How to calculate the after-tax salary?

Legal analysis: 1. What is pre-tax salary?

According to the definition of individual income tax law, income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment. Pre-tax salary in the sense of tax payment refers to the accumulation of various monthly incomes (wage income).

2. What is after-tax salary?

After-tax salary is the actual salary after deducting social security individual contributions, provident fund individual contributions and personal income tax from pre-tax salary.

For most people's salary range, the personal contribution of social security accounts for 1 1% of the pre-tax salary (8% for old-age insurance, 2% for medical insurance, and 1% for unemployment insurance), while the contribution ratio of housing provident fund (the same for individuals and units) varies from 5% to 12% according to different regions. The unit contribution of social security accounts for about 30% of the pre-tax salary. Personal contributions to social security and provident fund are paid (deducted) before tax.

3. After-tax wage calculation formula (personal income tax calculation method)

After-tax income = pre-tax income-(individual social security contribution+provident fund contribution)-individual income tax

These include:

Individual income tax = (taxable income-deduction standard) × applicable tax rate-quick deduction

Taxable income = pre-tax income-(individual social security contribution+provident fund contribution)

The deduction standard (or "threshold") is 3,500 yuan for China citizens (1, 2012,000 yuan before September 8). For taxpayers who have no domicile in China but get income from wages and salaries in China, and taxpayers who have domicile in China but get income from wages and salaries outside China, an additional deduction of 1.300 is determined.

For applicable tax rates and quick deduction, please refer to the latest tax rate table and quick deduction.

Legal basis: Article 2 of the Individual Income Tax Law of People's Republic of China (PRC) levies individual income tax on the following personal income:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.