Wage tax calculation method 2023 latest

The calculation method of salary tax in 2023: taxable income = salary income - social security personal contribution - 5000 yuan starting point. The specific tax payable is calculated by the applicable tax rate and quick deduction, and the tax rate ranges from 3% to 45%.

Since January 1, 2019, China has launched a reform of its new personal income tax system, changing the original categorical tax rate method to a combination of comprehensive and categorical. According to the latest individual tax rate table and quick deduction table jointly issued by the National Development and Reform Commission, the Ministry of Finance, the State Administration of Taxation and other departments, the calculation of individual tax on salary in 2023 is as follows:1. Formula for calculating taxable income: taxable income = salary income - social security personal contribution - 5,000 yuan starting point.2. Range of tax rates: from 3% to 45%, ***7 brackets. Among them, the tax rate of 3% applies when the taxable income does not exceed RMB 36,000, and the tax rate of 10% applies when it exceeds RMB 36,000 to RMB 144,000, and so on.3. Immediate Deductions: Each tax rate corresponds to a different number of immediate deductions. Usually, the number of quick deductions for higher tax rates is larger, which can effectively reduce the tax burden of taxpayers. It should be especially reminded that for the payment of social security provident fund, the purchase of commercial health insurance and other eligible expenditures, you can reduce the amount of taxable income within a certain range, thus reducing the tax burden of individuals.

How to calculate the personal income tax of year-end bonus? The personal income tax of year-end bonus is calculated on the basis of annual comprehensive income, so it is necessary to combine the amount of year-end bonus with other comprehensive income earned in the previous year. The specific calculation is as follows: 1) add the year-end bonus amount to the current year's salary income to calculate the current year's taxable income; and 2) combine it with other comprehensive income from the previous year to calculate the individual income tax based on the total annual amount of comprehensive income. It should be noted that the year-end bonus can also enjoy certain exemptions and reductions, such as the portion of the year-end bonus that does not exceed 3,000 yuan after dividing it by 12 months is exempt from personal income tax.

In the 2023 wage tax calculation method, the taxable income is determined by the wage income, social security personal contribution and the starting point **** the same, the specific tax payable is calculated by the applicable tax rate and quick deduction. Payment of personal income tax is the obligation of every citizen, but at the same time there are a number of relief policies available, the rational use of which can effectively reduce the personal tax burden. For other comprehensive income such as year-end bonus, you need to pay attention to its calculation and the tax policies you can enjoy.

Legal basis:

The Individual Income Tax Law of the People's Republic of China (PRC) Article 2 The following items of personal income shall be subject to individual income tax:

(1) Wages and salaries;

(2) Remuneration for labor;

(3) Manuscript remuneration;

(4) Royalty income;

(v) Income from business;

(vi) Income from interest, dividends and bonuses;