Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
40,625 元
Income Tax
- 6,986 元
Housing Fund
- 1,913 元
Pension
- 1,129 元
Medical Insurance
- 282 元
Unemployment
- 70.55 元
Total tax
- 10,380 元
Net pay
* 30,245 元
Marginal tax rate
35.0%
Average tax rate
25.6%
74.4%
Net pay
25.6%
Total tax
Total tax
Net pay
The Taxberg
30,245 元
Net pay
5,772 元
Tax the employer pays
10,380 元
Tax you pay
Total tax paid
16,153 元
Did you know your employer also pays tax on your salary? It costs the employer 5,772 元 to pay you 40,625 元. In other words, every time you spend 10 元 of your hard-earned money, 3.98 元 goes to the government.
Real tax rate
34.8%
So, with you and the employer both paying tax, what used to be a 25.6% tax rate now rises to 34.8%, meaning your real tax rate is actually 9.2% higher than what it seemed at first.
Summary
If you make 975,000 元 a year living in the region of Beijing, China, you will be taxed 249,126 元. That means that your net pay will be 725,874 元 per year, or 60,489 元 per month. Your average tax rate is 25.6% and your marginal tax rate is 35.0%. 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 35 元, hence, your net pay will only increase by 65 元.
Bonus Example
A 1,000 元 bonus will generate an extra 650 元 of net incomes. A 5,000 元 bonus will generate an extra 3,250 元 of net incomes.
Compare average tax
Tax per region
Region
Net pay
Average tax
Rank
Shanghai
CNY 734742
24.6%
1
Beijing
CNY 725874
25.6%
2
Guangzhou
CNY 724954
25.6%
3
North America
Country 
Net pay
Average tax
Rank
USA
CNY 673417
30.9%
1
Canada
CNY 613293
37.1%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
CNY 832966
14.6%
1
Kazakhstan
CNY 828361
15.0%
2
Singapore
CNY 801933
17.8%
3
Taiwan
CNY 759459
22.1%
4
Thailand
CNY 729877
25.1%
5
China
CNY 725874
25.6%
6
Indonesia
CNY 685952
29.7%
7
South Korea
CNY 676829
30.6%
8
New Zealand
CNY 671702
31.1%
9
Pakistan
CNY 666047
31.7%
10
Japan
CNY 661622
32.1%
11
Philippines
CNY 655772
32.7%
12
Malaysia
CNY 655745
32.7%
13
Australia
CNY 655610
32.8%
14
Vietnam
CNY 645606
33.8%
15
India
CNY 527395
45.9%
16
Show more
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
CNY 868562
10.9%
1
Costa Rica
CNY 736326
24.5%
2
Chile
CNY 727086
25.4%
3
Uruguay
CNY 720895
26.1%
4
Colombia
CNY 714887
26.7%
5
Brazil
CNY 710930
27.1%
6
Panama
CNY 698859
28.3%
7
Puerto Rico
CNY 672667
31.0%
8
Mexico
CNY 664551
31.8%
9
Ecuador
CNY 654751
32.9%
10
Peru
CNY 654119
32.9%
11
Argentina
CNY 633700
35.0%
12
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Africa
Country 
Net pay
Average tax
Rank
Angola
CNY 710563
27.1%
1
Kenya
CNY 686158
29.6%
2
Nigeria
CNY 664092
31.9%
3
Ivory Coast
CNY 656664
32.7%
4
Ghana
CNY 652163
33.1%
5
Mozambique
CNY 649715
33.4%
6
South Africa
CNY 608074
37.6%
7
Morocco
CNY 607150
37.7%
8
Cameroon
CNY 602525
38.2%
9
Zambia
CNY 601733
38.3%
10
Senegal
CNY 593257
39.2%
11
Uganda
CNY 562041
42.4%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
CNY 926250
5.0%
1
Qatar
CNY 926250
5.0%
2
Bahrain
CNY 900758
7.6%
3
Kuwait
CNY 898379
7.9%
4
Oman
CNY 897000
8.0%
5
Saudi Arabia
CNY 877500
10.0%
6
Egypt
CNY 733245
24.8%
7
Lebanon
CNY 732616
24.9%
8
Israel
CNY 641472
34.2%
9
Turkey
CNY 569233
41.6%
10
Show more
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.