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China Salary Tax & Net Pay (cumulative withholding 累计预扣)

China

Computes monthly and annual individual income tax (IIT) on a China salary using the actual cumulative withholding method (累计预扣预缴法). Because tax is recomputed on year-to-date income, the same gross salary is withheld more each month as cumulative income climbs the brackets — so your take-home falls through the year. Simple monthly-bracket calculators (and general AI) get every month after the first bracket crossing wrong.

Basis: Comprehensive-income rate table (current) · cumulative withholding method

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The numbers

Annual income tax
25,080
7% of gross
Annual take-home
280,920
after tax and social insurance
Take-home — first month
24,975
tax withheld 525
Take-home — last month
22,000
tax withheld 3,500
Preview only — using a default Monthly salary.

The operator’s read

Worth knowing

Same 30,000 gross every month, but tax withheld rises from 525 in month 1 to 3,500 in month 12 — so take-home drops about 2,975 between January and December, with the first jump in month 3. This is the cumulative method: it is deferral, not extra tax — the year totals the same either way, but a flat monthly-bracket calculator shows the wrong number for most of the year.

Worth knowing

Your 3,000/month of special additional deductions cut tax, not take-home cash directly — they lower taxable income, saving roughly 7,200 a year at your marginal rate. Make sure you have claimed every one you qualify for.

Worth knowing

An annual bonus (全年一次性奖金) can be taxed separately (bonus ÷ 12 to find the rate) or rolled into annual income — the cheaper choice differs by income, and there are “trap” amounts just above each threshold where a slightly bigger bonus nets you less. The separate option is available through end-2027.

Methodology

Cumulative withholding (累计预扣预缴法): each month, tax is computed on year-to-date taxable income = cumulative gross − cumulative (5,000/month standard deduction + social insurance + special additional deductions), using the annual comprehensive-income rate table; the month’s withholding is that cumulative tax minus tax already withheld this year.

Because cumulative income climbs into higher brackets as the year progresses, the monthly withheld amount rises (and take-home falls) even when gross is constant. It is deferral, not extra tax — the 12 months sum to the annual-table tax on total annual taxable income.

Annual comprehensive-income table (cumulative): 3% to 36,000; 10% to 144,000 (−2,520); 20% to 300,000 (−16,920); 25% to 420,000 (−31,920); 30% to 660,000 (−52,920); 35% to 960,000 (−85,920); 45% above (−181,920).

Special additional deductions reduce taxable income (hence tax), not take-home cash. This tool assumes a constant monthly gross and the same deductions each month; irregular pay or mid-year changes shift the month-by-month split but not the annual total.

Questions

Why does my China take-home pay drop later in the year?
Because IIT is withheld by the cumulative method: tax is recomputed on your year-to-date income each month. As cumulative income crosses into higher brackets, the monthly withholding rises, so net pay falls even though gross is unchanged. It evens out — the annual total is the same — but the monthly amounts are not level.
How is China individual income tax calculated on salary?
Monthly taxable income = gross − 5,000 standard deduction − your social insurance − special additional deductions. Tax uses the annual comprehensive-income table applied to cumulative year-to-date taxable income, and each month you withhold the increase over what was already withheld.
What are the special additional deductions?
Children’s education (2,000/month per child), childcare under 3 (2,000/child), elderly care (up to 3,000/month), first-home loan interest (1,000/month) or housing rent (800–1,500/month by city), and continuing education (400/month). They lower taxable income; serious-illness medical is claimed at the annual reconciliation.

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