# 个体工商户个税计算 2026 — China self-employed tax

Source page: https://valem.run/calculators/china/self-employed

An individual business (个体工商户) in China pays individual income tax on its business income at 5% to 35%, after its owner’s own social insurance and a 60,000 yuan basic deduction (if the owner has no salary income), and from 2023 to 2027 the tax on the first 2 million yuan of taxable income is halved.

**Tax year:** 2026

## How it is calculated

Business income (经营所得) is the year’s revenue less costs, expenses and losses. An owner with no salary deducts **60,000 yuan** plus their own social insurance, and the rest is taxed at **5%, 10%, 20%, 30% and 35%** on bands that break at 30,000, 90,000, 300,000 and 500,000 yuan — a different, steeper table from the one for wages.

**The halving.** From 1 January 2023 to 31 December 2027 an individual business pays only half the tax on taxable income up to **2 million yuan**. The relief is half of the tax computed on the first 2 million: the State Taxation Administration’s example 3 takes 2,400,000 yuan of taxable income and 634,500 yuan of tax on the first 2 million, so with no other relief the halving is 317,250 (the example also nets off a 6,000 disability relief pro rata, giving 314,750). Below 2 million the whole bill simply halves — 140,000 yuan taxable is 17,500 of tax, so 8,750 to pay.

**Social insurance in your own name** (Beijing, from July 2026, registered as an individual with a public HR service centre): pension 20% and unemployment 1% on a base you choose between 7,270 and 36,348 yuan a month, plus a flat 593.68 yuan a month of medical insurance. At the lowest base that is **25,444.56 yuan** a year, and it is deductible. With salary income as well, the 60,000 and your insurance come off the salary instead (implementing regulations art. 15). Deemed-profit (核定) assessment and the children and parents deductions are not modelled. Estimate, not tax advice.

## Worked example

With Annual business profit of 200,000 CNY, this model computes Net income / year 168,349.89 CNY.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `profitAnnual` | Annual business profit (CNY) | number |
| `socialInsurance` | Social insurance | string |
| `contributionBase` | Chosen monthly contribution base (7,270 to 36,348) | number |
| `hasSalary` | I also have salary or other comprehensive income | boolean |

## Sources

- [Individual Income Tax Law of the PRC (个人所得税法, seventh amendment 2018, 全文有效): art. 6(3) and Schedule 2, the 5–35% business-income table](https://fgk.chinatax.gov.cn/zcfgk/c100009/c5193028/content.html) (checked 2026-10-31)
- [Regulations for the Implementation of the IIT Law (个人所得税法实施条例, State Council 2018, 有效 on the national law database), art. 15: a business-income earner with no comprehensive income deducts 60,000 yuan, special deductions and special additional deductions](https://flk.npc.gov.cn/detail?id=ff8080816f3cbb3c016f4122d8d9194b) (checked 2026-10-31)
- [State Taxation Administration Announcement 2023 No. 12 (全文有效): individual businesses’ taxable income up to 2 million yuan is taxed at half, 2023-01-01 to 2027-12-31, with the relief formula](https://fgk.chinatax.gov.cn/zcfgk/c100012/c5213596/content.html) (checked 2026-10-31)
- [STA 解读 of Announcement 2023 No. 12, part 7: the relief formula and worked examples 2–3](https://www.chinatax.gov.cn/chinatax/n810341/n810760/c5210467/content.html) (checked 2026-10-31)
- [Beijing HRSS Bureau et al., 京人社发〔2026〕7号 (20 Aug 2026): people insured in their own name choose a base between 7,270 and 36,348 yuan and pay 7,269.6 / 363.48 yuan of pension / unemployment at the upper limit and 1,454 / 72.7 at the lower (20% and 1%), and 593.68 yuan a month of medical insurance](https://rsj.beijing.gov.cn/xxgk/2024zcwj/202608/t20260821_4831461.html) (checked 2026-10-31)

## What this page claims

The Valem engine reproduces this model's formula through 7 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/china/self-employed.json
- Compute by URL: https://valem.run/calculators/china/self-employed.json?profitAnnual=200000
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `china/self-employed`)