerto Rico
CNY 55230
8.0%
1
Colombia
CNY 55200
8.0%
2
Ecuador
CNY 54330
9.5%
3
Guatemala
CNY 54247
9.6%
4
Costa Rica
CNY 53700
10.5%
5
Panama
CNY 53400
11.0%
6
Peru
CNY 52500
12.5%
7
Mexico
CNY 51785
13.7%
8
Brazil
CNY 51313
14.5%
9
Chile
CNY 49440
17.6%
10
Uruguay
CNY 47940
20.1%
11
Argentina
CNY 38950
35.1%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CNY 57000
5.0%
1
Qatar
CNY 57000
5.0%
2
Bahrain
CNY 55200
8.0%
3
Oman
CNY 55200
8.0%
4
Saudi Arabia
CNY 54000
10.0%
5
Kuwait
CNY 53400
11.0%
6
Israel
CNY 52110
13.2%
7
Egypt
CNY 46952
21.8%
8
Lebanon
CNY 46366
22.7%
9
Turkey
CNY 35721
40.5%
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.