Personal Income Tax Calculator
2026Cumulative withholding · real-time take-home pay
Last updated: 2026-07
Enter the monthly salary; multiple months are computed by cumulative withholding
Contribution base; if blank, uses the salary bounded by the city limits
Housing fund rate
Special additional deductions
Enter the annual out-of-pocket amount within the medical insurance catalogue; the deductible = the part above 15,000 CNY, capped at 80,000 CNY (computed automatically).
Tip: child education can be fully deducted by one parent at 2,000 CNY/month or split at 1,000 CNY each; for elderly care, non-only children share up to 1,500 CNY/month each. Filing early reduces withholding from the start.
Private pension and tax-advantaged health insurance are “other deductions”, stacked on top of the special additional deductions above; amounts are capped at the annual limits.
The separate-taxation benefit runs through 2027-12-31
Save up to 3 schemes to compare across cities / salary plans.
Individual Income Tax Rate Table (annual cumulative withholding)
| Tier | Annual taxable income | Rate | Quick deduction |
|---|---|---|---|
| 1 | 0 – 36,000 CNY | 3% | 0 CNY |
| 2 | 36,000 – 144,000 CNY | 10% | 2,520 CNY |
| 3 | 144,000 – 300,000 CNY | 20% | 16,920 CNY |
| 4 | 300,000 – 420,000 CNY | 25% | 31,920 CNY |
| 5 | 420,000 – 660,000 CNY | 30% | 52,920 CNY |
| 6 | 660,000 – 960,000 CNY | 35% | 85,920 CNY |
| 7 | 960,000 – above | 45% | 181,920 CNY |
How to Calculate the Year-End Bonus Most Efficiently
A year-end bonus can be taxed separately (divide by 12 and use the monthly rate table) or merged into the year’s comprehensive income. When the monthly salary already falls in a high bracket, separate taxation avoids jumping brackets after merging; when the salary is low and merging does not jump brackets, merging may be cheaper. This tool compares both plans’ annual tax and marks the better one. Note the benefit runs through Dec 31, 2027, after which the bonus is merged. In addition, near the six thresholds (36,000 / 144,000 / 300,000 / 420,000 / 660,000 / 960,000 CNY) there is an “invalid range” where earning 1 CNY more can cost thousands more in tax — this tool flags it automatically.
Special Additional Deductions (2026 standards)
The following 7 special additional deductions are filed in the tax app, deducted at a fixed monthly amount or by actual cost; housing loan interest and housing rent are mutually exclusive. Filing early reduces withholding from the start.
Child education
2,000 CNY/month per child (after the increase), from age 3 through full-time education; one parent may deduct 100%, or both parents 50% each (1,000 CNY each).
Infant care under 3
2,000 CNY/month per infant under 3, which can be claimed alongside child education; the sharing rules are the same as child education.
Elderly care
3,000 CNY/month for an only child; non-only children share with siblings, up to 1,500 CNY/month each and 3,000 CNY/month in total.
Housing loan interest
1,000 CNY/month for first-home loan interest, for up to 240 months; mutually exclusive with housing rent.
Housing rent
Tiered by city size: 1,500 CNY/month for municipalities/provincial capitals/separately-planned cities, 1,100 CNY/month for cities with over 1 million registered urban residents, and 800 CNY/month for others; not available if you or your spouse own a home in the main work city.
Continuing education
400 CNY/month for degree/diploma continuing education (up to 48 months for the same degree); for vocational qualification continuing education, a one-time 3,600 CNY deduction in the year the certificate is obtained.
Serious illness medical
The part of out-of-pocket medical expenses within the medical insurance catalogue exceeding 15,000 CNY is deducted up to a cap of 80,000 CNY, calculated annually, claimable by the individual, spouse or a parent of a minor child.
Annual Individual Income Tax Reconciliation
The annual reconciliation runs from March to June of the following year. Tax is withheld monthly under the cumulative method; at year end all comprehensive income is aggregated, minus the basic deduction, special deductions and special additional deductions, to compute the annual refund or payment due: over-withheld tax can be refunded, under-withheld must be paid. The monthly withholding shown here is that prepayment; the more your salary fluctuates, the more likely bracket jumps and reconciliation differences occur.
