{"id":7603,"date":"2020-03-13T16:18:27","date_gmt":"2020-03-13T22:18:27","guid":{"rendered":"https:\/\/teachingnomad.com\/teaching-abroad\/income-tax-in-china\/"},"modified":"2025-02-06T11:17:11","modified_gmt":"2025-02-06T18:17:11","slug":"income-tax-in-china","status":"publish","type":"post","link":"https:\/\/www.teachingnomad.com\/blog\/teaching-abroad\/income-tax-in-china\/","title":{"rendered":"Income Tax in China"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”3.22″ da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row admin_label=”row” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.6.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”]<\/p>\n

Calculating taxes can be a big part of budgeting, especially if you’re moving to a foreign country for the first time. Check out this easy-to-use tax chart and tax calculator!<\/span><\/p>\n

<\/span><\/a><\/p>\n

The People\u2019s Republic of China uses a progressive tax system, with tax rates ranging from three to 45 percent. A progressive system means that tax brackets increase with respect to your taxable income.<\/span><\/p>\n

The tax year ends on December 31st each year.<\/span><\/p>\n

Tax brackets as of 2024:<\/span><\/strong><\/span><\/h2>\n

\"\"<\/span><\/strong><\/span><\/p>\n

Calculating your tax:<\/span><\/strong><\/span><\/h2>\n

Download our easy-to-use tax calculator if you have Microsoft Excel, and figure out approximately what you’ll be paying in income taxes!<\/span><\/span><\/p>\n

 <\/p>\n

Download and use the tax calculator<\/a><\/p>\n

 <\/p>\n

Understanding income taxes:<\/span><\/strong><\/span><\/h2>\n

Foreigners who legally work in China<\/a> enjoy an initial tax deduction of 5,000 RMB per month. Only income over this amount is taxed. Furthermore, you should note that not all of your salary is within the same tax bracket.<\/span><\/p>\n

For example, as of 2020, the first 1,500 RMB over your initial deduction of<\/span> 5,000 RMB is taxed at 3% and then your next 3,000 RMB is taxed at the 10% bracket, and so on.<\/span><\/span><\/p>\n

To make this calculation easier, use the quick deduction when finding out how much tax you owe each month. To calculate how much you owe in tax each month, use the following formulas:<\/span><\/p>\n

Taxable Income = Gross Salary \u2013 5,000 RMB<\/span><\/strong><\/span><\/p>\n

IIT = Taxable Income * Tax Rate \u2013 Quick Deduction<\/span><\/strong><\/span><\/p>\n

Net Salary = Gross Salary \u2013 IIT<\/span><\/strong><\/span><\/p>\n

Example:<\/span><\/span><\/strong><\/h3>\n

If you earn 10,000 RMB a month:<\/span><\/strong><\/span><\/p>\n

10,000 RMB – 5,000 RMB = <\/span>5,000 RMB of taxable income (TI)<\/span><\/span><\/p>\n

5,000 RMB TI * 0.1 tax rate – 210 RMB quick deduction = <\/span>290 RMB IIT<\/span><\/span><\/p>\n

10,000 RMB gross salary – 290 IIT = <\/span>9,710 RMB net salary<\/span><\/span><\/p>\n

This results in an effective tax rate of 2.90%.<\/span><\/strong><\/span><\/p>\n

 <\/p>\n

Remember, some employers give additional tax benefits such as a housing allowance, which is a tax-free portion of your salary if spent on rent. This lowers your effective tax rate even more.<\/span><\/p>\n

<\/span><\/p>\n

Check out the tax info sheet:<\/strong><\/span><\/h2>\n

\"Income<\/span><\/a><\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

Learn about calculating taxes in China, and budget for the future!<\/p>\n","protected":false},"author":5,"featured_media":7604,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"\r\n

Calculating taxes can be a big part of budgeting, especially if you're moving to a foreign country for the first time. Check out this easy-to-use tax chart and tax calculator!<\/span><\/p>\r\n\r\n

 <\/strong><\/span><\/p>\r\n

Download the income tax info sheet here:<\/strong><\/span><\/p>\r\n

{loadmoduleid 497}<\/p>\r\n\r\n

The People\u2019s Republic of China uses a progressive tax system, with tax rates ranging from three to 45 percent. A progressive system means that tax brackets increase with respect to your taxable income.<\/span><\/p>\r\n

The tax year ends on December 31st each year.<\/span><\/p>\r\n\r\n

Tax brackets as of 2020:<\/span><\/strong><\/span><\/h2>\r\n

\"\"<\/span><\/strong><\/span><\/p>\r\n\r\n

Calculating your tax:<\/span><\/strong><\/span><\/h2>\r\n

Download our easy-to-use tax calculator if you have Microsoft Excel, and figure out approximately what you'll be paying in income taxes!<\/span><\/span><\/p>\r\n

https:\/\/www.teachingnomad.com\/images\/documents\/2020 Tax Calculator.xlsx<\/a><\/span><\/span><\/p>\r\n\r\n

