Recently, the tax law ushered in the seventh overhaul, and the Ministry of Finance also announced some reform details:
1, wages and salaries, labor remuneration, royalties and other four labor income are subject to comprehensive taxation for the first time;
2. The tax threshold is raised from 3,500 yuan per month to 5,000 yuan per month (60,000 yuan per year);
3. For the first time, increase special additional deductions such as children's education expenditure, continuing education expenditure, serious illness medical expenditure, housing loan interest and housing rent;
4. Optimize and adjust the tax rate structure, and expand the lower tax rate range.
Raising the tax threshold to 5000 yuan means that many people's wallets will soon swell up!
How much has the individual tax dropped? Let's look at the tax payment changes of different groups before and after the individual tax adjustment through a table:
Calculation formula of individual tax on wages: tax payable = (income from wages and salaries-"five insurances and one gold"-deduction) × applicable tax rate-quick deduction.
In terms of tax rate, China implements seven levels of excessive progressive tax rate, and different taxable income ranges correspond to different tax rates, with the lowest tax rate of 3% and the highest tax rate of 45%. The specific tax rates are shown in the following table:
How on earth can we save money? Let's make a rough calculation.
If the monthly salary income is 10000 yuan, the original tax rates of 3%, 10% and 20% are applicable, and a tax of 345 yuan is required;
After the reform, due to the expansion of the 20% tax rate, the 20% tax rate was reduced to 10%, and the tax payment was about 90 yuan, with a tax reduction of 255 yuan, a decrease of 74%.
That is to say, the monthly income will increase by 255 yuan, and you can add a lot of drumsticks every month.
How much money can you "earn" by looking at different cities?
Wage earners benefit the most from the tax reform!
The tax threshold in China is too low, which has always been the focus of social discussion. Individual tax has caused great pressure on the working class.
For wage earners, most people earn 6,000-50,000 yuan. The higher the salary, the more taxes:
Northern Guangzhou, Shenzhen and Shenzhen wage earners have become the main force to pay taxes.
According to the data of the Ministry of Finance, the tax payment in China has increased year by year. 20 17 personal income tax1196.6 billion yuan, up 18.6% year-on-year! Look at the growth rate of individual tax in China:
Why is the tax increasing rapidly?
The Ministry of Finance once explained that the reason for the rapid growth of individual tax is "mainly affected by the increase of residents' income and the increase of property transfer income". According to professional analysis, the income of residents has indeed increased by a large margin; The tax exemption threshold is still the standard six years ago. This leads to a higher tax on some of the increased income.
The working class has become the absolute main force of individual tax payment. According to statistics, the income tax from wages and salaries of people whose monthly income was above 1 10,000 in that year accounted for nearly 70% of the project income from wages and salaries.
Which cities pay more taxes and are under great pressure?
We can look at the salary table of this city:
Urban distribution of average salary during winter job search in 20 17 years
Beishangguangshen and Shenzhen are the main force to pay individual taxes. A friend said that he works in Beijing, and his income looks quite large, 30 thousand before tax, and about 20 thousand after excluding social security tax. However, the expenditure is also alarmingly high. The first place is the mortgage. In big cities, countless families, like him, have heavy mortgage pressure. Their little salary increase was also swallowed up by a tax.
However, in the near future, wage earners will also benefit from the tax reform.
The national policy is getting better and better, the tax policy is getting more and more favorable, the tax threshold is raised, and everyone's income can be improved in the future!
Ministry of Finance's introduction and implementation time of this tax reform
I. Current threshold and pre-tax deduction items
According to the Ministry of Finance, there is a threshold for income from wages and salaries, which is called "basic expense deduction standard" in tax terminology, commonly known as "threshold". Now it is 3,500 yuan per month, and more than 3,500 yuan is taxed according to the excessive progressive tax rate arrangement.
Reform the personal income tax system, reasonably raise the basic expense deduction standard according to the changes of residents' basic living consumption level, and increase the deduction of special expenses such as children's education and serious illness medical care.
Second, how to raise the threshold?
The Ministry of Finance said that it will be determined according to the changes of residents' basic living consumption level, and put forward a proposal to raise the threshold, a policy proposal.
In addition to the 5,000 yuan submitted for deliberation this time, there are two mainstream voices:
One is 7000 yuan. At the two sessions this year, the All-China Federation of Industry and Commerce proposed to raise the tax threshold to 7,000 yuan, and at the same time proposed to reduce the highest marginal tax rate of personal income tax from 3%-45% to below 3%-30%.
The other is 10000 yuan. Also at the two sessions this year, Dong Mingzhu, a member of the Chinese People's Political Consultative Conference, proposed to reform the tax threshold to 10000 yuan. Miss Dong's proposal won the hearts of the people, and naturally it was applauded.
Third, when to start implementation
Because personal income tax is a personal income tax law, after the draft is finalized, it will be submitted to the National People's Congress Standing Committee (NPCSC) for deliberation in accordance with the procedures, and will be organized and implemented after deliberation, which is expected to be implemented within this year.
All these elements of reform need to be revised through the individual income tax law before it can be finally determined.
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