Income Tax Formulas (Cumulative Withholding)
Individual income tax is prepaid monthly under the “cumulative withholding method” and settled in the annual reconciliation. The core formulas are:
Cumulative taxable income for withholding
= cumulative income − cumulative tax-exempt income − cumulative basic deduction (5,000 CNY × months elapsed this year) − cumulative special deductions (the employee’s “three insurances and one fund”) − cumulative special additional deductions − cumulative other deductions determined by law
Tax to withhold this month
= (cumulative taxable income × withholding rate − quick deduction) − cumulative tax relief − cumulative tax already withheld
Because the rate is set on the “annual cumulative” basis, if salary is low early and high later, or a month has a large bonus, the monthly rate may jump brackets — which is why monthly withholding differs and why “similar salaries can yield different tax”. At year end, the whole year’s comprehensive income is plugged into the same annual rate table: over-withholding is refunded and under-withholding is paid. After choosing a city, this tool estimates the employee’s social insurance and fund by local base limits (the employee rates — pension 8%, medical 2%, unemployment 0.5% — are essentially uniform nationwide; differences lie mainly in the base limits).
Worked Examples (at 2026 rates)
Case 1: Ordinary employee
Monthly salary 12,000 CNY, housing fund 12%, child education 2,000 + housing rent 1,500 CNY/month filed. Annual income tax is about 288 CNY and take-home about 111,312 CNY (3% bracket).
Case 2: High earner
Monthly salary 30,000 CNY (Beijing), housing fund 12%, child education 2,000 + elderly care 3,000 CNY/month filed. After cumulative withholding the 20% bracket applies: annual income tax about 14,880 CNY and take-home about 264,120 CNY.
Case 3: Year-end bonus comparison
Annual salary 240,000 CNY (monthly 20,000) + year-end bonus 80,000, housing fund 12%, child education 2,000 + housing rent 1,500 CNY/month. With the bonus taxed separately the annual tax is about 13,670 CNY, and merged into comprehensive income about 15,880 CNY — separate taxation saves about 2,210 CNY. The inputs above are illustrative; use your own data in the tool.
Is severance pay (N+1) taxable?
A one-time compensation from terminating a labor contract (including economic compensation and living subsidies) is exempt from individual income tax up to 3 times the local average employee wage of the previous year; the part above 3 times is not merged into the year’s comprehensive income but taxed separately under the comprehensive income rate table, subject to the tax authority or employer’s actual withholding.
How the exemption is calculated
Exemption = 3 × the local average employee wage of the previous year. For example, if the local average wage is 120,000 CNY, tax is exempt up to 360,000 CNY and only the excess is taxed separately; refer to the local statistics bureau for the exact average wage.
How to Pay the Year-End Bonus Most Efficiently
During the separate-taxation benefit period (through 2027-12-31), the bonus amount directly affects the tax burden. The key strategy is to avoid the six rate thresholds (36,000 / 144,000 / 300,000 / 420,000 / 660,000 / 960,000 CNY): earning 1 CNY more can jump a bracket and cost thousands more. A classic trap: at 36,000 CNY tax is 1,080 and take-home 34,920; at 36,001 CNY the jump raises tax to 3,390.1 and take-home drops to 32,610.9 — 1 CNY more loses about 2,309 CNY. This tool’s “year-end bonus” module automatically compares separate taxation with merging, and flags whether the amount falls in the invalid range.
Separate taxation or merging
When the salary already falls in a high bracket, separate bonus taxation avoids an overall bracket jump after merging; when the salary is low, merging part of the bonus may be cheaper. Use this tool to switch between “separate/merged” and see the annual tax difference directly.
How Take-Home Changes After a Raise
After a raise, cumulative withholding pushes later months’ cumulative taxable income into a higher bracket, so the rate rises and the take-home share falls. For example, if the monthly salary rises from 10,000 to 20,000, the annual cumulative taxable income crosses the 144,000 CNY threshold from the 10% bracket into the 20% bracket. Switch to “varies by month” mode in this tool and enter the low-salary months before the raise and the high-salary months after it to see the bracket jump and the change in annual take-home — handy for calculating the real take-home when negotiating pay.
Related Income Tax Tools
After estimating salary tax, use the Salary Calculator to estimate take-home pay and insurance; if you have a mortgage, use the Mortgage Calculator for monthly payments and compare with the housing loan interest deduction (1,000 CNY/month); for part-time or labor income, use the Labor Income Tax Calculator to compare the burden; for document amounts, use RMB Uppercase. To see how much the annual reconciliation may refund, this page has a built-in estimator — no need to navigate away.
FAQ
Which is better for a year-end bonus: separate taxation or merging?
There are two ways: separate taxation (divide by 12 and use the monthly rate table) or merging into the year’s comprehensive income. When the salary already falls in a high bracket, separate taxation avoids a bracket jump after merging; when the salary is low, merging may be cheaper. This tool computes both plans and marks the better one. The benefit runs through Dec 31, 2027.
What are the 2026 special additional deduction standards?
