Individual tax starting point increased to 5,000, monthly income of 10,000 yuan can save 255 yuan, the most beneficiaries are wage earners

Recently, the individual tax law ushered in the seventh overhaul, the Ministry of Finance also announced some reform details: 1, wages and salaries, remuneration for services, manuscripts and royalties and other four labor income for the first time to implement a comprehensive tax; 2, the starting point of the individual tax from 3,500 yuan per month to 5,000 yuan per month (60,000 yuan per year);

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Recently, the individual tax law ushered in the seventh overhaul, and the Ministry of Finance also announced some reform details:

1, wages and salaries, remuneration for labor, manuscripts and royalties, and other four labor income for the first time to implement a comprehensive tax;

2, the starting point of the individual tax from 3,500 yuan per month to 5,000 yuan per month (60,000 yuan per year);

3, the first time to Increase children's education expenses, continuing education expenses, medical expenses for serious illnesses, housing loan interest and housing rent and other special additional deductions;

4, optimize the adjustment of the tax rate structure, expanding the lower tax brackets

The starting point of personal tax was raised to 5,000 yuan, which means that many people's wallets are about to bulge!

How much has the tax been reduced? Let's take a look at a table to see the changes in tax payment before and after the adjustment of the tax for different groups:

The formula for calculating the tax on wages: taxable amount = (income from wages and salaries - "five insurance and one gold" - deductions) x applicable tax rate - quick-impact tax rate The taxable amount = (salary income - "five insurance and one pension" - deductions) × applicable tax rate - quick deduction.

In terms of tax rate, China has adopted a seven-tier super progressive tax rate, with different taxable income ranges corresponding to different tax rates, the lowest tax rate being 3% and the highest being 45%. The tax rates are shown in the following table:

How in the world can we save money? Let's do some rough math.

If the monthly salary income of 10,000 yuan, the original application of 3%, 10%, 20% tax rate, you need to pay personal tax 345 yuan;

After the reform due to the expansion of the 20% tax bracket, the 20% tax rate is reduced to 10%, the tax is about 90 yuan, tax cuts of 255 yuan, a reduction of 74%.

That is to say, the monthly income increased by 255 yuan more, the monthly meal you can add a lot more chicken legs.

Look at the different cities, you can "earn" how much money?

The tax overhaul will benefit wage earners the most!

China's low starting point for personal tax has been the focus of social discussion, and personal tax has put enormous pressure on the working class.

For wage earners, most people's salaries are between 6,000 and 50,000 yuan, the higher the salary, the more the tax:

North, Guangzhou and Shenzhen wage earners have become the main force of tax payment

Data from the Ministry of Finance shows that China's personal tax payments have been increasing year by year.In 2017, the personal income tax was 1196.6 billion yuan, an increase of 18.6% year-on-year! Take a look at the growth of China's personal tax:

Why is personal tax growing fast?

The Ministry of Finance has explained that the reason for the rapid growth of personal tax "is mainly due to the impact of the growth of residents' income, the increase in income from property transfers, etc.". Professionals analyzed that: residents of all kinds of income did have a relatively large increase; personal tax exemption starting point is still the standard six years ago. This leads to part of the increased income to pay higher personal tax.

The working class has become the absolute main force of tax payment. Some data show that the monthly income of people earning more than 10,000 yuan in that year's wage and salary income tax, accounting for nearly 70% of the income from wage and salary income items.

Which cities pay more personal taxes and are under pressure?

We can look at this city salary table:

City Distribution of Average Salary in the Winter Job Hunting Period of 2017

Beijing, Guangzhou and Shenzhen are the main force of paying personal tax. A friend said that he works in Beijing, the income looks quite a lot, 30,000 before tax, excluding social security tax, to about 20,000 in hand. However, the expenses are also frighteningly high. At the top of the list is the mortgage. In big cities, countless families are like him, with heavy mortgage pressure. The little bit of salary they increase, but also swallowed by the personal tax.

But in the near future, wage earners will also gain with the tax overhaul.

The country's policies are getting better and better, tax policies are getting more and more favorable, and the starting point for personal tax has been raised, so everyone's income will be able to rise in the future!

The Ministry of Finance on the introduction of this tax reform and the implementation of time

One, the current starting point and pre-tax deductions

The Ministry of Finance introduced the income from wages and salaries have a starting point, in tax terminology is called the "basic deduction standard", commonly known as the "starting point". The "starting point" is now 3,500 yuan per month, and more than 3,500 yuan is taxed according to an over-progressive tax rate arrangement.

Reform the personal income tax system, according to changes in the level of basic living consumption of the residents, reasonably increase the standard of basic deductions, and increase the deduction of special expenses such as children's education and medical treatment for major illnesses.

Second, how to raise the starting point?

The Ministry of Finance said that it will be determined according to the changes in the level of consumption of basic living of the residents, and put forward a proposal to raise the starting point of a policy proposal.

In addition to the 5,000 yuan for consideration, there are 2 mainstream voices:

One is 7,000 yuan. At this year's two sessions, the National Federation of Industry and Commerce proposal suggests raising the starting point of personal tax to 7,000 yuan, and also suggests lowering the top marginal rate of personal income tax from 3%-45% to less than 3%-30%.

The other is 10,000 yuan. Also in this year's two sessions, CPPCC member Dong Mingzhu on the proposal, suggesting reform of the starting point of personal tax to 10,000 yuan. Ms. Dong proposal is deeply popular, naturally applauded.

Three, when to start implementing

Because personal income tax is a personal income tax law, the draft is determined, it will be submitted to the Standing Committee of the National People's Congress in accordance with the procedures for deliberation, after the review to organize the implementation of the implementation of the projected may be implemented within the year.

All of these elements of the reform, need to be through the revision of the personal income tax tax law before it can be finalized.

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