Figure out what you actually take home after tax, social insurance, and housing fund deductions
China switched to a new tax system in 2019. The key change: you now get a standard deduction of ¥5,000/month (up from ¥3,500), plus you can claim special deductions for things like children's education, elderly care, continuing education, housing loan interest, housing rent, and major medical expenses.
Your tax is calculated on taxable income = monthly salary − social insurance − ¥5,000 standard deduction − special deductions. The rates run from 3% to 45% across seven brackets.
These are real money-savers if you qualify:
Children's education: ¥1,000/month per child (¥2,000 if both parents claim)
Elderly care: ¥2,000/month if you're the sole caregiver, ¥1,000 if sharing with siblings
Housing rent: ¥800-1,500/month depending on city tier
Housing loan interest: ¥1,000/month (first home only, max 240 months)
Continuing education: ¥400/month or ¥3,600/year for degree education
Every employee in China pays into five funds: pension (8%), medical (2%), unemployment (0.5%), work injury (employer only), and maternity (employer only). Plus the housing fund (5-12%, shared equally by employer and employee). Your share gets deducted before tax, which is a good thing — it lowers your taxable income.
The housing fund is not really a "tax" — it's your money. You can withdraw it for housing-related expenses, and some cities let you take it out when you leave China.
¥0 – ¥3,000: 3%
¥3,001 – ¥12,000: 10% (quick deduction ¥210)
¥12,001 – ¥25,000: 20% (quick deduction ¥1,410)
¥25,001 – ¥35,000: 25% (quick deduction ¥2,660)
¥35,001 – ¥55,000: 30% (quick deduction ¥4,410)
¥55,001 – ¥80,000: 35% (quick deduction ¥7,160)
¥80,001+: 45% (quick deduction ¥15,160)
These brackets apply to your taxable income, not your gross salary. After all deductions, most people earning under ¥20,000/month fall in the 3-10% range.