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Living · Tax

China IIT brackets — 2026

China uses a progressive Individual Income Tax system for employment income. The consolidated income tax table, introduced in the 2018 IIT reform, applies to salary, wages, and most work income for both Chinese nationals and foreign residents who are China tax residents.

Verified May 2026China Visit Guide editorial

[VERIFY: source needed — May 2026] Tax rates and bracket thresholds are set by the State Taxation Administration (STA) and have not changed since the 2018 IIT reform as of the verified date. Confirm with a registered tax adviser before filing, as adjustments may occur through STA circulars not captured here.

How China IIT works for foreign residents

Foreign nationals who are China tax residents are subject to IIT on their income. China uses a 183-day presence rule to determine tax residency: if you spend 183 or more days in mainland China during a calendar year, you are a China tax resident for that year and your China-sourced income is taxable in China.

The scope of income subject to Chinese IIT expands with the length of your China residence. The six-year rule determines when global income (including income from outside China) becomes subject to Chinese IIT. For most recently-arrived expatriates, only China-sourced income is taxed here.

For employed expatriates, IIT is typically withheld at source by the employer's Chinese payroll entity. The employer calculates the applicable bracket, withholds the tax monthly, and remits it to the State Taxation Administration. The annual reconciliation (filed typically in March–June for the prior year through the individual tax app) adjusts for any over- or under-withholding.

Consolidated income tax brackets (employment income)

LevelAnnual taxable incomeMonthly equivalentRateQuick deduction (¥)
1Up to ¥36,000Up to ¥3,0003%0
2¥36,001–¥144,000¥3,001–¥12,00010%2,520
3¥144,001–¥300,000¥12,001–¥25,00020%16,920
4¥300,001–¥420,000¥25,001–¥35,00025%31,920
5¥420,001–¥660,000¥35,001–¥55,00030%52,920
6¥660,001–¥960,000¥55,001–¥80,00035%85,920
7Over ¥960,000Over ¥80,00045%181,920

The basic deduction

[VERIFY: source needed — May 2026] The standard monthly basic deduction (基本减除费用) for China resident taxpayers is ¥5,000/month (¥60,000/year). This is deducted from gross employment income before applying the brackets above. A foreign resident earning ¥300,000/year in gross salary would have a taxable income of ¥240,000 (¥300,000 − ¥60,000 basic deduction) before any additional deductions.

Additional deductions for foreign residents

The 2018 IIT reform replaced the previous special exemptions available to foreigners (housing subsidies, children's education subsidies, home-leave travel allowances) with a unified set of standard deductions available to all China resident taxpayers:

  • Children's education: [VERIFY: source needed — May 2026] ¥2,000/month per child attending qualifying education (can be split between parents).
  • Continuing education: [VERIFY: source needed — May 2026] ¥400/month during study period, ¥3,600/year for qualifying degree programmes.
  • Major illness medical expenses: Up to [VERIFY: source needed — May 2026] ¥80,000/year for qualified medical costs above a threshold.
  • Housing loan interest: [VERIFY: source needed — May 2026] ¥1,000/month for the first home mortgage in China.
  • Housing rental: [VERIFY: source needed — May 2026] ¥800–¥1,500/month depending on city (highest for Beijing, Shanghai, Guangzhou, Shenzhen).
  • Elderly care: [VERIFY: source needed — May 2026] Up to ¥3,000/month for supporting parents or grandparents aged 60 or older.

Foreign residents who are China tax residents can claim these deductions — the old foreigners-only exemptions (housing allowances, children's education allowances treated as non-taxable benefits) were progressively phased out for most categories between 2019 and 2022. Specific transitional arrangements may still apply in certain cases; confirm with a tax adviser.

Tax treaty relief

China has tax treaties with over 100 countries. If your home country has a tax treaty with China, you may be entitled to reduced withholding rates on certain income types or relief from double taxation. See the tax treaty by country guide for your specific nationality.

Related guides

Verified May 2026

China Visit Guide editorial · Not tax advice — consult a registered tax adviser for your specific situation