2025 Individual Income Tax Calculator (China) · Cumulative Withholding

Overview

Since 2019, China computes personal income tax on salary using the cumulative-withholding method under the comprehensive-income regime. This tool follows the exact formula: enter your monthly salary, insurance, itemized deductions and starting month, and instantly see the annual tax, monthly breakdown and net pay. For reference only; always confirm with your HR or tax authority.

How to use

Enter your monthly gross salary.
Enter the monthly employee portion of social insurance + housing fund.
Enter the total monthly itemized deductions (children's education, housing loan interest, rental, elderly care, etc.).
Choose the starting month (1 = January, or your onboarding month for mid-year starts).
The results panel shows annual tax, net income and effective tax rate. Expand the monthly schedule to see how the cumulative taxable base climbs into the next bracket.

Formula

1. 2025 brackets (cumulative annual taxable income):
   ≤ 36,000            3%,   quick deduction 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
   > 960,000            45%,  181,920

2. Cumulative taxable income through month m =
   Σsalary_i − Σinsurance_i − Σdeduction_i − 5,000 × m

3. Cumulative tax = taxable × rate − quick_deduction

4. Monthly tax = cumulative_tax(m) − cumulative_tax(m−1), floored at 0.

Common scenarios

Scenario 1 · 20k salary / 3k insurance / 2k deductions

Annual tax ≈ 14,760 RMB; the cumulative base crosses the 3% → 10% bracket around March.

Scenario 2 · 50k salary / 4k insurance / 3k deductions

Annual tax ≈ 75k+; taxable base reaches the 25% bracket around May, 30% around August — that's why monthly deductions jump near year-end.

Scenario 3 · Starting in June with 15k salary

Only 7 months are counted, so the cumulative 5000 × m threshold saves more tax proportionally — typical mid-year-joiner bonus.

FAQ

How is cumulative withholding different from monthly-independent tax?

Monthly-independent taxes each month separately (pre-2019). Cumulative withholding (from 2019) accumulates year-to-date, which smooths monthly deductions and typically reduces total tax. Annual totals are similar; monthly cashflow differs.

What does "itemized deductions" include?

Children's education, continuing education, major medical, mortgage interest, rental, elderly care, infant care. This first version uses a single "total deductions" field; an itemized form is planned.

Why does monthly tax grow toward year-end?

The cumulative taxable base grows each month. Once it crosses a bracket threshold (e.g. 10% → 20%), subsequent months take a higher marginal rate. It's not a bug — it's how cumulative withholding works.

Is year-end bonus separate tax supported?

Year-end bonus (one-off annual bonus) uses a separate schedule; that calculator is shipping in W5.

How to input social insurance + housing fund?

Use your payslip's "employee contribution total" (pension 8%, medical 2%, unemployment 0.5%, housing fund 5%–12% — totals vary by city). Always enter the actual value, not an estimate.

Why is my payroll slip different?

Common causes: different withholding method, deductions' effective month, bonus treatment, or variable pay (overtime/allowances). The formula itself is public; always defer to your actual declaration.

Does this tool upload my income data?

No. All computations run locally in your browser; no data leaves your device.