As an English Teacher, how much tax will I pay?
Income Tax for English Teachers in China
Paying taxes as a teacher in China is easy; it is a lot like back at home where your employer would calculate the tax and take it out of your salary without you having to see it. You’ll be pleased to learn that tax in China is comparatively low, but of course it is still useful to calculate so that you know what will be in your pocket each month – for entertainment, travel and saving!
Note that many employers state a net salary in their job description, i.e the salary that you will get after tax. Some employers, however, state a gross ‘before tax’ salary, so do double check this during an interview and within an employment contract.
A very useful Tax in China calculator can be found here
This can be used to work out how much income tax and social insurance you will have to pay on your salary each month.
Ex-pats are responsible for paying tax on salary over RMB4800. Tax in China is calculated per month, and to calculate how much to pay you need to work out how much salary you have over RMB4800. You then pay tax on these earnings, the percentages are outlined in the table below.
You will also have social insurance deductions from your salary, which differ depending on the city you are working in. See here to calculate your tax and social insurance deductions.