How Much Income Tax Do I Pay in China?
Personal income tax in China is paid on:
- Income from wages and salaries
- Self employment income
- Income from contracted or leased businesses
- Income from payments for personal services
- Income from royalties
- Income from interest, dividends
- Income from property rentals
- Income from property transfers
- Income from other sources specified as taxable by the Chinese government
China has nine income tax bands. These are:
Income Tax Bands in China
| Band |
Income |
Tax Rate (%) |
| 1 |
500 yuan or less |
5% |
| 2 |
500 to 2,000 yuan |
10% |
| 3 |
2,000 to 5,000 yuan |
15% |
| 4 |
5,000 to 20,000 yuan |
20% |
| 5 |
20,000 to 40,000 yuan |
25% |
| 6 |
40,000 to 60,000 yuan |
30% |
| 7 |
60,000 to 80,000 yuan |
35% |
| 8 |
80,000 to 100,000 yuan |
40% |
| 9 |
All income above 100,000 yuan |
45% |
If you are a foreign worker - not a Chinese citizen - the above rates apply after an initial tax deduction of 4,800 yuan each month.
