The formula for calculating personal income tax from annual salary is: taxable income = annual salary - threshold. The applicable tax rate and quick calculation deductions are determined based on the amount of taxable income, and the personal income tax is finally calculated.
Personal income tax refers to a tax paid by individuals on various types of income paid and obtained in accordance with legal tax rates and methods. When calculating personal income tax, you first need to determine the taxable income. The formula is: taxable income = annual income - deductions for expenses - special additional deductions - basic deductions for expenses - deductions for specific expenses such as donations. Among them, annual income includes wages, salary income, labor remuneration income, author remuneration income, royalties income, etc. Deducted expenses include children’s education, continuing education, housing rent, elderly care, serious illness medical treatment, etc. Special additional deductions include children’s education, continuing education, housing rent, housing loan interest, supporting the elderly, serious illness medical treatment, housing rental, housing loan interest, etc. The applicable tax rate and quick calculation deductions are determined based on the amount of taxable income. According to the current provisions of the Personal Income Tax Law, the comprehensive income tax rate is divided into seven levels, namely 3%, 10%, 20%, 25%, 30%, 35%, and 45%. Quick calculation deductions refer to fixed deductions provided between different tax brackets based on the size of taxable income. To finally calculate the amount of personal income tax payable, the formula is: taxable income × tax rate – quick calculation deduction. It should be noted that personal income tax is an important financial expense and needs to be paid in a timely manner. At the same time, individuals can also reduce their tax burden by reasonably planning their salary structure and using special additional deductions.
What is the threshold for personal income tax? According to the latest personal income tax law, the starting point for personal income tax is 5,000 yuan.
Personal income tax is an important economic tax. When calculating, you need to pay attention to various income, expenses, deductions and other factors. At the same time, appropriately reducing the personal income tax burden is also an important policy task. As a taxpayer, you should abide by relevant laws and regulations and perform your tax payment obligations in a timely manner.
Legal basis:
Article 9 of the "Individual Income Tax Law of the People's Republic of China" The taxable income of a taxpayer refers to all items obtained within a tax year Income shall be the balance after deducting the expenses and special deductions specified in Article 6 of this Law.