Freelance Labor Income Tax — Tax Rate Calculator & Before/After-Tax Conversion
Convert labor income before and after tax
How It Is Calculated
Freelance labor income tax is levied on income from providing independent services. Rule: if income is 4,000 CNY or less, deduct 800 CNY; if above 4,000 CNY, deduct 20%. The taxable income is then taxed in tiers of 20%, 30% and 40%. This tool converts in both directions with 0.01 CNY precision.
More Tools
When calculating labor income tax, you can compare salary tax with the Personal Income Tax Calculator; for document formatting, use RMB Uppercase.
FAQ
How is freelance labor income tax calculated?
Rule: if income is 4,000 CNY or less, deduct 800 CNY; if above 4,000 CNY, deduct 20%. The resulting taxable income is taxed on a three-tier progressive scale: up to 20,000 CNY at 20%, 20,000–50,000 CNY at 30%, and above 50,000 CNY at 40%.
What is the difference between labor income and salary?
Salary is employment income taxed by the cumulative withholding method; labor income is earned by independent individuals providing services and is taxed per payment. They use different deduction standards and rate tables, and are settled together in the annual reconciliation.
Which calculation modes does this tool support?
Two modes: pre-tax → after-tax (given the total labor income, compute the net amount after tax) and after-tax → pre-tax (given the net amount, back-calculate the gross labor fee to invoice).
How can freelancers plan taxes reasonably?
Keep complete service contracts and invoices; watch whether annual income exceeds the tax threshold for the annual reconciliation; and spread income over time to avoid rate jumps from a single high-income month. For salary tax, use the Personal Income Tax Calculator.