Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
2,007 元
Income Tax
- 765 元
Housing Fund
- 22.07 元
Pension
- 13.03 元
Medical Insurance
- 3.26 元
Unemployment
- 0.81 元
Total tax
- 804 元
Net pay
* 1,203 元
Marginal tax rate
45.0%
Average tax rate
40.1%
59.9%
Net pay
40.1%
Total tax
Total tax
Net pay
The Taxberg
1,203 元
Net pay
66.60 元
Tax the employer pays
804 元
Tax you pay
Total tax paid
871 元
Did you know your employer also pays tax on your salary? It costs the employer 66.60 元 to pay you 2,007 元. In other words, every time you spend 10 元 of your hard-earned money, 4.34 元 goes to the government.
Real tax rate
42.0%
So, with you and the employer both paying tax, what used to be a 40.1% tax rate now rises to 42.0%, meaning your real tax rate is actually 1.9% higher than what it seemed at first.
Summary
If you make 4,174,560 元 a year living in the region of Beijing, China, you will be taxed 1,673,281 元. That means that your net pay will be 2,501,279 元 per year, or 208,440 元 per month. Your average tax rate is 40.1% 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 2508783
39.9%
1
Beijing
CNY 2501279
40.1%
2
Guangzhou
CNY 2500500
40.1%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 2476748
40.7%
1
Canada
CNY 2108895
49.5%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
CNY 3700432
11.4%
1
Brazil
CNY 3030611
27.4%
2
Costa Rica
CNY 2884030
30.9%
3
Panama
CNY 2834565
32.1%
4
Mexico
CNY 2748304
34.2%
5
Puerto Rico
CNY 2739941
34.4%
6
Uruguay
CNY 2732622
34.5%
7
Colombia
CNY 2716727
34.9%
8
Argentina
CNY 2713414
35.0%
9
Chile
CNY 2680962
35.8%
10
Peru
CNY 2613850
37.4%
11
Ecuador
CNY 2479988
40.6%
12
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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.