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China’s Income Distribution as Derived From State Taxation Administration’s Numbers

The State Taxation Administration released the 2023 Individual Income Tax Settlement and Payment Report. An individual analyzed the data to derive the Chinese people’s income level breakdown.

According to the official data:

  • After raising the minimum income level for taxation from 3,500 yuan to 5,000 yuan per month, the number of people filing income tax dropped from 157 million to 65 million in 2022.
  • Among the income tax-filing people, less than 30 percent paid tax.
  • Among those who paid income tax, 60 percent were in the 3 percent tax rate bracket (5,000 – 8,000 yuan/month).
  • 1 percent of the income tax-filing people have income above 1 million yuan.
  • People with annual income less than 100,000 yuan usually do not need to pay income tax (due to various deductibles).

The author thus deduced:

  • Income between 3,500 yuan and 5,000 yuan per month: Near 100 million people (between 65 million and 157 million).
  • Income above 5,000 yuan per month: 65 million people.
  • Income between 5,000 and 10,000 yuan per month: 45 million people (only 30 percent of the 65 million paid taxes).
  • Income above 100,000 yuan per year: 20 million people (only 30 percent of 65 million paid taxes).
  • Income between 100,000 and 150,000 yuan per year: 12 million people (60 percent paying at the 3 percent tax rate).
  • Income between 150,000 and 1 million yuan per year: 7.3 million people (8 million minus 700,000 whose income is above 1 million yuan).
  • Income above 1 million yuan per year: 700,000 (around 650,000) people.

Source: Aboluo, October 16, 2024
https://www.aboluowang.com/2024/1016/2116093.html