How to Calculate Your Own Personal Tax

Calculating one's personal income tax is a relatively complex process that requires consideration of a variety of factors, including the type of income, amount of income, and deductions. Generally speaking, you can do the calculation through the following steps: first, determine the type of your income, such as salary and wages, labor compensation income, etc.; second, according to the type of income, find the corresponding tax rate and quick deduction; then, subtract the amount of income from the allowable deductions, such as social security, provident fund, children's education, and other special additional deductions; and finally, in accordance with the calculation method stipulated by the tax law, to arrive at the amount of payable The amount of personal income tax to be paid will be calculated according to the method of calculation stipulated in the tax law.

I. Determining the Type of Income

Individual income tax is collected according to different types of income. Common types of income include salary income, labor compensation income, remuneration income, royalty income, business income, interest, dividend, bonus income, property rental income, property transfer income, and incidental income. Therefore, before calculating personal income tax, you first need to clarify the type of income you have.

Search for tax rates and quick deductions

Based on the type of income, search for the corresponding tax rates and quick deductions. The tax law provides for tax rates for different types of income and, for ease of calculation, for quick deductions. These tax rates and quick deductions can be found in the tax law or in documents issued by the relevant tax authorities.

Three: Calculating Taxable Income

Taxable income is the amount of taxable income minus allowable deductions. Allowable deductions include basic personal deductions and special additional deductions. The basic personal deductions are the fixed amount of monthly deductions available to each individual as stipulated in the tax law, while the special additional deductions include expenditures for children's education, continuing education, medical treatment for major illnesses, interest on housing loans, housing rent, and support for the elderly. The specific amounts and conditions for these deductions can be found in the tax law or documents issued by the relevant tax authorities.

Fourth, calculate the taxable amount

Based on the taxable income and the corresponding tax rate and quick deduction, the amount of personal income tax payable is calculated in accordance with the calculation method stipulated in the tax law. The specific calculation method may vary depending on the type of income, but generally follows the principle of multiplying the taxable income by the applicable tax rate and subtracting the number of quick deductions.

In summary:

Calculating one's personal income tax needs to take into account a number of factors, including the type of income, tax rate, and deductions. In the process of calculation, you need to follow the methods and standards stipulated in the tax law to ensure the accuracy and legality of the calculation.

Legal basis:

The Individual Income Tax Law of the People's Republic of China*** and the State of China

is the main legal basis for calculating individual income tax. The law stipulates the taxpayers, types of income, tax rates, and deductions for individual income tax. When calculating personal income tax, it should be carried out in strict accordance with the provisions of the Act. In particular, there are clear legal provisions on the division of income types, the application of tax rates, and the specific amounts and conditions of deductions.