Income tax in China (2026)

In 2026, income tax in China runs from 3% to 45%. On a CN¥500,000 salary you take home CN¥362,494 a year, CN¥30,208 a month.

Figures are for citizens and permanent residents. Foreign nationals don't pay the citizens-only contributions, so they take home more.

Income tax rates

Top rate
45%
Lowest rate
3%
Tax-free allowance
CN¥60,000
VAT
13%
Capital gains
20%
The 2026 bands, in Chinese Yuan
Income-tax bands of China, 2026, in Chinese Yuan
Taxable income (after allowance)Rate
CN¥0 to CN¥36,0003%
CN¥36,000 to CN¥144,00010%
CN¥144,000 to CN¥300,00020%
CN¥300,000 to CN¥420,00025%
CN¥420,000 to CN¥660,00030%
CN¥660,000 to CN¥960,00035%
over CN¥960,00045%

Take-home pay by salary

Compare with other countries

Cost of living in China

Frequently asked questions

What are the income tax rates in China?

Income tax in China runs from 3% to 45%, in 7 bands.

Is there a tax-free allowance in China?

Yes — the first CN¥60,000 a year is tax-free in China.

What is the take-home pay on CN¥500,000 in China?

On CN¥500,000 in China you take home CN¥362,494 a year — CN¥30,208 a month.

2026 rules checked against taxsummaries.pwc.com. Single person, employee, no other income. Not tax advice. Change the details

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