🇨🇳 Income Tax Calculator China 2026
Calculate your income tax in China (Shanghai): Progressive Income Tax
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Effective rate: 0%
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Social insurance: ~10.5% employee + ¥60,000 standard deduction
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Monthly: ¥0 (~0 EUR~$0)
Income Distribution
Effective total rate: 0%
1. IIT - Individual Income Tax (~¥19,080)
Progressive rates from 3% to 45%
Standard deduction: ¥60,000/year
Taxable income: ¥140,000
Total IIT: ~¥19,080
2. Social Insurance (~¥21,000)
Pension (8%): ¥16,000
Medical (2%): ¥4,000
Unemployment (0.5%): ¥1,000
Total: ~¥21,000
That is ~¥13,327/month | Effective rate: ~20%
Employee Contributions
- Pension: 8%
- Medical insurance: 2%
- Unemployment: 0.5%
Employer
- Pension: 16%
- Medical: 9.5%
- + Work injury, maternity
🇨🇳 Complete Guide: Working in China
Why use this Chinese tax simulator? China reformed its Individual Income Tax (IIT) in 2019, introducing a cumulative withholding method where your effective monthly tax rate increases throughout the year. This simulator accounts for the standard deduction of CNY 60,000/year, the 7-bracket progressive system (3% to 45%), and mandatory social insurance contributions (Five Insurances and Housing Fund) that vary by city.
China applies a progressive Individual Income Tax (IIT) with rates ranging from 3% to 45%. Since 2019, expatriates are subject to the same rules as Chinese residents, with special deductions available. Shanghai and major cities offer attractive salaries but a relatively high cost of living.
2026 IIT Brackets (Employment Income)
Applicable after standard deduction of ¥5,000/month (¥60,000/year)
| Annual Taxable Income (¥) | Rate | Quick Deduction | USD Equiv. |
|---|---|---|---|
| 0 - ¥36,000 | 3% | ¥0 | 0 - $5,000 |
| ¥36,000 - ¥144,000 | 10% | ¥2,520 | $5k - $20k |
| ¥144,000 - ¥300,000 | 20% | ¥16,920 | $20k - $42k |
| ¥300,000 - ¥420,000 | 25% | ¥31,920 | $42k - $59k |
| ¥420,000 - ¥660,000 | 30% | ¥52,920 | $59k - $93k |
| ¥660,000 - ¥960,000 | 35% | ¥85,920 | $93k - $135k |
| Above ¥960,000 | 45% | ¥181,920 | > $135k |
Special Deductions (Since 2019)
In addition to the ¥5,000/month standard deduction, you can deduct:
Monthly Deductions
- Children's education: ¥1,000/child
- Continuing education: ¥400
- Rent (major city): ¥1,500
- Mortgage interest: ¥1,000
- Elderly care: ¥2,000
For Expatriates
- Housing allowance: tax-exempt
- Children's school fees: exempt
- Language training costs: exempt
- Home leave (1 trip/year): exempt
Social Contributions Breakdown (Shanghai)
Employee Share (~10.5%)
- Basic pension: 8%
- Medical insurance: 2%
- Unemployment insurance: 0.5%
- Housing Fund: 7% (optional for expats)
Employer Share (~31%)
- Pension: 16%
- Medical insurance: 9.5%
- Unemployment: 0.5%
- Work injury: 0.16-1.52%
- Maternity: 1%
- Housing Fund: 7%
Note: Expatriates may be exempt from Housing Fund depending on their contract.
Tax Residency and the 183-Day Rule
Important Rules
- Less than 183 days/year: Tax only on China-sourced income
- 183 days or more: Tax resident - taxed on worldwide income
- 6-Year Rule: If present 183+ days for 6 consecutive years AND without a single trip exceeding 30 consecutive days, worldwide income becomes taxable. "Reset" possible with a trip >30 days.
Tip: Many expats leave China for more than 30 consecutive days before year 6 to avoid worldwide taxation.
Work Visa Types
China vs France Comparison
| Criteria | 🇨🇳 China | 🇫🇷 France |
|---|---|---|
| Maximum income tax rate | 45% | 45% |
| Employee social contributions | ~10.5% | ~22% |
| Standard deduction | ¥60,000/year (~$8,400) | 10% (capped) |
| Cost of living (Shanghai vs Paris) | -15-20% | Reference |
| IT salary (senior) | ¥400-800k (~$56-112k) | $55-90k |
| Tax treaty with France | Yes (1984) | - |
Why Choose China?
Important Considerations
- Great Firewall: VPN needed to access Google, Facebook, WhatsApp, etc.
- Language: Mandarin is essential outside major international companies
- Non-portable pension: Contributions lost if you leave (no totalization agreement with many countries)
- Currency controls: Limits on money transfers abroad (~$50k/year)
- Air pollution: Air quality issues in some cities
- Employer-tied visa: Losing your job = losing your visa (typically 30 days to leave)
China applies a progressive income tax system reformed in 2019. Compare with other major Asian economic powers.