Current standards: child education 2,000 CNY/month (per child); infant care under 3, 2,000 CNY/month (per child); elderly care 3,000 CNY/month (only child); continuing education 400 CNY/month (degree); housing loan interest 1,000 CNY/month; housing rent up to 1,500 CNY/month (three tiers of 800/1,100/1,500 by city size; this tool estimates at the cap); serious illness deducted annually by actual cost (the part above 15,000 CNY, capped at 80,000). Loan interest and rent cannot both be claimed.
How do I back out the pre-tax salary from take-home pay?
Switch to the “after-tax to pre-tax” mode, enter the monthly take-home amount, and with the insurance/fund and special additional deductions the tool back-calculates the pre-tax salary using the cumulative withholding tiered rates. If you enter a year-end bonus, it also back-calculates take-home including the bonus. Useful for deriving contract salary from take-home or comparing offers.
Why can the monthly tax differ under cumulative withholding?
Cumulative withholding sets the rate on the year’s cumulative taxable income. If the salary is the same each month, the monthly tax is equal; if one month is markedly higher (e.g. with a bonus), the cumulative income crosses a bracket, the rate rises, and that month and later months’ withholding increases, settled later in the annual reconciliation. The “varies by month” mode demonstrates this jump.
Can housing loan interest and housing rent be deducted together?
No. Housing loan interest and housing rent are the same category of housing expense — only one can be claimed. This tool makes them mutually exclusive to keep the result compliant.
How is social insurance and housing fund counted for income tax?
The employee’s share (pension 8%, medical 2%, unemployment 0.5%, housing fund 5%–12%) is deducted before tax, lowering the taxable income. After choosing a city, this tool estimates the monthly employee contribution by local base limits. Employee rates are essentially uniform nationwide; differences lie mainly in the base limits.
Are social insurance bases the same across cities?
No. Each city sets base limits (usually 60%–300% of the local average wage) and different housing fund rates. This tool includes base limits and default fund rates for 40+ major cities; after choosing a city it estimates with the upper cap and lower floor applied automatically.
Can earning slightly more bonus result in less take-home?
Yes, possibly. With separate taxation (÷12 table), near the six thresholds (36,000 / 144,000 / 300,000 / 420,000 / 660,000 / 960,000 CNY) there is an “invalid range”: 1 CNY more can jump a bracket and cost thousands more in tax. The bonus module detects whether the amount falls in the invalid range and shows how much more take-home you’d get by dropping to the threshold.
What is the 2026 individual income tax threshold?
The current threshold is 5,000 CNY/month, corresponding to a 60,000 CNY annual basic deduction. Only the salary after deducting insurance/fund, special deductions and special additional deductions counts as taxable income. This tool automatically uses 5,000 CNY/month (60,000 CNY/year).
Is income tax calculated monthly or annually?
Your employer withholds monthly under the “cumulative withholding method”: each month’s rate is set on the year’s cumulative taxable income, so the monthly tax can differ when salary fluctuates. At year end the annual reconciliation aggregates the whole year’s comprehensive income, refunding or collecting the difference. The “varies by month” mode demonstrates the bracket jumps.
Can the result be used directly for filing?
This tool is for quick estimation and plan comparison to help you understand the tax burden and take-home pay. For actual filing, rely on the Natural Person Electronic Tax Bureau (tax app) reconciliation result, and file special additional deductions truthfully in the app.
Who is this income tax calculator for?
It suits individuals estimating take-home pay, comparing tax across salary or bonus plans, or planning annual taxes, as well as HR staff and freelancers comparing labor-income tax. For complex cases such as business income or equity incentives, consult a professional.
Why does the tax on my payslip differ from the calculator?
Possible reasons: (1) your employer withheld based on last month’s actual salary, a different scope from this tool; (2) whether the special additional deductions have been filed and taken effect with the employer (not filed means no deduction); (3) the employer’s insurance/fund base may differ from what you entered; (4) differences in how the separate bonus tax is withheld. This tool computes the annual basis by cumulative withholding with your deductions and base, so you can check item by item against the payslip.
How is tax calculated if I joined mid-year?
If you join mid-year, the basic deduction is “5,000 CNY × months actually employed”. Switch to “varies by month” mode, fill only the months actually paid and leave the rest blank to demonstrate cumulative withholding and bracket jumps for the real number of months.
Why does my tax suddenly rise at year end?
Under cumulative withholding the rate follows the year’s cumulative income. If the early months are low and later months are markedly higher (salary or bonus), the cumulative taxable income crosses a bracket, the rate rises, and that month and later months’ withholding increases noticeably. The “varies by month” mode demonstrates this jump point.