Why is my take-home pay lower later in the year?

Salary tax in China is withheld cumulatively: each month the year-to-date taxable income is taxed on the annual brackets (3% to 45%) and the tax already withheld is subtracted. As year-to-date income passes 36,000, 144,000 CNY and so on, the rate steps up, so later months have more tax withheld. The annual total is the same; it is just spread unevenly.

Should my annual bonus be taxed separately or combined?

It depends on your salary and deductions. Taxed separately, the bonus is divided by 12 to find a monthly rate and taxed at that single rate — usually better when your salary is already in a higher bracket. If your deductions leave little taxable salary, combining it with comprehensive income can be cheaper. The separate option is available until 31 December 2027 and you can choose at the annual reconciliation; the calculator compares both.

Are expats taxed the same way?

Foreigners who are tax residents (in China 183 days or more in a year) pay IIT on comprehensive income with the same brackets, basic deduction and cumulative withholding. Until the end of 2027 expats may instead claim tax-exempt housing, language training and children’s education allowances, but not both those allowances and the special additional deductions — this calculator models the special deductions. Tax treaties and non-resident rules can change the result, so check with your employer or a tax adviser.

What are the social insurance and housing fund contributions?

Employees typically pay 8% of the contribution base for pension, about 2% for medical insurance, 0.3%–0.5% for unemployment and 5%–12% for the housing fund. The base is your salary, but clamped between minimum and maximum limits that each city sets every year; enter your city’s figures for an accurate result. These contributions are deducted before tax.

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🧾China Income Tax Calculator (IIT) - Salary After Tax, Bonus Tax & Deductions

Working in China and wondering what your salary is after tax? Enter your monthly gross pay and the calculator deducts the employee share of social insurance (pension 8%, medical 2%, unemployment 0.5%) and the housing fund, using contribution base limits you can adjust for your city. It then applies the 5,000 CNY monthly basic deduction and any special additional deductions you qualify for under the 2023 rules — children’s education and care of children under 3 (2,000 each per month), supporting elderly parents (3,000), mortgage interest (1,000) or rent (1,500 / 1,100 / 800 depending on the city), continuing education and private pension contributions. Tax is withheld cumulatively, so the month-by-month table shows how the rate steps up during the year and what you take home each month. Add an annual bonus to compare taxing it separately with combining it with salary, with a warning if it falls in a range where a bigger bonus leaves you with less. There are also modes for service fees (劳务报酬) and for working out the gross salary needed for a target take-home pay.

Free · No sign-up · Runs in your browserLast updated: 2026-10-26

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How to use China Income Tax Calculator (IIT)

1Enter your monthly gross salary, annual bonus and the month it is paid
2Adjust social insurance and housing fund rates and base limits for your city, and tick the deductions that apply
3Read the take-home pay, annual IIT, bonus comparison and 12-month table — or switch to service fees or net-to-gross

FAQ

Why is my take-home pay lower later in the year?: Salary tax in China is withheld cumulatively: each month the year-to-date taxable income is taxed on the annual brackets (3% to 45%) and the tax already withheld is subtracted. As year-to-date income passes 36,000, 144,000 CNY and so on, the rate steps up, so later months have more tax withheld. The annual total is the same; it is just spread unevenly.
Should my annual bonus be taxed separately or combined?: It depends on your salary and deductions. Taxed separately, the bonus is divided by 12 to find a monthly rate and taxed at that single rate — usually better when your salary is already in a higher bracket. If your deductions leave little taxable salary, combining it with comprehensive income can be cheaper. The separate option is available until 31 December 2027 and you can choose at the annual reconciliation; the calculator compares both.
Are expats taxed the same way?: Foreigners who are tax residents (in China 183 days or more in a year) pay IIT on comprehensive income with the same brackets, basic deduction and cumulative withholding. Until the end of 2027 expats may instead claim tax-exempt housing, language training and children’s education allowances, but not both those allowances and the special additional deductions — this calculator models the special deductions. Tax treaties and non-resident rules can change the result, so check with your employer or a tax adviser.
What are the social insurance and housing fund contributions?: Employees typically pay 8% of the contribution base for pension, about 2% for medical insurance, 0.3%–0.5% for unemployment and 5%–12% for the housing fund. The base is your salary, but clamped between minimum and maximum limits that each city sets every year; enter your city’s figures for an accurate result. These contributions are deducted before tax.