The special additional deduction involves six items: children's education, continuing education, serious illness medical care, housing loan interest, housing rent and support for the elderly. When the taxpayer gets his salary every month, these deductions are deducted by the employer in advance to realize pre-tax deduction. Therefore, taxpayers can enjoy preferential tax reduction in the current month without waiting for the annual comprehensive income tax declaration. The system design reduces the immediate tax burden of taxpayers, increases disposable income, simplifies the tax management process and ensures the timely implementation of preferential tax policies.

Calculation method of individual tax:

1, tax threshold: At present, the personal income tax threshold is 5,000 yuan per month;

2. Comprehensive income tax rate: it is applicable to wages and salaries, and adopts an excessive progressive tax rate, which is divided into seven levels and the tax rate ranges from 3% to 45%;

3. Special additional deductions: including four social insurance premiums such as basic old-age insurance, basic medical insurance, unemployment insurance and housing accumulation fund, as well as special additional deductions such as housing loan interest, housing rent, children's education, continuing education and serious illness medical treatment;

4. Calculation of comprehensive income: according to the balance of monthly income after deducting the threshold, special additional deduction, special additional deduction and other deductions determined according to law, the tax rate shall be applied to calculate the taxable amount;

5. Annual settlement: For comprehensive income, taxpayers can make final settlement after the end of the year to ensure that the annual income tax burden is consistent with the actual tax payable.

To sum up, as a pre-tax deduction policy, the special additional tax deduction includes six aspects: children's education, continuing education, serious illness medical care, housing loan interest, housing rent, and support for the elderly, aiming at reducing taxpayers' immediate tax burden, improving their disposable income in the current month, simplifying tax management, and ensuring the timely implementation of tax preferential policies.

Legal basis:

Interim Measures of People's Republic of China (PRC) Municipality on Special Additional Deduction of Individual Income Tax

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The term "special additional deduction for individual income tax" as mentioned in these Measures refers to six special additional deductions for children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent, and support for the elderly as stipulated in the individual income tax law.