DoubleTaxationTaxes on salary: China
How much tax and social security is paid on a salary in China, what is left as take-home pay, and which special tax regimes exist.
Calculation for a gross salary of €60,000 per year
| Gross salary | CN¥491,838 ≈ €60,000 |
|---|---|
| Income tax | |
| 个人所得税 | CN¥51,677 ≈ €6,304 |
| Employee contributions | |
| 基本养老保险费（个人） | CN¥34,636 ≈ €4,225 |
| 基本医疗保险费（个人） | CN¥8,695 ≈ €1,061 |
| 失业保险费（个人） | CN¥2,165 ≈ €264 |
| 住房公积金（个人） | CN¥51,954 ≈ €6,338 |
| Take-home pay | CN¥342,711 ≈ €41,808 |
| Employer contributions and payroll taxes | |
| 基本养老保险费（单位） | CN¥69,273 ≈ €8,451 |
| 基本医疗保险费（含生育保险，单位） | CN¥42,429 ≈ €5,176 |
| 失业保险费（单位） | CN¥2,165 ≈ €264 |
| 工伤保险费 | CN¥866 ≈ €106 |
| 住房公积金（单位） | CN¥51,954 ≈ €6,338 |
| Employer's labour cost | CN¥658,525 ≈ €80,334 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
This country is not covered by OECD Taxing Wages; the calculation is ours, using the same methodology.
Special tax regimes
These regimes are not included in the calculation above: each has its own conditions.
无住所个人居住时间判定标准（“六年规则”）
Who: Non-domiciled foreigners present in China 183 days or more in a year.
Foreign-source income paid by foreign payers is exempt until six consecutive years of 183+ days with no single absence over 30 days; one absence over 30 days resets the count.
Legal basis: 财政部 税务总局公告2019年第34号 第一条; 《个人所得税法实施条例》第四条
外籍个人津补贴免税政策
Who: Foreign individuals who are Chinese tax residents.
Instead of special additional deductions, may elect IIT exemption of reasonable, documented housing, language-training and children's-education allowances; election fixed for the year, no combination. Until 31 Dec 2027.
Legal basis: 财政部 税务总局公告2023年第29号
海南自由贸易港高端紧缺人才个人所得税优惠
Who: Talent on Hainan's list — recognised by the province or earning at least CNY 300,000 a year in Hainan — who live there 183 days a year (at least 90 actual days) and work for an entity with substantive operations on the island.
IIT on comprehensive and business income derived in Hainan exceeding an effective 15% burden is exempt. Until 31 Dec 2027.
Legal basis: 财税〔2020〕32号；财税〔2025〕4号（延续至2027年）；琼府〔2025〕43号（转载：香港工业贸易署）
粤港澳大湾区个人所得税优惠政策
Who: Overseas (incl. Hong Kong, Macao, Taiwan) high-end and shortage talent working in the nine Pearl River Delta cities.
Guangdong and Shenzhen pay a subsidy equal to the difference between the mainland and Hong Kong tax burden; the subsidy is tax-free. Until 31 Dec 2027.
Legal basis: 财税〔2023〕34号
横琴粤澳深度合作区个人所得税优惠政策
Who: Listed high-end and shortage talent working in the Hengqin zone; separately, Macao residents working there.
IIT above a 15% burden is exempt; for Macao residents, above the Macao tax burden. Extended 1 Jan 2026 to 31 Dec 2027.
Legal basis: 财政部 税务总局关于延续实施横琴粤澳深度合作区个人所得税优惠政策的通知（财税〔2026〕2号；转载：香港工业贸易署）
全年一次性奖金单独计税
Who: Resident employees receiving an annual one-off bonus.
The bonus may be kept out of comprehensive income: the rate is found on the monthly table using the bonus divided by 12 and applied to the whole bonus. Until 31 Dec 2027.
Legal basis: 财政部 税务总局公告2023年第30号
经营所得（个体工商户减半征收）
Who: Individual industrial and commercial households, sole proprietors and individual partners.
Business income taxed at progressive 5–35%; for individual households IIT on annual taxable income up to CNY 2 million is halved (2023–2027).
Legal basis: 《中华人民共和国个人所得税法》第3条; 财政部 税务总局公告2023年第12号
基本养老金免征个人所得税
Who: Retirees receiving a basic pension or retirement pay under uniform state rules.
