Individual Income Tax (个人所得税) — what it is

China taxes salaries at 3-45% with a standard deduction — and gives foreigners an extra monthly deduction worth real money.

Updated August 2026 · Not tax advice; use an accountant for your case.

Individual income tax (个人所得税, gèrén suǒdéshuì) is what most people mean by "tax" in China: the progressive tax on employment income, withheld monthly by your employer and reconciled annually.

How it works in one line: taxable income = gross salary − ¥5,000 basic deduction − your social insurance/housing fund − (if foreign) ¥3,500 extra deduction, then taxed at 3% to 45% brackets.

The numbers that matter:

Standard deduction: ¥5,000/month for everyone.
Foreigner's deduction: +¥3,500/month for foreign nationals (tax-exempt allowances for housing, education, language, home leave) — currently extended to 31 December 2027.
Brackets: 3% up to ¥3,000/month taxable, then 10%, 20%, 25%, 30%, 35%, and 45% above ¥80,000/month.
183-day rule: under 183 days in China per year you're a non-resident taxed only on China-source income; at 183+ days you're a resident — but foreign-source income stays exempt for the first six years.

Your employer withholds monthly; in March-June each year the annual reconciliation compares withheld vs. owed, and overpayment comes back as a refund to your bank account. See the full guide for the details and refund triggers.