Freelance Income Tax Calculator

Freelance Income Tax Calculator: Core Features and Principles

Personal income tax must be paid on freelance income (labor remuneration) exceeding 800 RMB, but the calculation rules are complex. Based on current Chinese tax laws, this tool automatically completes three key steps: first, it deducts a 20% expense allowance (taxable income = revenue × 80%); then, it calculates the tax amount based on a three-tier progressive tax rate; and finally, it outputs your after-tax income. It is especially useful for calculating single freelance payments over 4,000 RMB.

Why Choose Our Freelance Income Tax Calculator?

• Strictly follows the latest tax laws: Real-time updates for the three-tier progressive tax rates (20% / 30% / 40%) and quick deduction amounts.
• Comprehensive results: Simultaneously displays taxable income, applicable tax rate, quick deduction amount, and after-tax income.
• Zero learning curve: Simply enter the pre-tax amount, and the complex calculation process is completed automatically.

How to Use

1. Enter the pre-tax freelance income amount in the input box (e.g., 50000).
2. Click the "Calculate" button.
3. View the detailed calculation results: The system will automatically display the taxable income after the 20% expense deduction and calculate the tax based on the corresponding rate.

Frequently Asked Questions (FAQ)

How much tax do I pay on 50,000 RMB of freelance income?
Tier 1: 40,000 RMB (50,000 × 80%) is calculated at a 30% tax rate, resulting in a tax payable of 10,000 RMB (40,000 × 30% - 2,000).

What is the difference in tax calculation between freelance income and standard salary?
Freelance income deducts a 20% expense allowance before tax calculation, while standard salary deducts a 5,000 RMB monthly threshold. The maximum withholding tax rate for freelance income is 40%, whereas standard salary maxes out at 45%, but both are subject to comprehensive income annual reconciliation.

Important Notes

The entered amount should be a single pre-tax payment. During the annual tax reconciliation, freelance income will be merged into comprehensive income and recalculated. The calculation results do not include Value-Added Tax (VAT) or other surcharges. Different calculation rules apply to non-resident individuals.

Pro Tips & Usage Advice

Typical scenario: A designer receives a single freelance payment of 100,000 RMB. After deducting 20,000 RMB for expenses (20%), the remaining 80,000 RMB is taxed at a 40% rate, resulting in a final tax of 25,000 RMB (80,000 × 40% - 7,000). For large freelance payments, it is recommended to use installment payments. Keeping a single payment under 20,000 RMB allows you to apply the lower 20% tax rate.