After the salary was paid in January, many friends were puzzled when they saw the payroll: why is there so little tax in January? Is the individual income tax reform so strong? Here is the quick calculation deduction of the new individual income tax rate table. Let's have a look!
And it is said that the monthly salary will gradually decrease in the future. What's going on?
Just at the weekend, I saw many people discussing it. Today I'll take the opportunity to explain it to you.
01
In the past, the method of individual income tax collection and payment was relatively simple, which was' withholding and payment on a monthly basis'.
According to the actual salary of each month, first deduct five insurances and one fund, and then subtract the individual income tax threshold. The rest is the taxable income.
Find the corresponding tax rate by comparing the seven level excess progressive individual income tax rate table, and you can calculate the individual income tax to be paid in the current month.
You can take a look at the individual income tax level and tax rate table in December 2018:
02
However, since January 2019, the individual income tax adopts the 'cumulative withholding method', that is, 'annual tax'.
The characteristic of this algorithm is that it is low before tax and high after tax. With the increase of accumulated wages in the year, the tax rate will be upgraded, the individual income tax will increase and the wages will be reduced.
The following is table 1 of the new individual income tax withholding rate in 2019
△ applicable to withholding of individual wages and salaries of residents
According to the withholding method, the calculation formula of individual income tax is as follows:
Accumulated withholding and prepayment of taxable income = accumulated pre tax salary of the current year - accumulated individual tax threshold - accumulated personal part of five insurances and one fund - accumulated special additional deduction
Withholding tax payable in the current period = (cumulative withholding and withholding taxable income & times; withholding rate - quick calculation deduction) - cumulative withholding and withholding tax
03
Through my explanation, you should be able to find that the collection method of individual income tax has changed.
Which of these two tax payment methods is more appropriate?
for instance:
According to the past calculation method, the monthly salary in Beijing is 15000 yuan, and the rate of five insurances and one fund is 22.2%. After deducting 3330 yuan and 5000 yuan of personal income tax threshold, 15000-3330-5000 = 6670 yuan.
6670 yuan is the taxable income. The corresponding tax level is level 2 and the corresponding tax rate is 10%. When the individual income tax formula is inserted, the individual income tax to be paid is 6670 & times; 10% - 210 = 457 yuan.
Since 2019, after the implementation of the new tax law, in addition to different tax calculation methods, there are more special deduction items of individual tax.
As the previous example, in Beijing, the monthly salary is 15000 yuan, assuming another deduction of 1500 yuan for rent.
The individual income tax to be paid each month is as follows:
The tax rate from January to June is 3%, and the individual income tax is 155.1 yuan. Since July, the tax rate has increased to 10%, the individual income tax in the current month is 168.4 yuan, and the individual income tax from August to December is 517 yuan.
04
Some people feel that the individual income tax increases month by month and the received salary decreases gradually, which makes people feel very bad. However, in fact, under the two deduction methods, the total amount of individual income tax deducted each year is basically the same.
Moreover, it is good for taxpayers to pay less in front and more in the back.
Originally, you should pay 307 yuan of personal tax in January, but now you only pay 155.1 yuan for the time being, which is equivalent to giving you a loan for free and returning it at the end of the year.
On the whole, the impact is not particularly great, but one is to pay tax in equal amount every month, and the other is to pay less first and then more ~