Business / China salary and tax
China Annual Bonus Tax Calculator — 2026
Compare total annual income tax under separate and merged bonus taxation. See the cheaper method, the tax difference and the cent-accurate cliff ranges for separate taxation.
China Annual Bonus Tax Calculator — 2026: Your year-end bonus can be taxed on its own or added to your annual salary. Enter the bonus, salary and deductions to see the tax both ways and which is cheaper. It also lists the cliff ranges where a slightly larger bonus leaves you with less money after tax (多发一元多交税). Runs 100% locally in your browser with zero server file uploads.
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Compare separate taxation (单独计税) with merging a qualifying annual bonus into 2026 comprehensive income. The separate method is available once per tax year for an eligible resident’s annual bonus, through 31 December 2027.
Use the annual deduction totals from the income tax tool. The CNY 60,000 basic deduction is automatic. The comparison assumes salary and this bonus are your only comprehensive income and compares final annual liabilities, before tax credits or filing exemptions.
Salary-only tax: CN¥9,480.00. Separately taxed bonus: CN¥1,080.00. Extra tax from merging the bonus: CN¥4,800.00.
Bonus tax cliffs (多发一元多交税)
For separate taxation, bonus ÷ 12 selects the rate and monthly quick deduction. Tax is bonus × rate − quick deduction. Crossing a bracket can reduce the net bonus. Each interval below compares net pay with the bonus exactly at the lower threshold.
| Threshold — excluded | Theoretical break-even, rounded for display | Last bonus cent with lower net pay | First cent recovering the threshold’s net pay |
|---|---|---|---|
| CN¥36,000.00 | CN¥38,566.67 | CN¥38,566.66 | CN¥38,566.67 |
| CN¥144,000.00 | CN¥160,500.00 | CN¥160,499.99 | CN¥160,500.00 |
| CN¥300,000.00 | CN¥318,333.33 | CN¥318,333.32 | CN¥318,333.33 |
| CN¥420,000.00 | CN¥447,500.00 | CN¥447,499.99 | CN¥447,500.00 |
| CN¥660,000.00 | CN¥706,538.46 | CN¥706,538.45 | CN¥706,538.46 |
| CN¥960,000.00 | CN¥1,120,000.00 | CN¥1,119,999.99 | CN¥1,120,000.00 |
The first interval is often written as CNY 36,000–38,566.67. CNY 36,000 itself is outside the cliff; with cent rounding, CNY 38,566.67 has recovered the net pay at the threshold. The last loss is CNY 38,566.66. These intervals describe the separate method, not the merged method.
An estimate for planning, not tax advice; use the State Taxation Administration’s Individual Income Tax app (个人所得税) for the official calculation.
Separate taxation through 2027
财政部 税务总局公告2023年第30号: divide the bonus by 12 to select the rate; tax = full bonus × rate − monthly quick deduction. The option is extended through 31 December 2027. https://shanghai.chinatax.gov.cn/tax/zcfw/zcfgk/grsds/202308/t468460.html
The converted thresholds are CNY 3,000, 12,000, 25,000, 35,000, 55,000 and 80,000; rates are 3%, 10%, 20%, 25%, 30%, 35% and 45%; quick deductions are CNY 0, 210, 1,410, 2,660, 4,410, 7,160 and 15,160. The converted table is also published in the STA explanation: https://www.chinatax.gov.cn/chinatax/n810214/n810641/n2985871/n2985888/n2986028/c4001080/content.html The once-per-tax-year condition is explained by Shanghai STA: https://shanghai.chinatax.gov.cn/zcfw/rdwd/202501/t474844.html .
Derived cliffs and the annual comparison
For threshold B, old rate r and quick deduction q, and next rate R and quick deduction Q, the unrounded break-even is [B × (1 − r) + q − Q] ÷ (1 − R). Applying the official table gives (36,000, 38,566.666…), (144,000, 160,500), (300,000, 318,333.333…), (420,000, 447,500), (660,000, 706,538.4615…) and (960,000, 1,120,000). Lower endpoints are excluded; exact endpoints use the displayed cent-rounding convention. These ranges are derived arithmetic, not a separate statutory schedule. https://shanghai.chinatax.gov.cn/tax/zcfw/zcfgk/grsds/202308/t468460.html
Merging applies the annual comprehensive-income table after the CNY 60,000 basic deduction and the eligible annual deductions you enter. Only salary and this bonus are included in the comparison. Individual Income Tax Law, Article 6 and Table 1: https://shanghai.chinatax.gov.cn/zcfw/zcfgk/grsds/201809/t441789.html
Special additional deductions for 2026
国发〔2023〕13号 raised children’s education and infant care to CNY 2,000 per child per month, and elderly support to CNY 3,000 per month, effective 1 January 2023. Siblings share the elderly-support allowance, with a CNY 1,500 individual limit. https://fgk.chinatax.gov.cn/zcfgk/c102440/c5213594/content.html Parent allocation is 100% to one parent or 50% each: 国家税务总局公告2023年第14号, https://fgk.chinatax.gov.cn/zcfgk/c100012/c5213592/content.html . The STA’s 2026 guidance describes the same amounts: https://jiangsu.chinatax.gov.cn/art/2026/4/14/art_21737_921.html
国发〔2018〕41号: degree continuing education is CNY 400 monthly for up to 48 months; an eligible vocational qualification allows CNY 3,600 in the certificate year. First-home loan interest allows CNY 1,000 monthly for up to 240 months, with a 50% share allowed in the specified two-pre-marital-loan case. Eligible rent allows CNY 1,500, 1,100 or 800 monthly according to the city band. Rent and mortgage interest cannot both be claimed by a couple in the same tax year. https://www.mof.gov.cn/zhengwuxinxi/caizhengxinwen/201812/t20181223_3102091.htm
The same State Council measure allows annual serious illness deductions for eligible catalogue-covered out-of-pocket expenses after reimbursement above CNY 15,000, capped at CNY 80,000 per patient. Eligible claims may be allocated between spouses, or to one parent for a minor child. The annual field accepts the sum of your allocated deductions. https://www.mof.gov.cn/zhengwuxinxi/caizhengxinwen/201812/t20181223_3102091.htm
How to use it
- Enter the bonus and annual salary excluding that bonus.
- Enter annual eligible contributions, special additional deductions and other deductions.
- Compare total tax under both methods and inspect any bonus cliff warning.
Privacy & limitations
Bonus, salary and deduction amounts are calculated in your browser and are not uploaded or saved.
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Frequently asked questions
How long is separate taxation available?
The published extension runs through 31 December 2027. An eligible resident may use the method once in a tax year for a qualifying annual bonus.
Is separate taxation always better?
No. Unused annual deductions and the marginal annual rate can make merging cheaper. Compare total annual tax, including salary tax under the separate method.
What does a bonus tax cliff mean?
Immediately above a separate-tax bracket threshold, the higher rate can reduce the net bonus. The table shows the mathematical break-even point and the exact first recovering cent after tax rounding.
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