The personal income tax rate is the ratio of personal income tax to taxable income. The personal income tax rate is stipulated by the corresponding laws and regulations of the state and calculated according to personal income. Paying personal income tax is the obligation of citizens whose income reaches the payment standard.
Personal income tax calculation formula
The calculation formula of payroll tax is: tax payable = (salary income-five insurances and one gold-tax threshold) applicable tax rate-quick deduction.
After 20 18, 10, 1, the tax threshold is 5000. The calculation method of excess progressive tax rate is as follows:
Tax amount = monthly taxable income * tax rate-quick deduction
Finally, the wages received by the workers, that is, actual wages = wages payable-five insurances and one gold-tax payment.
Salary: that is, the initial income (the income written in the contract).
Three insurances and one gold: old-age insurance, medical insurance, unemployment insurance and housing accumulation fund (excluding work-related injury insurance and maternity insurance, which belong to five insurances and one gold).
Threshold: From 20 1 1, the threshold will be raised from 2,000 yuan to 3,500 yuan.
Tax rate: from 3% to 45%, there are 7 grades, corresponding to the tax payable in 7 different intervals.
Quick deduction: from 0 to 13505, there are also 7 grades, corresponding to different tax rates:
On June 19, the draft amendment to the individual income tax law, which attracted much attention, was submitted to the Third Session of the 13th the National People's Congress Standing Committee (NPCSC) for deliberation. This is the seventh overhaul of the tax law since the promulgation of 1980, and it will also usher in a fundamental change. It is understood that the tax threshold has been raised to 5000 yuan per month! In addition, special additional deductions such as mortgage rent, education and serious illness will be increased for the first time.
In terms of personal income tax rate, China implements seven levels of excessive progressive tax rate, and different taxable income ranges correspond to different tax rates, with the lowest tax rate of 3% and the highest tax rate of 45%. If the tax exemption standard is raised from 3,500 yuan to 5,000 yuan, individuals will pay less tax in 45 yuan if the monthly taxable income and tax rate remain unchanged. For people whose original monthly taxable income is 3500-5000 yuan, the benefit will be the greatest.
This tax reform will adjust the taxable income calculated on a monthly basis to an annual basis, and optimize the adjustment of some tax rates. The specific tax rates are adjusted as follows: the tax rate of 3% is doubled, and the current tax rate 10% is reduced to 3%; The tax rate of 10% will be greatly expanded, and the income with the current tax rate of 20% and the part with the current tax rate of 25% will be reduced to10%; The current tax rate is reduced from 25% to 20%; Reduce the tax rate by 25% accordingly; The higher tax rates of 30%, 35% and 45% remain unchanged.
It is worth mentioning that in this revision of the tax law, anti-tax avoidance clauses have been added. Anti-tax avoidance is mainly aimed at high-income groups. Under the marginal tax rate with higher progressive tax rate, high-income groups will face higher taxes, so they often take various tax avoidance measures. At the same time, because they have more resources and means, the success rate of tax avoidance is not low. Judging from the contribution to individual tax, high-income earners are far less than middle-income earners. The addition of anti-tax avoidance clauses this time is expected to improve this phenomenon.
This article is the latest policy about 20 18 tax deduction standard, and I hope it will help you.