China Personal Income Tax
Detailed personal income tax rates and rules for China in 2026.
China's individual income tax (IIT) applies a progressive rate structure with seven brackets ranging from 3% to 45% on comprehensive income, which includes wages, salaries, remuneration for personal services, author's remuneration, and royalties. A standard deduction of CNY 60,000 per year (CNY 5,000 per month) applies, along with special additional deductions for children's education, continuing education, housing loan interest, housing rent, elderly care, and serious illness medical expenses. Non-residents are taxed on China-sourced income only.
| Income Range (CNY) | Tax Rate |
|---|---|
| ¥0 – ¥36K | 3% |
| ¥36K – ¥144K | 10% |
| ¥144K – ¥300K | 20% |
| ¥300K – ¥420K | 25% |
| ¥420K – ¥660K | 30% |
| ¥660K – ¥960K | 35% |
| ¥960K+ | 45% |
Filing Deadline
March 1 - June 30 (annual reconciliation)
Residency Rule
Individuals domiciled in China or residing in China for 183 days or more in a tax year are considered tax residents and are subject to tax on worldwide income. Non-residents are taxed only on China-sourced income. Individuals without a domicile in China who become tax residents are exempt from tax on foreign-sourced income for the first six consecutive years of residence, provided they leave China for more than 30 consecutive days within any single year during this period.
Additional Notes
China implemented a comprehensive IIT reform effective January 1, 2019, introducing the concept of comprehensive income, increasing the standard deduction, adjusting tax brackets, and adding special additional deductions. Employers withhold taxes monthly, and taxpayers must file an annual reconciliation return between March 1 and June 30 of the following year.
How China Income Tax compares
China’s top personal income tax rate of 45% is the 22nd highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Asia’s regional average of 22.2%.
