Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
4,013 元
Income Tax
- 1,668 元
Housing Fund
- 22.07 元
Pension
- 13.03 元
Medical Insurance
- 3.26 元
Unemployment
- 0.81 元
Total tax
- 1,707 元
Net pay
* 2,306 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
2,306 元
Net pay
66.60 元
Tax the employer pays
1,707 元
Tax you pay
Total tax paid
1,774 元
Did you know your employer also pays tax on your salary? It costs the employer 66.60 元 to pay you 4,013 元. In other words, every time you spend 10 元 of your hard-earned money, 4.42 元 goes to the government.
Real tax rate
43.5%
So, with you and the employer both paying tax, what used to be a 42.5% tax rate now rises to 43.5%, meaning your real tax rate is actually 1% higher than what it seemed at first.
Summary
If you make 8,347,040 元 a year living in the region of Beijing, China, you will be taxed 3,550,897 元. That means that your net pay will be 4,796,143 元 per year, or 399,679 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.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Beijing
CNY 4796143
42.5%
1
Shanghai
CNY 4803647
42.5%
2
Guangzhou
CNY 4795364
42.6%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 4702439
43.7%
1
Canada
CNY 4047864
51.5%
2
Middle East
Country 
Net pay
Average tax
Rank
Kuwait
CNY 8270419
0.9%
1
Saudi Arabia
CNY 8243040
1.3%
2
Bahrain
CNY 8199077
1.8%
3
United Arab Emirates
CNY 7929688
5.0%
4
Qatar
CNY 7929688
5.0%
5
Oman
CNY 7679277
8.0%
6
Egypt
CNY 6262275
25.0%
7
Lebanon
CNY 6261646
25.0%
8
Turkey
CNY 4862783
41.7%
9
Israel
CNY 4350387
47.9%
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.