Year-End Bonus Tax Calculator
Calculate tax on Chinese year-end bonus using the annual bonus method
Enter bonus amount above to calculate
How to Use
- Enter the total year-end bonus amount before tax.
- Enter your monthly salary for the month you receive the bonus.
- Click 'Calculate Tax' to see the tax amount and after-tax bonus.
- The calculator uses China's preferential annual bonus tax method.
- Note: This method can only be used once per year.
About Year-End Bonus Tax
Annual Bonus Preferential Method
China allows a special preferential tax method for year-end bonuses (全年一次性奖金). Instead of adding the bonus to that month's income, you divide the bonus by 12, find the applicable tax bracket, then apply that rate to the entire bonus. This often results in less tax than adding it to regular income.
When Monthly Salary is Below 5,000
If your monthly salary is below 5,000 CNY, the deficit is deducted from the bonus first. For example, if salary is 4,000 CNY (1,000 below the 5,000 threshold), the taxable bonus = Year-end bonus − 1,000. The remaining amount is then divided by 12 to find the applicable bracket.
Bracket Trap Warning
Be aware of bracket traps with year-end bonuses. Due to the tax calculation method, receiving a slightly higher bonus can result in significantly less after-tax income if it crosses a bracket threshold. For example, a 36,000 bonus is taxed at 3%, but 36,001 is taxed at 10% — the extra 1 yuan costs hundreds in tax.
One-Time Use Per Year
The preferential annual bonus tax method can only be used once per tax year. If you receive multiple bonuses, only one can use this method; others must be added to monthly income. Starting from 2022, taxpayers can choose to have the bonus included in comprehensive income instead, which may be better depending on your total annual income.
Key Features
- Uses China's preferential annual bonus tax calculation method
- Handles case where monthly salary is below 5,000 CNY exemption threshold
- Shows tax amount, after-tax bonus, effective rate, and applicable bracket
- Warns about bracket trap scenarios