Your Expat Package (RMB)
Total cash package including any cash allowances paid with payroll
Housing, children's education, language training — paid in cash against invoices; exempt only if elected
Your payslip deductions; mandatory for foreign employees unless a totalization agreement applies
Residents: worldwide income, annual settlement, special deductions. Non-residents: China-source income, monthly rates only
You cannot claim both for the same expense — STA Announcement No. 35, 2019
Used only under election B: rent ¥800–1,500, children ¥2,000/child, elderly care up to ¥3,000, etc.
IIT Result
Tax brackets used (2026)
Resident — annual comprehensive income
| Annual taxable (¥) | Rate | Quick deduction |
|---|
Non-resident — monthly wages
| Monthly taxable (¥) | Rate | Quick deduction |
|---|
View calculation formula
Election A (tax-free expat allowances): monthly taxable = gross cash salary − tax-free allowance portion (invoice-backed) − personal social insurance − ¥5,000.
Election B (special additional deductions, residents only): monthly taxable = gross cash salary − personal social insurance − special additional deductions − ¥5,000; the allowance portion becomes taxable.
Resident: annual taxable = monthly taxable × 12; annual IIT = annual taxable × rate − quick deduction (annual table); monthly IIT = annual ÷ 12.
Non-resident: monthly IIT = monthly taxable × monthly rate − monthly quick deduction; no annual settlement, no special additional deductions.
Take-home cash = gross cash salary − personal social insurance − IIT (the allowance portion is still your cash; it is simply not taxed under election A).
How China taxes foreign employees
The 183-day rule: an individual who stays in China for 183 days or more in a calendar tax year is a tax resident — taxed on worldwide income with an annual settlement (reconciliation) between March and June the following year. Fewer than 183 days makes you a non-resident — taxed only on China-source income using the monthly table above, with no annual settlement and no special additional deductions.
The six-year rule: a resident without domicile is not immediately taxed on all worldwide income. Foreign-source income paid from outside China stays exempt until you have been a resident for six consecutive years; any year under 183 days, or a single trip abroad over 30 days, restarts the six-year clock (STA Announcement No. 34, 2019).
Tax-free expat allowances (election A): cash allowances for housing, children's education and language training remain IIT-exempt when paid against valid invoices — a policy extended through 31 December 2027 (MOF & STA Announcement No. 30, 2023). Electing them means you cannot claim special additional deductions for the same expenses. Most high-salary expats in tier-1 cities benefit more from election A; lower salaries with heavy family deductions may do better under election B — toggle both above and compare.
Social insurance: foreign employees are generally subject to China's social insurance (pension, medical, unemployment, work injury) plus the housing fund, unless a bilateral totalization agreement (Germany, Japan, South Korea and others) exempts specific items for a limited period. Check your city's expat enrollment policy.
Tax treaties may reduce withholding or allocate taxing rights differently — for example, the 183-day threshold often applies on a 12-month rolling basis with employer conditions. This calculator applies domestic law; consult the treaty or a tax advisor for cross-border cases.
The six-year rule: a resident without domicile is not immediately taxed on all worldwide income. Foreign-source income paid from outside China stays exempt until you have been a resident for six consecutive years; any year under 183 days, or a single trip abroad over 30 days, restarts the six-year clock (STA Announcement No. 34, 2019).
Tax-free expat allowances (election A): cash allowances for housing, children's education and language training remain IIT-exempt when paid against valid invoices — a policy extended through 31 December 2027 (MOF & STA Announcement No. 30, 2023). Electing them means you cannot claim special additional deductions for the same expenses. Most high-salary expats in tier-1 cities benefit more from election A; lower salaries with heavy family deductions may do better under election B — toggle both above and compare.
Social insurance: foreign employees are generally subject to China's social insurance (pension, medical, unemployment, work injury) plus the housing fund, unless a bilateral totalization agreement (Germany, Japan, South Korea and others) exempts specific items for a limited period. Check your city's expat enrollment policy.
Tax treaties may reduce withholding or allocate taxing rights differently — for example, the 183-day threshold often applies on a 12-month rolling basis with employer conditions. This calculator applies domestic law; consult the treaty or a tax advisor for cross-border cases.
❓ FAQ
What is the 183-day rule for foreigners in China?
Stay 183 days or more in a calendar year and you are a tax resident: you are taxed on worldwide income and file an annual reconciliation. Fewer than 183 days makes you a non-resident, taxed only on China-source income at the monthly rates, with no special additional deductions and no annual settlement.
Are expat housing and education allowances tax-free in China?
Yes, for now. Cash allowances for housing, children's education and language training paid against valid invoices remain exempt from IIT through 31 December 2027. You must elect them instead of the special additional deductions for the same expenses — you cannot claim both. After 2027 the policy may expire unless extended again.
Should I choose expat allowances or special additional deductions?
Compare both elections in this calculator. Roughly: if your invoice-backed allowances (especially rent in tier-1 cities) exceed the special additional deductions you qualify for, election A wins. Non-residents have no choice — special additional deductions are residents-only, so allowances are the only route.
Do foreigners pay social insurance in China?
Yes, in principle. China's Social Insurance Law requires employers to enroll foreign employees, and many cities also allow housing fund contributions. Employees covered by a bilateral social insurance (totalization) agreement — e.g. with Germany, Japan or South Korea — may be exempt from specific contributions for a limited period with a certificate.
What is the six-year rule for foreign tax residents?
A tax resident without Chinese domicile is not taxed on foreign-source income paid from abroad until they have been a resident for six consecutive years. If in any of those years you stay fewer than 183 days, or make a single trip abroad longer than 30 days, the six-year clock restarts — a major planning point for long-term expats.