Maternity allowance is tax-free. According to the maternity insurance measures formulated by the people's governments at or above the county level in accordance with the relevant provisions of the state, the maternity allowance and maternity medical expenses obtained by pregnant women are exempt from personal income tax.

legal ground

Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Personal Income Tax Policies Concerning Maternity Allowance and Maternity Medical Expenses Article 1 Maternity allowance, maternity medical expenses or other allowances and subsidies of maternity insurance nature obtained by pregnant women in accordance with the maternity insurance measures formulated by the people's governments at or above the county level according to the relevant provisions of the state shall be exempted from personal income tax. Article 54 of the Social Insurance Law of People's Republic of China (PRC) * * * If the employer has paid maternity insurance premiums, its employees shall enjoy maternity insurance benefits; Unemployed spouses of employees enjoy maternity medical expenses in accordance with state regulations. The required funds are paid from the maternity insurance fund. Maternity insurance benefits include maternity medical expenses and maternity allowance.