How to calculate personal income tax? What does the applicable tax rate mean?

Because the personal income tax rate is an excess progressive tax rate, that is, in the case of different tax amounts, the applied tax rate may be different. Therefore, there is a theory of applicable tax rates.

Generally, for the sake of easy calculation, quick deductions are introduced, and the calculation formula is as follows:

Individual income tax payable = personal income payable * applicable tax rate - quick deduction.

Individual income tax payment regulations: personal income does not need to be paid within 2,000 yuan, more than 2,000 yuan and more than 2,000 yuan: more than 500 yuan to 2,000 yuan, the tax rate is 10%, the quick deduction is 25 more than 2,000 yuan to 5,000 yuan, the tax rate is 15%, the quick deduction is 125 more than 5,000 yuan to 20,000 yuan, the tax rate is 20%, the quick deduction is 375 more than 20,000 yuan to 40,000 yuan, the tax rate is 25%, The quick deduction is 1375 The part exceeding 40,000 yuan to 60,000 yuan is taxed at 30%, the quick deduction is 3375 The part exceeding 60,000 yuan to 80,000 yuan is taxed at 35%, the quick deduction is 6,375 The part exceeding 80,000 yuan to 100,000 yuan is taxed at 40%, and the quick deduction is 10,375 The part exceeding 100,000 yuan is taxed at 45%, and the quick deduction is 15,375

Income multiplied by applicable tax rate minus quick deduction = tax. The applicable tax rate refers to the appropriate tax rate according to the size of the income. The tax rate is divided into several levels, and each level has a corresponding income range.

Personal income tax is assessed on the payment of the property.

Individual income tax is taxed on an excess progressive basis.

Article 3 of the Individual Income Tax Law The tax rate of individual income tax:

1) For comprehensive income, an excess progressive tax rate of 3% to 45% shall be applied (the tax rate table is attached);

2) For business income, an excess progressive tax rate of 5% to 35% shall be applied (the tax rate table is attached);

3) Income from interest, dividends and bonuses, income from property leases, income from property transfer and incidental income shall be subject to a proportional tax rate of 20%.

Individual Income Tax Rate Table 1 (Applicable to Comprehensive Income).

The annual taxable income exceeds the tax rate of 36,000 yuan (3).

The annual taxable income exceeds the tax rate of 36,000 yuan to 144,000 yuan (10).

The tax rate for the part of the annual taxable income exceeding 144,000 yuan to 300,000 yuan (20).

The tax rate for the part of the annual taxable income exceeding 300,000 yuan to 420,000 yuan25

The tax rate for the part of the annual taxable income exceeding 420,000 yuan to 660,000 yuan is 30

The tax rate for the part of the annual taxable income exceeding 660,000 yuan to 960,000 yuan35

The tax rate for the part of the annual taxable income exceeding 960,000 yuan45

Note 1: The annual taxable income mentioned in this table refers to the balance of the comprehensive income obtained by a resident individual in accordance with the provisions of Article 6 of this Law after deducting expenses of 60,000 yuan from the income of each tax year, as well as special deductions, special additional deductions and other deductions determined in accordance with the law.

Note 2: The income from wages and salaries, remuneration for labor services, author's remuneration and royalties obtained by non-resident individuals shall be calculated according to this table after monthly conversion. ）

Individual Income Tax Rate Table 2 (applicable to business income).

The annual taxable income does not exceed the tax rate of 30,000 yuan5

The tax rate for the part of the annual taxable income exceeding 30,000 yuan to 90,000 yuan10

The tax rate for the part of the annual taxable income exceeding 90,000 yuan to 300,000 yuan is 20

The tax rate for the part of the annual taxable income exceeding 300,000 yuan to 500,000 yuan is 30

The tax rate for the part of the annual taxable income exceeding 500,000 yuan35

Note: The annual taxable income mentioned in this table refers to the balance after deducting costs, expenses and losses from the total income of each tax year in accordance with the provisions of Article 6 of this Law. ）

The individual income tax rate refers to the ratio between the amount of personal income tax and the amount of taxable income, and the applicable tax rate of individual income tax is determined according to different income types and income levels. Individual income tax refers to the taxes and fees paid by natural persons, legal persons and unincorporated persons in the process of management on the income generated in the process.

The individual income tax rate refers to the ratio between the amount of personal income tax and the amount of taxable income, and the applicable tax rate of individual income tax is determined according to different income types and income levels. Individual income tax refers to the taxes and fees paid by natural persons, legal persons and unincorporated persons in the process of management on the income generated in the process.

1. Individual income tax rate

The personal income tax rate is the ratio between the amount of personal income tax and the amount of taxable income. The personal income tax rate is set by the corresponding laws and regulations of the state and is calculated based on the individual's income. Paying individual income tax is the obligation of citizens whose income meets the payment standard.

