Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
7,000 元
Income Tax
- 488 元
Housing Fund
- 490 元
Pension
- 560 元
Medical Insurance
- 140 元
Unemployment
- 35 元
Total tax
- 1,713 元
Net pay
* 5,288 元
Marginal tax rate
25.8%
Average tax rate
24.5%
75.5%
Net pay
24.5%
Total tax
Total tax
Net pay
The Taxberg
5,288 元
Net pay
2,439 元
Tax the employer pays
1,713 元
Tax you pay
Total tax paid
4,151 元
Did you know your employer also pays tax on your salary? It costs the employer 2,439 元 to pay you 7,000 元. In other words, every time you spend 10 元 of your hard-earned money, 5.93 元 goes to the government.
Real tax rate
44.0%
So, with you and the employer both paying tax, what used to be a 24.5% tax rate now rises to 44.0%, meaning your real tax rate is actually 19.5% higher than what it seemed at first.
Summary
If you make 84,000 元 a year living in the region of Shanghai, China, you will be taxed 20,550 元. That means that your net pay will be 63,450 元 per year, or 5,288 元 per month. Your average tax rate is 24.5% 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 63450
24.5%
1
Guangzhou
CNY 59897
28.7%
2
Beijing
CNY 59670
29.0%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 75701
9.9%
1
Canada
CNY 64096
23.7%
2
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CNY 79800
5.0%
1
Qatar
CNY 79800
5.0%
2
Bahrain
CNY 77280
8.0%
3
Oman
CNY 77280
8.0%
4
Saudi Arabia
CNY 75600
10.0%
5
Kuwait
CNY 74760
11.0%
6
Israel
CNY 72954
13.2%
7
Egypt
CNY 64995
22.6%
8
Lebanon
CNY 64366
23.4%
9
Turkey
CNY 47778
43.1%
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.