Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
7,000 元
Income Tax
- 2,047 元
Housing Fund
- 177 元
Pension
- 104 元
Medical Insurance
- 26.05 元
Unemployment
- 6.51 元
Total tax
- 2,360 元
Net pay
* 4,640 元
Marginal tax rate
45.0%
Average tax rate
33.7%
66.3%
Net pay
33.7%
Total tax
Total tax
Net pay
The Taxberg
4,640 元
Net pay
533 元
Tax the employer pays
2,360 元
Tax you pay
Total tax paid
2,893 元
Did you know your employer also pays tax on your salary? It costs the employer 533 元 to pay you 7,000 元. In other words, every time you spend 10 元 of your hard-earned money, 4.13 元 goes to the government.
Real tax rate
38.4%
So, with you and the employer both paying tax, what used to be a 33.7% tax rate now rises to 38.4%, meaning your real tax rate is actually 4.7% higher than what it seemed at first.
Summary
If you make 1,820,000 元 a year living in the region of Beijing, China, you will be taxed 613,729 元. That means that your net pay will be 1,206,271 元 per year, or 100,523 元 per month. Your average tax rate is 33.7% 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.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 1213775
33.3%
1
Beijing
CNY 1206271
33.7%
2
Guangzhou
CNY 1205492
33.8%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 1180943
35.1%
1
Canada
CNY 1014722
44.3%
2
Middle East
Country 
Net pay
Average tax
Rank
Kuwait
CNY 1743379
4.2%
1
Bahrain
CNY 1737308
4.5%
2
United Arab Emirates
CNY 1729000
5.0%
3
Qatar
CNY 1729000
5.0%
4
Saudi Arabia
CNY 1716000
5.7%
5
Oman
CNY 1674400
8.0%
6
Egypt
CNY 1366995
24.9%
7
Lebanon
CNY 1366366
24.9%
8
Israel
CNY 1086867
40.3%
9
Turkey
CNY 1061369
41.7%
10
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NOTE* Withholding is calculated based on the Beijing 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.