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Tax

Year-End Bonus Tax Calculator · Separate vs Combined Comparison

Enter monthly salary, insurance, special deductions and annual bonus to instantly compare two tax methods — separate taxation vs combining into comprehensive income — across annual tax, effective rate, and net income. Policy aligned with China's 2023 extension through 2027. Runs locally in your browser.

Overview

China's State Council confirmed in Aug 2023 that the separate bonus tax policy will continue through 2027. Two methods can differ by tens of thousands of yuan depending on your income bracket. This tool takes monthly salary, insurance, special deductions and annual bonus, then compares both methods instantly — total tax, net income, effective rate and marginal rate — and highlights the cheaper one. Runs fully locally.

How to use

  1. Enter monthly pre-tax salary (CNY).
  2. Enter monthly insurance (around 20% of salary).
  3. Enter monthly special deductions (children / mortgage / rent / elderly care), or 0.
  4. Enter annual bonus amount.
  5. The panel highlights the cheaper side with ★ and shows the saving.

Formula

Plan A (separate):
  salaryTax = (annualSalary − annualInsurance − annualSpecial − 60000) × rate − quickDeduction
  bonusTax (look up by bonus/12 on the monthly 7-tier table):
    ≤3k→3%·0  ≤12k→10%·210  ≤25k→20%·1410  ≤35k→25%·2660
    ≤55k→30%·4410  ≤80k→35%·7160  >80k→45%·15160
  total = salaryTax + bonusTax

Plan B (combined):
  total = (salaryTaxable + bonus) × rate − quickDeduction
  using the same 7-tier comprehensive table.

Common scenarios

Scenario 1 · Middle income · Monthly 20k / insurance 4k / special 2k / bonus 60k

Separate ≈ ¥14,070 vs Combined ≈ ¥16,680. Separate saves ~¥2,610.

Scenario 2 · Lower income · Monthly 8k / no deduction / bonus 30k

Separate ¥1,980 vs Combined ¥4,080 → separate saves ¥2,100.

Scenario 3 · ¥36,000 vs ¥36,001 cliff

One extra yuan jumps you from 3% to 10% bracket, adding ¥2,310 tax out of thin air.

FAQ

Will the separate policy continue?

Yes — extended through Dec 31, 2027 by State Council in Aug 2023. Post-2028 depends on future policy.

What are the 36k / 144k / 300k cliffs?

The 7 tier bounds (×12): 36k/144k/300k/420k/660k/960k. Crossing by 1 yuan can add thousands in tax. Try to stay under or well above each cliff.

When does combining save more?

When your salary-only taxable income is tiny and bonus is small, combining stays in the 3% bracket and wins. Tool auto-compares.

What are special deductions?

7 items including child education, infant care, continuing education, major medical, mortgage interest, rent, elderly care. Enter monthly total.

What if my bonus comes in two parts?

A resident may use separate bonus taxation only once per tax year. Sum both parts into one field.

Does this tool upload my salary data?

No. Everything runs locally in your browser; nothing is uploaded.

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