Download the tax calculator!<\/span><\/a><\/div>\r\n\r\n\r\n

Understanding income taxes:<\/span><\/strong><\/span><\/h2>\r\n

Foreigners who legally work in China enjoy an initial tax deduction of 5,000 RMB per month. Only income over this amount is taxed. Furthermore, you should note that not all of your salary is within the same tax bracket.<\/span><\/p>\r\n

For example, as of 2020, the first 1,500 RMB over your initial deduction of<\/span> 5,000 RMB is taxed at 3% and then your next 3,000 RMB is taxed at the 10% bracket, and so on.<\/span><\/span><\/p>\r\n

To make this calculation easier, use the quick deduction when finding out how much tax you owe each month. To calculate how much you owe in tax each month, use the following formulas:<\/span><\/p>\r\n\r\n

Taxable Income = Gross Salary \u2013 5,000 RMB<\/span><\/strong><\/span><\/p>\r\n

IIT = Taxable Income * Tax Rate \u2013 Quick Deduction<\/span><\/strong><\/span><\/p>\r\n

Net Salary = Gross Salary \u2013 IIT<\/span><\/strong><\/span><\/p>\r\n\r\n

Example:<\/span><\/span><\/strong><\/h3>\r\n

If you earn 10,000 RMB a month:<\/span><\/strong><\/span><\/p>\r\n

10,000 RMB - 5,000 RMB = <\/span>5,000 RMB of taxable income (TI)<\/span><\/span><\/p>\r\n

5,000 RMB TI * 0.1 tax rate - 210 RMB quick deduction = <\/span>290 RMB IIT<\/span><\/span><\/p>\r\n

10,000 RMB gross salary - 290 IIT = <\/span>9,710 RMB net salary<\/span><\/span><\/p>\r\n\r\n

This results in an effective tax rate of 2.90%.<\/span><\/strong><\/span><\/p>\r\n

<\/p>\r\n

Remember, some employers give additional tax benefits such as a housing allowance, which is a tax-free portion of your salary if spent on rent. This lowers your effective tax rate even more.<\/span><\/p>\r\n\r\n\r\n\r\n","_et_gb_content_width":""},"categories":[21,43],"tags":[],"yoast_head":"\nIncome Tax in China - Teaching Nomad<\/title>\n<meta name=\"description\" content=\"Understand how income tax works in China compared to your home country. Check out our tax calculator to play around with the numbers!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.teachingnomad.com\/blog\/china\/income-tax-in-china\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Income Tax in China - Teaching Nomad\" \/>\n<meta property=\"og:description\" content=\"Understand how income tax works in China compared to your home country. Check out our tax calculator to play around with the numbers!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.teachingnomad.com\/blog\/china\/income-tax-in-china\/\" \/>\n<meta property=\"og:site_name\" content=\"Teaching Nomad\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-13T22:18:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-06T18:17:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.teachingnomad.com\/wp-content\/uploads\/2020\/03\/d26f2d3a8ff5583681ac68eec63fdc44.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\">\n\t<meta name=\"twitter:data1\" content=\"Teaching Nomad\">\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data2\" content=\"2 minutes\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.teachingnomad.com\/#website\",\"url\":\"https:\/\/www.teachingnomad.com\/\",\"name\":\"Teaching Nomad\",\"description\":\"Jobs and programs for teaching English abroad, International school employment and teaching job vacancies in Asia. Hiring Now!\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/www.teachingnomad.com\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.teachingnomad.com\/blog\/china\/income-tax-in-china\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.teachingnomad.com\/wp-content\/uploads\/2020\/03\/d26f2d3a8ff5583681ac68eec63fdc44.jpg\",\"width\":900,\"height\":630},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.teachingnomad.com\/blog\/china\/income-tax-in-china\/#webpage\",\"url\":\"https:\/\/www.teachingnomad.com\/blog\/china\/income-tax-in-china\/\",\"name\":\"Income Tax in China - Teaching Nomad\",\"isPartOf\":{\"@id\":\"https:\/\/www.teachingnomad.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.teachingnomad.com\/blog\/china\/income-tax-in-china\/#primaryimage\"},\"datePublished\":\"2020-03-13T22:18:27+00:00\",\"dateModified\":\"2025-02-06T18:17:11+00:00\",\"author\":{\"@id\":\"https:\/\/www.teachingnomad.com\/#\/schema\/person\/be291874179fcacd66a0b029cf615d26\"},\"description\":\"Understand how income tax works in China compared to your home country. Check out our tax calculator to play around with the numbers!\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.teachingnomad.com\/blog\/china\/income-tax-in-china\/\"]}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.teachingnomad.com\/#\/schema\/person\/be291874179fcacd66a0b029cf615d26\",\"name\":\"Teaching Nomad\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","_links":{"self":[{"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/posts\/7603"}],"collection":[{"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/comments?post=7603"}],"version-history":[{"count":8,"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/posts\/7603\/revisions"}],"predecessor-version":[{"id":18769,"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/posts\/7603\/revisions\/18769"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/media\/7604"}],"wp:attachment":[{"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/media?parent=7603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/categories?post=7603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.teachingnomad.com\/wp-json\/wp\/v2\/tags?post=7603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}