Question 1

Why does my take-home pay fall later in the year?

Accepted Answer

China withholds tax cumulatively. In January your year-to-date taxable income is small, so it sits in the 3% band. As the total grows it crosses into 10%, then 20%, and the monthly deduction rises. Your annual tax is unchanged — it is just collected unevenly.

Question 2

What counts as a special additional deduction?

Accepted Answer

Children's education, continuing education, serious illness medical expenses, mortgage interest or rent, elderly care, and childcare for children under three. Each has its own fixed monthly amount, and together they come off your taxable income before tax is calculated.

Question 3

Is the ¥5,000 threshold monthly or annual?

Accepted Answer

It is ¥5,000 per month, which is ¥60,000 over a full year. In the cumulative method it is applied as ¥5,000 times the number of months elapsed.

Question 4

Does this cover year-end bonuses?

Accepted Answer

No. Annual one-off bonuses can be taxed separately under a different schedule, and whether that is better depends on your salary level. This calculator covers regular monthly salary.