Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
7,125 元
Income Tax
- 498 元
Housing Fund
- 499 元
Pension
- 570 元
Medical Insurance
- 143 元
Unemployment
- 35.63 元
Total tax
- 1,745 元
Net pay
* 5,380 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
5,380 元
Net pay
2,482 元
Tax the employer pays
1,745 元
Tax you pay
Total tax paid
4,227 元
Did you know your employer also pays tax on your salary? It costs the employer 2,482 元 to pay you 7,125 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 85,500 元 a year living in the region of Shanghai, China, you will be taxed 20,936 元. That means that your net pay will be 64,564 元 per year, or 5,380 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.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 64564
24.5%
1
Guangzhou
CNY 60947
28.7%
2
Beijing
CNY 60716
29.0%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 77018
9.9%
1
Canada
CNY 65208
23.7%
2
Latin America
Country 
Net pay
Average tax
Rank
Puerto Rico
CNY 78764
7.9%
1
Colombia
CNY 77678
9.2%
2
Ecuador
CNY 77371
9.5%
3
Guatemala
CNY 77302
9.6%
4
Costa Rica
CNY 76523
10.5%
5
Panama
CNY 76095
11.0%
6
Mexico
CNY 71131
16.8%
7
Chile
CNY 70437
17.6%
8
Uruguay
CNY 68314
20.1%
9
Brazil
CNY 68216
20.2%
10
Peru
CNY 66987
21.7%
11
Argentina
CNY 55525
35.1%
12
Show more
Africa
Country 
Net pay
Average tax
Rank
South Africa
CNY 75847
11.3%
1
Morocco
CNY 66130
22.7%
2
Mozambique
CNY 65541
23.3%
3
Ivory Coast
CNY 64013
25.1%
4
Kenya
CNY 63508
25.7%
5
Angola
CNY 63440
25.8%
6
Ghana
CNY 62495
26.9%
7
Cameroon
CNY 61475
28.1%
8
Nigeria
CNY 59054
30.9%
9
Uganda
CNY 57697
32.5%
10
Senegal
CNY 57408
32.9%
11
Zambia
CNY 54690
36.0%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CNY 81225
5.0%
1
Qatar
CNY 81225
5.0%
2
Bahrain
CNY 78660
8.0%
3
Oman
CNY 78660
8.0%
4
Saudi Arabia
CNY 76950
10.0%
5
Kuwait
CNY 76095
11.0%
6
Israel
CNY 74257
13.2%
7
Egypt
CNY 66120
22.7%
8
Lebanon
CNY 65491
23.4%
9
Turkey
CNY 48532
43.2%
10
Show more
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.