On August 31, 2018, the fifth meeting of the Standing Committee of the 13th National People's Congress voted and passed the decision on amending the Individual Income Tax Law; The decision will come into effect on January 1, 2019, but some tax reduction policies, such as raising the tax threshold to 5,000 yuan per month, will be implemented from October 1, 2018.

Personal Income Tax Rate:

1.For comprehensive income, a progressive tax rate of 3% to 45% is applied;

2.For business income, the progressive tax rate of 5% to 35% and elimination is applicable;

3.Income from interest, dividends and bonuses, income from property leases, income from property transfer and incidental income shall be subject to a proportional tax rate of 20%.

2. What does personal income tax mean?

Individual income tax is a general term for the legal norms that regulate the social relations between the taxing authorities and natural persons in the process of collecting and managing individual income tax. According to the law, the threshold of individual income tax is 5,000 yuan, which is calculated as taxable income = monthly income - 5,000 yuan threshold - special deduction - special additional deduction - other deductions determined according to law. Remind you that the scope of personal income tax collection:

Income from wages and salaries: income from production and operation of individual industrial and commercial households; income from contracted and leased operations of enterprises and institutions; Income from remuneration for labor services; income from author's remuneration; royalty income; interest, dividends, dividends, dividends; income from the lease of property; income from the transfer of property; Incidental gains; Other income that is taxed by the financial department of the first country.

3. Individual income tax items

The tax items of individual income tax can be divided into three categories: labor income, business income, and other income, and the tax items of individual income tax can be divided into eleven subcategories:

1.income from wages and salaries;

2.income from production and operation of individual industrial and commercial households;

3.income from contracted and leased operations of enterprises and institutions;

4.Income from remuneration for labor services;

5.income from author's remuneration;

6.royalty income;

7.Interest, dividends, dividends, and dividends;

8.income from the lease of property;

9.income from the transfer of property;

10.Incidental gains;

11.Other income.

Adoption: Excess progressive tax rate. According to the provisions of the tax law, the income from wages and salaries is subject to a progressive tax rate of 3% to 45%.

Taxation is calculated on the basis of monthly taxable income. The tax rate is divided into 7 levels according to the taxable income of individual monthly wages and salaries, with the highest level being 45 and the lowest level being 3.

Payment of tax calculation:If the individual's monthly wages and salaries are higher than (or equal to) the expense deduction standard stipulated by the tax law, the tax calculation formula is: tax payable = the applicable tax rate of the annual one-time bonus obtained by the individual in the current month - the number of quick deductions.

If the individual's monthly salary and salary income is lower than the expense deduction standard stipulated in the tax law, the tax calculation formula is: tax payable = (the difference between the individual's annual one-time bonus in the current month - the difference between the individual's salary and salary income and the expense deduction standard in the current month) Applicable tax rate - quick deduction.

The tax rate of comprehensive income, business income and interest, dividends and bonus income is adopted for the payment of individual income tax.

Individual income tax stipulates three different tax rates according to different tax items:

1. Comprehensive income, including income from wages and salaries, income from remuneration for labor services, income from author's remuneration and income from royalties, shall be subject to a 7-level excess progressive tax rate, and the tax shall be calculated and levied on the basis of monthly taxable income. The tax rate is divided into 7 levels according to the taxable income of individual monthly wages and salaries, with the highest level being 45 and the lowest level being 3.

2. The business income shall be subject to 5 levels of excess progressive tax rate, and the annual taxable income of individual industrial and commercial households calculated annually and prepaid in monthly tax shall be applied, with the lowest level being 5% and the highest level being 35%, a total of 5 levels;

3. Proportional tax rate: Individual income tax is levied on individual interest, dividends, bonuses, property lease income, property transfer income, incidental income and other income, and the proportional tax rate of 20% is applied.

Legal basis] Individual Income Tax Law of the People's Republic of China

Article 3 The tax rate of individual income tax:

1) For comprehensive income, an excess progressive tax rate of 3% to 45% shall be applied (the tax rate table is attached);

2) For business income, an excess progressive tax rate of 5% to 35% shall be applied (the tax rate table is attached);

3) Income from interest, dividends and bonuses, income from property leases, income from property transfer and incidental income shall be subject to a proportional tax rate of 20%. Article 2 Individual income tax shall be paid on the following personal income:

1) Income from wages and salaries;

2) Income from remuneration for labor services;

3) Income from author's remuneration;

4) Income from royalties;

5) Business income;

6) Income from interest, dividends and bonuses;

7) Income from property lease;

8) Income from the transfer of property;

9) Incidental gains.

Resident individuals who obtain the income from items 1 to 4 of the preceding paragraph (hereinafter referred to as "comprehensive income") shall calculate individual income tax on a consolidated basis according to the tax year; For non-resident individuals who obtain the income in items 1 to 4 of the preceding paragraph, the individual income tax shall be calculated on a monthly or sub-itemized basis. Taxpayers who obtain the income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this Law.