As a folk custom, lucky money is usually given by the elders to the younger generation, which belongs to the gift behavior and is not within the scope of personal income tax. According to the provisions of the tax law, personal income tax is levied on income obtained by individuals through work, investment, etc., rather than gift income. Therefore, the lucky money received does not need to pay personal income tax. This means that no matter how much the lucky money is, the recipient does not need to declare it as tax income, nor does he have to worry about the tax burden.

Cultural significance of lucky money;

1, symbolic blessing: the lucky money represents the blessing and kindness of the elders to the younger generation, hoping to be safe and healthy in the new year;

2, meaning longevity: traditionally, it is believed that lucky money has the function of exorcising evil spirits and avoiding special things, which can bless children to live a long life;

3. Educational significance: Through lucky money, children can learn how to manage and use money and cultivate the awareness of financial management;

4. Family interaction: lucky money is a way of interaction among family members, which strengthens the emotional connection between family members;

5. Inheriting culture: Lucky money is a part of traditional culture in China, and traditional culture can be inherited and promoted through this custom.

To sum up, as a gift, lucky money does not need to pay personal income tax. No matter how much it is, the recipient does not need to declare tax income and will not have a tax burden.

Legal basis:

Individual Income Tax Law of the People's Republic of China

the second

Individual income tax shall be paid for the following personal income:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Individual income tax shall be calculated on a consolidated basis according to the tax year when individual residents obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income); Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly basis or by sub-item. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.