Basic pension, retirement pay and resettlement allowances paid under uniform state rules are exempt from individual income tax.
Legal basis: 《中华人民共和国个人所得税法》第四条第一款第七项
无住所个人境内居住累计不超过90天的境内所得免税
Who: Individuals without a domicile in China who stay there no more than 90 days in a tax year.
China-source income (for work in China) paid by a foreign employer and not borne by its establishment in China is exempt.
Legal basis: 《中华人民共和国个人所得税法实施条例》第五条
Tax residence
When China treats you as a tax resident
- You habitually reside in China by reason of household registration, family or economic interests, so you have a domicile in China. Under Art. 1 of the Individual Income Tax Law you are a resident individual of China, taxed on income from sources inside and outside China (including Pakistan) however many days you spent there; foreign tax can be credited within the limit of Art. 7.
- You have no domicile in China but stayed there for 183 days or more in this calendar year, so you are a resident individual of China (Art. 1). Because you also had 183 days in each of the six preceding years with no single absence of more than 30 days, all your income — including income from Pakistan — is taxable in China.
- You have no domicile in China but stayed there for 183 days or more in this calendar year, so you are a resident individual of China (Art. 1). Because in at least one of the six preceding years you had fewer than 183 days or a single absence of more than 30 days, foreign-source income paid by foreign entities or individuals (for example, rent or salary paid from Pakistan) is exempt in China after a filing with the tax authority (Implementation Regulations, Art. 4); Chinese-source income and foreign income paid by Chinese payers remain taxable.
- You have no domicile in China but stayed there for 183 days or more in this calendar year, so you are a resident individual of China (Art. 1). Whether your foreign income is also taxed in China depends on the «six-year rule»: if you had 183 days in each of the six preceding years (counted from 2019) with no single absence of more than 30 days, all income is taxable; otherwise foreign-source income paid by foreign payers is exempt after a filing.
- You stayed in China for 183 days or more in this calendar year, so you are a resident individual of China whether or not you have a domicile there (Art. 1). With a domicile, all income from inside and outside China is taxable; without one, foreign-source income paid by foreign payers may be exempt under the «six-year rule» (Implementation Regulations, Art. 4).
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- China is not in OECD Taxing Wages: mandatory state social insurance (pension, medical incl. maternity, unemployment, work injury) and the housing provident fund are included; the fund is treated as a mandatory contribution although the money belongs to the employee.
- Housing fund at 12% employee and 12% employer (top of Beijing's 5–12% range); employee social insurance and fund contributions are deducted as special deductions.
- Contribution bases: Jan–Jun 2025 limits (CNY 7,162–35,811 a month), Jul–Dec 2026 limits (CNY 7,270–36,348). Rates from July 2026 assumed unchanged.
- Equal monthly salary, no annual one-off bonus; optional special additional deductions (children, mortgage, rent, parents) not applied. Work injury insurance at 0.2% (lowest industry class).
- Local taxes — location: Beijing
- Tax period: 2026-01-01 – 2026-12-31
- Exchange rate: 1 EUR = 8.1973 CNY (ECB euro foreign exchange reference rate, 02/01/2026)
Sources
- 《中华人民共和国个人所得税法》(2018) 第三条、第六条 — 综合所得 3–45%，基本减除费用 60 000 元，专项扣除（社会保险和住房公积金）
- 国家税务总局公告2018年第61号 — 预扣率表一 (36 000 / 144 000 / 300 000 / 420 000 / 660 000 / 960 000)
- Forvis Mazars, Sept. 2025 — Beijing rates 1.07.2025–30.06.2026: pension 16 %/8 %, medical 9.8 %/2 %+3, unemployment 0.5 %/0.5 %, injury 0.2–1.9 %, housing fund 5–12 %, base 7 162–35 811 (京人社发〔2025〕11号)
- 北京市人社局、医保局、税务局《关于2026年度各项社会保险缴费工资基数上下限的通告》— 2026年7月起：7 270–36 348
- 北京住房公积金管理中心《关于2025住房公积金年度缴存有关问题的通知》— 上限 35 811, 下限 2 540, 5–12 %
- 《关于2026住房公积金年度缴存有关问题的通知》— 上限 36 348, 下限 2 540 (1.07.2026–30.06.2027)
- PwC Worldwide Tax Summaries, China — Individual (reviewed 22 Jul 2026)
Data checked: 01/11/2026. An indicative calculation for a typical case. Not tax advice.