How it is calculated
Special additional deductions per month: childcare under 3 and children's education 2,000 yuan per child, supporting parents 3,000 yuan (siblings share, up to 1,500 each), first-home mortgage interest 1,000 yuan, housing rent 800–1,500 yuan, continuing education 400 yuan.
Employee contributions = base × (pension 8% + medical 2% + unemployment 0.2–0.5%) + fund base × fund rate Contribution base = gross salary (kept within the city floor and cap) Cumulative taxable income in month n = cumulative income − 5,000 × n − cumulative contributions − cumulative special deductions Tax withheld in month n = cumulative taxable income × rate − quick deduction − tax withheld in months 1 to n−1 Net pay = gross pay − employee contributions − tax withheld that month
2026 comprehensive income tax rates
Cumulative withholding uses the same table. Taxable income is annual (cumulative).
| Cumulative taxable income (yuan) | Rate | Quick deduction (yuan) |
|---|---|---|
| Up to 36,000 | 3% | 0 |
| 36,000 – 144,000 | 10% | 2,520 |
| 144,000 – 300,000 | 20% | 16,920 |
| 300,000 – 420,000 | 25% | 31,920 |
| 420,000 – 660,000 | 30% | 52,920 |
| 660,000 – 960,000 | 35% | 85,920 |
| Over 960,000 | 45% | 181,920 |
For separate taxation of an annual bonus, bonus ÷ 12 is matched against the monthly table (thresholds 3,000, 12,000, 25,000, 35,000, 55,000 and 80,000 yuan) to find the rate and quick deduction (0, 210, 1,410, 2,660, 4,410, 7,160, 15,160), applied once to the whole bonus.
City contribution rules (from July 2026)
| City | Social insurance base (yuan) | Employee rates (pension · medical · unemployment) | Housing fund base · rate |
|---|---|---|---|
| Beijing | 7,270 – 36,348 | 8% · 2% + 3 yuan · 0.5% | 2,540 – 36,348 · 5–12% |
| Shanghai | 7,546 – 37,731 | 8% · 2% · 0.5% | 2,740 – 37,731 · 5–7% |
| Guangzhou | Pension 5,521 – 27,603 | 8% · 2% · 0.2% | 2,680 – 42,933 · 5–12% |
| Shenzhen | Pension 5,521 – 27,603 | 8% · 2% · 0.2% | 2,520 – 48,471 · 5–12% |
Guangzhou and Shenzhen use different bases per insurance (2026 medical: Guangzhou 6,234–31,170, Shenzhen 6,727–33,633). Work-injury and maternity insurance are paid by the employer only. In Shenzhen the housing fund floor is 2,700 yuan for contributions starting from September 2026. The Shanghai housing fund rate range, the Guangzhou medical base, the Guangzhou and Shenzhen housing fund caps and the 2026 unemployment rates still need checking.
Example: Beijing, 20,000 yuan a month
Beijing, gross 20,000 yuan (base also 20,000), housing fund 12%, children's education deduction 2,000 yuan a month, annual bonus of 30,000 yuan in December.
- Employee contributions: Pension 1,600 + medical 403 (2% + 3 yuan) + unemployment 100 = 2,103 yuan, housing fund 2,400 yuan → 4,503 yuan a month
- Monthly taxable income: 20,000 − 5,000 − 4,503 − 2,000 = 8,497 yuan
- January–April: Cumulative taxable income stays within 36,000 yuan, so 3% → 254.91 yuan tax a month, 15,242.09 yuan net
- May: Cumulative 42,485 yuan enters the 10% bracket: 708.86 yuan tax
- June–December: 849.70 yuan tax a month, 14,647.30 yuan net. Annual tax on salary: 7,676.40 yuan
- Bonus of 30,000 yuan: Separate: 30,000 ÷ 12 = 2,500 → 3% → 900 yuan (annual tax 8,576.40). Combined: December tax rises to 3,849.70 yuan, 10,676.40 yuan for the year → separate taxation is 2,100 yuan lower in this example
- Employer cost: Social insurance 5,300 (pension 16% 3,200 + medical 9.8% 1,960 + unemployment 100 + work injury 0.2% 40) + housing fund 2,400 = 7,700 yuan; total employer cost 27,700 yuan a month
Things to keep in mind
- Monthly withholding is a prepayment. The final tax is settled with other income and deductions in the annual reconciliation (年度汇算) from 1 March to 30 June of the following year.
- If you were withheld every month by the same employer last year and earned 60,000 yuan or less, the 60,000-yuan cumulative deduction applies from January (STA Announcement No. 19 of 2020). This calculator does not apply it.
- Contribution bases are normally set from the previous year's average wage and change around July each year. In your first year, your first month's wage is the base.
- See the basis notes under the calculator for the status of Beijing/Shanghai unemployment at 0.5%, Shenzhen's extra 1% local pension for registered residents (employer-paid) and industry-specific work-injury rates.
- Separate bonus taxation can be chosen until 31 December 2027. Just crossing a monthly-table threshold (such as 36,000 or 144,000 yuan) can make the tax jump.
FAQ
Why is my December net pay lower than January?
Cumulative withholding applies the annual rate table to income accumulated since January. Once cumulative taxable income passes thresholds such as 36,000 or 144,000 yuan, later months are withheld at a higher rate, so the same salary nets less. The year's total equals the tax from the annual table.
What are the "five insurances and one fund"?
Pension, medical, unemployment, work-injury and maternity insurance plus the housing provident fund. Employees pay pension, medical, unemployment and the fund; work-injury and maternity are employer-only. In Beijing and Shanghai maternity is merged into medical insurance.
Is the housing fund a tax?
No. Your share and the employer's share go into an account in your name, which you can draw on for buying a home, repaying a mortgage or paying rent. Your share is deductible for income tax within the limits.
How do I claim special additional deductions?
Register them in the 个人所得税 app and your employer applies them to monthly withholding. Anything not registered can still be claimed in the next year's annual reconciliation.
Basis and sources
- State Taxation Administration — Measures for IIT Withholding Declarations (Announcement No. 61 of 2018)
- STA Shanghai Tax Bureau — comprehensive income IIT rate table
- MOF & STA Announcement No. 30 of 2023 — separate taxation of annual bonuses extended to 2027
- State Council Guofa [2023] No. 13 — higher special additional deductions
- Beijing HRSS Bureau — 2026 social insurance contribution base limits
- Beijing Housing Provident Fund Center — 2026 contribution year notice
- Shanghai HRSS Bureau — 2026 social insurance contribution base limits
- Guangdong HRSS Department — 2026 pension contribution base limits (粤人社发〔2026〕24号)
- Shenzhen Healthcare Security Bureau — 2026 employee medical insurance contributions