China
China special additional deductions
7 min read · Last updated 1 November 2026 · Tax Globy editorial team
China taxes salary as part of annual comprehensive income, and the basic deduction of CNY 60,000 a year is only the first relief. Special additional deductions cover children, elderly parents, housing and medical costs, and they reduce taxable income further. The calculator does not apply them, so the tax it shows is an upper bound.
The basic deduction comes first
China taxes salary as part of annual comprehensive income. The basic deduction of CNY 60,000 a year, or CNY 5,000 a month, comes off first and needs no receipts or supporting documents.
Employee social insurance and housing fund contributions usually come off before that, so taxable income can be well below the salary in the contract. Rates then run from 3% to 45% on what remains.
What the special additional deductions cover
Special additional deductions are targeted reliefs for specific costs. The table lists the verified monthly and annual amounts.
They reduce taxable income rather than the tax itself, so their value depends on the marginal rate that applies to the income they remove.
| Deduction | Amount |
|---|---|
| Children education | CNY 2,000 per child per month |
| Infant care under 3 | CNY 2,000 per child per month |
| Elderly care, only child | CNY 3,000 per month |
| Housing loan interest | CNY 1,000 per month |
| Housing rent | Up to CNY 1,500 per month, depending on city |
| Continuing education | CNY 400 per month or CNY 3,600 a year |
| Serious illness medical costs | Up to CNY 80,000 a year |
Run your own numbers
The calculator applies the rates described in this guide and shows the band-by-band breakdown.
Open the China calculatorChildren and infant care
Children education and infant care are both CNY 2,000 per child per month. A household with one child in education and one child under three can therefore claim CNY 4,000 a month, or CNY 48,000 for the year, before any other relief.
The amounts are per child, so the relief grows with family size. At a 10% marginal rate, CNY 48,000 of deduction is worth CNY 4,800 of tax; at 20% it is worth CNY 9,600.
Elderly care and housing
An only child can deduct CNY 3,000 a month for elderly care, which is CNY 36,000 a year. Housing loan interest is CNY 1,000 a month, and housing rent is up to CNY 1,500 a month depending on the city.
The rent figure is the one that varies most, because it depends on where you live rather than on a single national rule. The other amounts are fixed, so the yearly value is easy to work out.
Education and medical costs
Continuing education can be deducted at CNY 400 a month or CNY 3,600 a year, depending on the form the study takes. Serious illness medical costs can be deducted up to CNY 80,000 a year.
These are the two reliefs with the widest range. A continuing education claim is fixed and predictable, while a medical claim depends on the year and on the expenses actually incurred.
Why the estimate is an upper bound
The calculator applies the basic deduction and the default contribution rates, but it does not apply the special additional deductions. Taxable income is therefore higher than it needs to be for anyone who claims them, and the tax shown is a ceiling.
The gap can be large. A household claiming CNY 48,000 for two children removes 48,000 from taxable income at whatever rate applies, so the real bill falls by that amount multiplied by the marginal rate.
Estimates only; special additional deductions are not applied, so the result is an upper bound.
Working out what a deduction is worth
Multiply the annual deduction by the marginal rate you face. At 3% a CNY 24,000 deduction is worth 720; at 20% it is worth 4,800; at 45% it is worth 10,800.
That is why the same deduction helps a higher earner more, and why the relief should be described as a reduction in taxable income rather than a reduction in tax.
Common questions
Are the special additional deductions applied in the calculator?
No. The estimate uses the basic deduction and default contributions only, so the tax shown is an upper bound for anyone who claims them.
How much is the basic deduction?
CNY 60,000 a year, which is CNY 5,000 a month, and it needs no supporting documents.
Do the deductions reduce tax or income?
They reduce taxable income. The tax saving is the deduction multiplied by the marginal rate that applies to the income removed.
Does housing rent have a fixed national amount?
No. The limit is up to CNY 1,500 a month and depends on the city.
Written and maintained by the Tax Globy editorial team
Tax Globy is an independent calculator project. Every rate, threshold and deduction is checked against the published official source listed on the page, and each page shows when it was last reviewed.
Last reviewed 1 November 2026 · Estimates only, not tax advice.
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