How to use the income tax calculator
Since the 2019 personal income tax reform, salary and wages in China are taxed using the cumulative withholding method, with a seven-bracket progressive rate applied to cumulative annual taxable income. That is why many people feel "the tax deducted is different every month" — less at the start of the year, more in the second half, with the annual total fixed.
The calculation logic
The core formula has three steps:
- Taxable income = cumulative income − cumulative basic deduction (5,000 × months) − cumulative social insurance and housing fund − cumulative special additional deductions − cumulative other deductions
- Cumulative tax payable = taxable income × applicable rate − quick deduction
- Tax to withhold this month = cumulative tax payable − tax already withheld this year
So the tax is computed cumulatively and withheld on a declining monthly basis, rather than calculated independently each month. This also explains why the tax jumps when you change jobs mid-year or your income fluctuates.
The seven progressive brackets
Expressed annually: the portion of annual taxable income up to 36,000 is taxed at 3%; the portion from 36,000 to 144,000 at 10%; then 20%, 25%, 30%, 35%, and the portion above 960,000 at 45%. Note what "progressive" means — the whole amount is not taxed at the top rate; it is split into bands and added up. The quick deduction is simply a shortcut for that band-by-band arithmetic.
Special additional deductions
- Children's education: 2,000 per child per month; parents may split it evenly or one may claim all of it
- Care for children under 3: 2,000 per child per month
- Continuing education: 400 per month for degree study (up to 48 months); 3,600 once in the year a vocational qualification is obtained
- Mortgage interest: 1,000 per month on a first-home loan, for up to 240 months
- Housing rent: 1,500 / 1,100 / 800 per month depending on city tier; cannot be combined with mortgage interest
- Supporting elderly parents: 3,000 per month for an only child; for siblings, apportioned with no one claiming more than 1,500 per month
- Serious illness medical expenses: the portion of annual out-of-pocket costs above 15,000, deducted as actually incurred within an 80,000 cap (claimed at the annual settlement)
How to tax your year-end bonus
There are two ways to tax a year-end bonus, and you may only choose one each year, and the separate method can only be used once in a tax year:
- Taxed separately: divide the bonus by 12 to find the applicable rate, then apply that rate to the full amount and subtract the quick deduction. Suits a large bonus and a relatively high regular salary
- Added to comprehensive income: add the bonus to your annual income and calculate together. Suits a relatively low regular salary with many deductions
There is a well-known "threshold trap" here: a 36,000 bonus leaves 34,920 after tax, while a 36,001 bonus leaves only 32,610.9 — 1 more paid, 2,310 less in hand. Similar thresholds sit at 144,000, 300,000, 420,000, 660,000 and 960,000. This tool shows the tax under both methods so you can compare directly. Whether the separate-bonus policy continues depends on that year's tax authority announcements.
Frequently asked questions
Why did the withheld tax suddenly jump in the middle of the year?
That is normal behaviour for cumulative withholding. Early in the year the cumulative taxable income sits in a low bracket; as the months accumulate it crosses into a higher bracket and the monthly tax rises. The annual total is unchanged, only the distribution. If one month's income is unusually high (a quarterly bonus, say), that month's tax rises noticeably too.
How do I fill in social insurance and the housing fund?
Enter the employee's own contribution, not the employer's share. Contribution bases and rates differ by city, and the housing fund rate is chosen by the employer between 5% and 12%, so it's best to copy the actual deducted amount from your payslip. "Auto-fill by rate" estimates from common rates and is only a guide.
Why doesn't this match the tax app?
Possible reasons: this tool assumes income is paid evenly across 12 months, whereas reality fluctuates; the figures you entered for social insurance or special additional deductions may follow a different convention; or there are other deductions (enterprise annuity, commercial health insurance). The authoritative figure is what the withholding agent files and what the annual settlement produces.
Do I have to declare special additional deductions myself?
Yes. You file them in the "个人所得税" (Individual Income Tax) app, and only then can your employer apply them when withholding. They normally take effect from the month you file; earlier months can be caught up at the annual settlement. Note that housing rent and mortgage interest are mutually exclusive.
Is my data uploaded?
No. Everything is calculated locally in your browser. Salary and other sensitive details never leave your device — which means you can safely enter your real income to model it.