Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
720,001 元
Income Tax
- 300,617 元
Housing Fund
- 2,393 元
Pension
- 2,483 元
Medical Insurance
- 621 元
Unemployment
- 155 元
Total tax
- 306,269 元
Net pay
* 413,732 元
Marginal tax rate
45.0%
Average tax rate
42.5%
57.5%
Net pay
42.5%
Total tax
Total tax
Net pay
The Taxberg
413,732 元
Net pay
11,049 元
Tax the employer pays
306,269 元
Tax you pay
Total tax paid
317,318 元
Did you know your employer also pays tax on your salary? It costs the employer 11,049 元 to pay you 720,001 元. In other words, every time you spend 10 元 of your hard-earned money, 4.41 元 goes to the government.
Real tax rate
43.4%
So, with you and the employer both paying tax, what used to be a 42.5% tax rate now rises to 43.4%, meaning your real tax rate is actually 0.9% higher than what it seemed at first.
Summary
If you make 8,640,012 元 a year living in the region of Shanghai, China, you will be taxed 3,675,231 元. That means that your net pay will be 4,964,781 元 per year, or 413,732 元 per month. Your average tax rate is 42.5% and your marginal tax rate is 45.0%. 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 45 元, hence, your net pay will only increase by 55 元.
Bonus Example
A 1,000 元 bonus will generate an extra 550 元 of net incomes. A 5,000 元 bonus will generate an extra 2,750 元 of net incomes.
Europe
Country 
Net pay
Average tax
Rank
Russia
CNY 7516810
13.0%
1
Hungary
CNY 7041610
18.5%
2
Ukraine
CNY 6955210
19.5%
3
Czech Republic
CNY 6645175
23.1%
4
Romania
CNY 5054407
41.5%
5
Poland
CNY 4992646
42.2%
6
Greece
CNY 4853262
43.8%
7
Switzerland
CNY 4768350
44.8%
8
Norway
CNY 4646747
46.2%
9
United Kingdom
CNY 4632064
46.4%
10
Spain
CNY 4603125
46.7%
11
Luxembourg
CNY 4578772
47.0%
12
Denmark
CNY 4518769
47.7%
13
Austria
CNY 4505310
47.9%
14
Netherlands
CNY 4429520
48.7%
15
Sweden
CNY 4389803
49.2%
16
Germany
CNY 4286493
50.4%
17
Ireland
CNY 4254250
50.8%
18
Italy
CNY 3975103
54.0%
19
France
CNY 3871813
55.2%
20
Finland
CNY 3291892
61.9%
21
Belgium
CNY 3268901
62.2%
22
Portugal
CNY 3174990
63.3%
23
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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.